Trading Lessons for Beginners: Definition of Trading and Financial Markets

[00:01] trading lesson for beginners. This means that those who already understand trading can sit with us, but if they have any questions, inquiries, or anything they don't like, they can leave a comment and we'll explain it to them. That's no problem.

[00:14] For beginners, we'll start from the beginning. I'll try to keep each video short, aiming for five to seven minutes, or ten minutes maximum, because I'll be long for you. Now, the first thing is that when someone wants to start trading, they need to understand the

[00:27] basics of the trading world: who the people involved are, who the parties are, who the members are. Only then can we start with strategies and platforms. The first thing I do with my students when they come here to the office is understand what the

[00:39] word "trading" means. Okay, simply put, I'll leave you now. Answer me in the comments before I answer you. I'll look at them later. Simply put, the word "trading" comes from something that is traded, something that is circulated. Okay, its translation is... firstly, its synonym is trading. Trading

[00:55] can be translated into Arabic as " trade." For example, trade is when we buy something at a low price and

[01:24] price drop even more. That's our profit, just like when we buy it, for example, in a our profit, just like when we buy it, for example, in a position. I hope you're watching everything I'm saying. For example, you buy it in a position, like here.

[01:38] I place a buy order and wait for the price to rise. For example, I wait for it to go up to 100 dirhams, and I wait for it to go up to 200 dirhams so I can take my 100 dirham difference. take my 100 dirham difference. Okay, this is a normal trading method, as we know it in

[01:53] all trading. The only good thing about trading is that we can go to the about trading is that we can go to the

[02:07] selling position. For example, we have 200 dirhams here, for example, in that position. I say I bought it for 200 dirhams. I say that it's going to go down, and every time it goes down, I make a profit.

[02:19] 100 dirhams, I'll make the 100 dirham difference. I do the same thing again when... We talked about the term "trading," what it means. We'll learn what trading is, what it involves. It learn what trading is, what it involves. It

[02:34] involves two parties: the seller and the buyer. This is in commerce, or a commerce, or a normal business transaction where a person sells. There's the seller, and the buyer sells and transfers. That's how it works. normal business transaction where a person sells. There's the seller, and the buyer sells and transfers. That's how it works.

[02:48] In the field of trading, we have one person. From the side, there are three: the seller who sells their goods, the buyer as we discussed, so there are two, and the middle one, the middleman, who is our financial intermediary in trading. We call them an inbroker, an incoterm trading, or a

[03:03] our financial intermediary in trading. We call them an inbroker, an incoterm trading, or a say, "We understand the seller and the buyer; one sells and one transfers the goods." Okay, but what does the middleman do? For one sells and one transfers the goods." Okay, but what does the middleman do? For people

[03:18] who trade, we don't have the "excise" (a term used to describe the financial activities we do). These financial agents are called Disfinance, we can't send them directly from their names. Their names are the big banks, okay? The ones called "

[03:36] liquidity providers" in our terminology, okay? The big banks, liquidity providers" in our terminology, okay? The big banks, like JB, Mong Stan, anyway, there are many, almost all of America, okay? We didn't say, as I told you, we're just ordinary people.

[03:50] We go and tell him, "It's her right, I want two Amazon transactions, brother." It's impossible. These must be like the ones you deal with B2B, meaning from company to company. So, that middleman, his job or service is to bring you closer to that liquidity provider. He

[04:07] from that service he does for you. Of course, he can't work with you for free. That's his fee. You can't find a broker who tells you, "It's her right, I don't give you a commission." I'll tell you, no, this isn't the case, everything is free. This is n't the case. If he takes something away, he adds something else. Just so you

[04:20] later, God willing. So, for example, there's the wholesaler who sells wholesale. It's impossible for an ordinary person like me to go to the wholesaler and say, "Brother, give me a kilo of rice." That's impossible because he sells to people. Shops sell retail.

[04:34] He won't sell to you. So, when you go to buy the goods you want, you go to the retailer, the who buys them for you from the wholesalers. For example, a kilo of rice costs three dirhams, and he buys it from the wholesaler for two dirhams. With that transport and everything else he brings, he adds one

[04:48] dirham for his service. That's all there is to it. Do you understand? Let me give you another example That's all there is to it. Do you understand? Let me give you another example to make it clearer. For example, if you want fruit or vegetables, would you go to the landowner, the farmer who grows the fruits and vegetables, and

[05:02] say, "Brother, give me a kilo of bananas" or "a kilo of onions"? You can't go to him; he can't sell to you at all. Do you understand? Because that's a middleman. He sells to people whose job it is to distribute the produce so that it reaches you. The shopkeeper, the

[05:15] greengrocer, the middleman—that's the middleman's job. He takes the produce in bulk and sells it to us in smaller quantities. I hope you understand the idea. If you understand it and like how I explained it, leave a comment below to encourage me. So now we've seen everything: the

[05:27] middleman, the seller, and the buyer. Now, what is sold between these two people and the three people? What is sold? Normally, in trade, it's a standard product. Here, we call them "disactivating finance" in Arabic. Honestly,

[05:42] excuse me, I don't know the exact name. There are many different types and forms of financial markets, which are the financial markets. These are the good ones we need to understand now. What is finance? What do you think it is? How many are there? Let's leave that in the comments for now

[05:57] How many are there? Let's leave that in the comments for now before I explain. Everyone might say six or seven, depending on how they consider financial markets. I'll tell you, for fixed, well-known, and working markets, there are five financial markets. By the way, for

[06:12] those who are already trading, there's a promotion in our broker, Lite Finance, to celebrate their anniversary, probably the 16th or 17th. They have a promotional code that might give you a bonus of 100 bonus points, which is a Happy Birthday bonus. You'll find it in the

[06:27] description box below. When you want to deposit, enter that promo code and you'll get a 100% bonus. Enjoy! If you don't know how to contact their Moroccan branch, just call them and tell them you want the promo code. They'll give you two examples. The first and

[06:41] most popular market is Forex, which is trading foreign currencies. It's the currency market, meaning you buy Euros against Dollars and sell Dollars against Pounds, which are expensive.

[06:53] Forex means you buy and sell foreign currencies. This foreign currencies. This market is easy to understand. It's like a currency exchange office. That one does Forex; they bring you Euros at one price and sell them to you at a lower price.

[07:08] You buy from them in Dirhams, and they sell you Euros at whatever price they want and take their commission. That's Forex. This is the people's favorite; everyone knows it. How many people confuse Forex with trading, saying, " I do Forex," when you're not? You're not doing

[07:22] forex trading, you're trading forex. Trading encompasses all of this, okay? Popular among the masses. Another one that's new, not new, but anyway, so, well, this is crypto money,

[07:34] meaning digital currencies, you know them, the encrypted currencies. There's another market, a very well-known financial market that has existed since ancient times, which is the stock market.

[07:48] since ancient times, which is the stock market. These are the shares of companies, for example, the shares of Amazon, Apple, Facebook, and you go and buy shares of the company you want to buy. This is called the stock market. Okay, another market that many

[08:02] people don't know about is the index market, or index market. Okay, or indexes, or indices. This is the index market. This is how it works. There's an index

[08:14] for a country, for example, let's take France. France's index is called the CAC 40. Why that number 40? That represents 40, the strongest and largest company in France. Okay,

[08:28] they all gather in one index, for example, in America. America is the only one that has so many because America is big and its indices are divided according to sectors: trade, mining, according to sectors: trade, mining, technology, hospitals,

[08:42] pharmaceuticals, healthcare, etc. For example, the one they know is the Nasdaq, For example, the one they know is the Nasdaq, represented by AS and HAND, which lists the top 100 companies. Okay, there's the S&P 500,

[08:56] each in its own specialized sector. This is for people who want to invest their money. Instead of buying from here, Amazon, Facebook, Microsoft, and so on, they buy the index that gathers them all and reduces their trading power. They

[09:10] think, "Break here, sell there," and that's it, and it lets it rise. Okay, these are the indices. As for Morocco, it used to have one called the MAZI, I think, but they changed the name. I don't remember the name, honestly. The name I

[09:22] something in it. 10 years and 30 companies, I think 30, okay. We have one market left. May God grant us success in our studies. I forgot it. What is it? This is what we have left here. Oh, the market for commodities, which includes gold, silver,

[09:41] gold, silver, agricultural products, wheat, cocoa, coffee. agricultural products, wheat, cocoa, coffee. The majority of it is silver, so it's all commodities. Okay, so these are the financial The majority of it is silver, so it's all commodities. Okay, so these are the financial

[09:57] financial markets are very well known, and we want them. We're quizzes. Okay, I review the video to understand this well. Note this down well. I hope you liked the first lesson and benefited from it. I hope

[10:11] you liked the way I delivered and presented it. Honestly, I'm very happy because I'm sharing this with you in the way I like. How much I've done this, how much I've like. How much I've done this, how much I've shared these things.

[10:25] Thank you. Thank you so much for staying with me until the end. We'll see you in the second lesson, which will have many surprises. Review this well so you don't miss anything and so you don't get too many videos. Don't forget your support, like, and comment if you have any

[10:38] next episode. Share with your friends so they can benefit too. Let's all become experts. Yeah.