Author: Keith Cotterill
Over the years Keith went on to create bespoke trading software to successfully trade commodities like Gold, Oil and Wheat, individual stocks, indices like the FTSE 100 and DOW as well as Forex.
And since 1997 Keith has shared his proven approach with thousands of ordinary people through a series of hugely popular programmes
The Fast Track Approach
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Trading basics
Just before we wade into the specific detail of trading and investing, I want to cover a few trading fundamentals for any newcomer. If you’re already an experienced trader or investor, you can move on to step two.
What are the financial markets?
The financial markets are a global business. Each day traders and investors buy and sell millions of different financial instruments around the world worth tril- lions of dollars.
What is traded in these markets?
Many different instruments are traded in the financial markets, the most popu- lar and common ones are as follows.
• Stocks – equities
• Bonds – government and corporate
Where are they traded?
Financial instruments are traded at designated exchanges around the world. The most famous being Wall Street. See the links section of tesstrader.com for a detailed list of all the major traded exchanges.
Who trades in these markets?
Market makers, financial institutions, banks, governments, professional specu- lators, hedge funds, floor traders, and pension funds trade in these exchanges. You will have seen the exchanges on many occasions on the TV. Floor traders are the ones wearing the bright coloured jackets.
Two different approaches to trading
There are two primary ways to analyse and trade the financial markets. The first of these is known as fundamental analysis. The second approach is by using price charts, known as technical analysis.
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