“Beware of little expenses; a small leak will sink a great ship.” The Trading Matrix “Beware of little expenses; a small leak will sink a great ship.” -Benjamin Franklin

ToS candlestick 1y:1d

Option chain

Controversial Math Fact

Cash and Margin accounts Cash account Cannot utilize margin Must have the cash upfront to buy securities or sell securities that are owned Margin account Allows investor borrow against the value of the assets owned Leverage Cash and Margin accounts

Buying on margin is borrowing money from a broker to purchase/sell a security Margin trading allows you to buy more stock than you’d be able to normally The drawback from this is higher risk The benefit is leverage Margin requirement The percentage of marginable securities Initial margin requirement Percentage required when an investor opens a position Requirement for stocks is 50% Maintenance margin requirement is 30% Margin

Margin

A broker’s demand to an investor using margin to deposit more cash or securities A margin call occurs from a broker if one or more of the securities in an investors portfolio falls below maintenance requirement Short Margin Mandates 150% margin requirement Translates: you must have 150% of the value of the short position Margin call

Margin Call

Short Margin Stock price of XYZ is $100 You short 10 stocks of this company, XYZ So when shorting 10 shares of XYZ at $100.. You must have at least $1500 in your account to confirm this trade $1000 for the 100% (10 x $100) Plus $500 (10 x $100 x 50% Short Margin

Performing A Trade Orders There’s more than three but we will focus on market, limit, stop Market Order Your order is executed without a price tag attached Limit Order Your order is attached with a price tag Stop Order Defensive order Essentially stops your loss Use a stop order if the market is open and you have exposure Performing A Trade

Attributed to Charles Dow, but William Hamilton's writings (served as cornerstone for The Dow Theory book ) Assumptions in the Dow Theory: Manipulation: manipulation of the primary trend is not possible. Theory Not Perfect: not 100% Dow Theory Simplified

Market Movements: 3 Types Market Movements: 3 types of movements Primary movement: represent the broad underlying trend of the market and can last few months to years. (Bull and Bear markets as mentioned above) Secondary Movement: counter movement to the primary movement, which are reactionary in nature. In a bull market  a correction. In a bear market  reactionary rallies Daily Fluctuations: can be highly volatile, not reliable unless in the greater context of the picture. (finding rumors/news priced in) Market Movements: 3 Types

3 Stages Primary Bull Market Primary Bear Market Accumulation – Stage 1 Big Move – Stage 2 Excess – Stage 3 Primary Bear Market Distribution – Stage 1 Despair – Stage 3 3 Stages