1. “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

3. ToS candlestick 1y:1d

4. Option chain

5. Controversial Math Fact

6. 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

7. 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

8. Margin

9. 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

10. Margin Call

11. 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

12. 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

13. 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

14. 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

15. 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