For beginners

These are the PowerPoint presentations from the first two meetings that you'll find helpful to get a basic understanding of financial markets and their analysis. 

Defining technical and fundamental analysis methods, depending on the market you're willing to trade: 

There are three types of analysis to make trading and investment decisions in financial markets. 

1. Fundamental Analysis 

Fundamental analysis is about figuring out the real value of an asset by looking at how strong it is in the real world. For example, if you're analyzing a stock, you might look at how much money the company makes, whether it's growing, how much debt it has, and who’s managing it. The idea is to decide if the current market price is too high, too low, or fair. If the company is doing really well but the stock price is low, it might be a good buying opportunity. This type of analysis isn’t just for stocks — people also use it for currencies, commodities, and even crypto by checking things like economic conditions, interest rates, and supply and demand. It’s mostly used by long-term investors who care about the true value of what they’re buying, not just short-term price swings. However, it is best to complement the timeframe that you want to trade with your analysis method. Traders opening positions in the 1H to 4H timeframe pay much attention to fundamental analysis.

2. Technical analysis

It is all about studying charts and price patterns instead of focusing on the actual company or asset. The idea is that prices often move in predictable ways, and by looking at past movements, traders can guess what might happen next. They look at things like trends (whether the price is going up or down), support and resistance levels (where prices often bounce), and technical indicators like moving averages or RSI. There are many different methods within technical analysis besides indicators, and patterns. Technical analysis is super popular with short-term traders, like day traders or swing traders, because it helps with timing trades. It's not about what the company does — it's about what the price is doing and how people are reacting to it in the market. 

3. Sentiment analysis 

It is about understanding the emotions and psychology behind the market — how people feel and how that might affect prices. Instead of looking at financial numbers or charts, this analysis asks, “What does the crowd believe right now?” Traders look at things like news headlines, social media trends, fear and greed indexes, and investor surveys to measure how optimistic or pessimistic people are. If everyone is super confident and buying heavily, a sentiment trader might decide to sell — because markets often reverse when emotions get extreme. This type of analysis is often used to spot bubbles, panics, or turning points in the market. Because the current price moves according to the expectations of traders and investors in the future. That is also why we should pay close attention to economic policies, news, and data on a country's GDP, inflation, and other factors that might affect people's views toward the future. 

Real-World Application of Market Analysis

Market analysis is not limited to traders and investors— it is a fundamental skill used throughout the financial industry. Corporate financial analysts apply it to assess business performance and guide strategic decisions. Hedge funds and asset managers use it to manage large portfolios, forecast trends, and mitigate risk. These analytical approaches are widely taught in finance, economics, and MBA programs, highlighting their importance in both investment decision-making and corporate finance. Developing these skills is essential for anyone pursuing a career in the financial sector.

In financial markets, traders can be grouped based on the time frame they operate in and their trading strategy. Each type often reflects a certain personality, risk tolerance, and lifestyle. Let's go more in-depth here. 

1. Scalpers 

Scalpers make very quick trades, sometimes lasting only seconds or minutes. They aim to profit from small price changes and often make dozens or even hundreds of trades per day. This style requires intense focus, fast decision-making, and strong emotional control. Scalping suits people who are highly detail-oriented, thrive in fast-paced environments, and can handle high pressure. It’s often a full-time activity, requiring a lot of screen time and technical analysis. Trading Timeframe- 1 min to 15min

2. Day Traders

Day traders also open and close all their positions within the same day, but their trades typically last minutes to hours. They avoid holding trades overnight to reduce risk. Day trading requires a strong understanding of technical indicators, real-time news, and price action. This style fits individuals who are decisive, disciplined, and comfortable with short-term risks. Like scalping, it usually demands a full-time commitment and a consistent routine. Timeframe - 30 min to 1D

3. Swing Traders

Swing traders hold positions for several days to weeks, aiming to profit from medium-term market movements. They often use a mix of technical and fundamental analysis to spot trends or reversals. This style is more flexible and can suit those who have other jobs or commitments, as it requires less constant monitoring. Swing traders tend to be patient, analytical, and comfortable with moderate risk. It’s a good balance between active trading and longer-term investing. Timeframe - 4H to days and weeks

Who Participates in the Financial Markets? 

The market is made up of many different players, ranging from individual traders to massive institutions. Each participant has a different goal, which influences market behavior. 

1. Retail Traders 

These are everyday individuals trading with their own money through platforms like Robinhood or MetaTrader. They can be scalpers, day traders, swing traders, or long-term investors. While retail traders represent a small portion of overall market volume, their collective actions — especially in events like meme stock rallies — can move markets temporarily. 

2. Institutional Investors

 This group includes hedge funds, investment banks, pension funds, and mutual funds. They manage large sums of money and often have access to advanced tools, faster data, and more resources. Institutions tend to influence markets more heavily due to their size. For example, a hedge fund might use technical analysis for short-term trades, while a pension fund may rely on fundamentals for long-term investment. 

3. Corporations 

Companies enter markets to raise capital, hedge risks, or manage their cash. For instance, a business might issue shares or bonds, or buy back its own stock. Multinational firms also trade currencies or commodities to protect themselves from exchange rate or price changes. 

4. Commodity and Energy Companies 

These include oil producers, mining firms, and agricultural businesses. They often use the futures and options markets to hedge against price fluctuations. For example, a wheat farmer might sell futures contracts to lock in a good price before harvest. 

How These Players Interact: 

All of these participants are part of one interconnected market. Retail traders often respond to market moves created by institutional investors, while corporations and commodity producers influence supply and demand. Investment banks help structure deals, provide market liquidity, and sometimes trade for their profit. Hedge funds may compete or cooperate with banks and funds, depending on strategy. Even though their goals differ, from speculation to long-term planning, all players are influenced by economic conditions, sentiment, and analysis tools.