101Lessons on the Stock Market with Artificial Int

The Author's words

I am committed to presenting people with the full truth about the stock market. I have found that traders who rely solely on technical analysis expose themselves to significant financial and intellectual harm, resulting in significant losses in the stock market. I feel compelled to share this discovery so no one can claim ignorance.

Stocks are the most volatile assets in the capital market, making them inherently risky. The price fluctuations can reach up to 13 dollars on the downs and 10 dollars on the ups, which requires a wise approach.

While the stock market can be extremely rewarding, relying solely on a single tool known as 'technical analysis' can lead to losses. Technical analysis is a fallacy, and many individuals have failed to adhere to its misguided principles that are out of touch with the economic reality of the 21st century.

If you lack a thorough understanding of how this economic system functions, it is advisable not to invest in the stock market, therefore I wrote this book to provide you with a comprehensive answer to the most complicated issues in the capital market.

My name is NathanOr BenZvi, born in 1991. I first traded in the capital market in 2017 and experienced significant losses as a result of using the technical analysis method. After extensive research, I discovered that this method was the main reason for my downfall. I learned that it has a lack of scientific foundation and is therefore meaningless for our current era. Many studies support my assertions.

This book is designed to provide you with comprehensive knowledge of the capital market and offer the most accurate and reliable information. Each chapter has been carefully designed by Artificial Intelligence to ensure maximum brevity and focus. Through the following 101 chapters, you will gain the necessary insights into the capital market that will allow you to embark on your investment journey with confidence.

Full Disclosure

Trading and investing in stocks, commodities, gold, oil, foreign exchange and crypto involves risking your money. Any action you perform in the capital market is your sole responsibility and not our responsibility.

Uncontrolled buying of stocks will cause high volatility which will wipe out your investment portfolio and cause it to be wiped out immediately within a few months.

We will not be held responsible for damages or losses caused to you by the capital market in any way or form!

All the study material is for the purpose of learning the entire essence of the capital market only, we will not teach you methods or strategies according to the technical analysis method, which I also do not advocate for its flawed principles.

Best Regards,

NathanOr BenZvi

Introduction: The independence of candlesticks in the stock market and the limitations of technical analysis

In the world of stock trading, candlestick charts are commonly used to analyze price movements and make predictions. It is important to understand that each candlestick represents a specific period, such as a day, week, or month, and provides information about the opening, closing, high, and low prices during that period. However, it is crucial to recognize that each candlestick is independent of the previous one, and this lack of connection challenges the effectiveness of technical analysis in predicting future price movements. Let's explore this concept in more detail.

1. Candlestick Independence:

Each candlestick on a chart represents a distinct period of time, whether it's a day, week, or month. The opening, closing, high, and low prices during that specific period are reflected in the candlestick's shape. It is important to remember that the stock market is influenced by a multitude of factors, such as economic news, corporate announcements, global events, and investor sentiment. These factors can cause prices to fluctuate significantly, making it difficult to establish a direct link between one candlestick and the next.

2. Randomness and Market Efficiency:

The concept of randomness is essential when discussing the limitations of technical analysis. The stock market is inherently complex, and its participants include millions of individual investors, institutional traders, and algorithmic trading systems. As a result, the market incorporates a vast amount of information and reacts to it rapidly. It is challenging to predict how the market will react to any given event, as its response is influenced by an array of unpredictable variables. This randomness makes it difficult for technical analysis, which relies on historical price patterns, to consistently forecast future movements.

3. Limitations of Technical Analysis:

Technical analysis is a method of predicting future price movements based on past market data, such as price and volume. It utilizes various tools, indicators, and chart patterns to identify potential trends and reversals. While technical analysis has its merits and can provide valuable insights into market behavior, it is important to recognize its limitations.

a. Incomplete Information:

Technical analysis solely relies on historical price data, ignoring fundamental factors that can impact a stock's value, such as earnings, dividends, market conditions, and macroeconomic trends. These factors can significantly influence market movements, making it challenging for technical analysis alone to capture the full picture.

b. Interpretation Challenges:

Technical analysis often involves subjective interpretation of chart patterns and indicators. Different analysts may interpret the same information differently, leading to inconsistent predictions. Additionally, the human biases and emotions involved in analyzing charts can further complicate accurate predictions.

c. Efficient Market Hypothesis:

The efficient market hypothesis suggests that stock prices reflect all available information, making it impossible to consistently outperform the market through technical analysis alone. If the market efficiently incorporates all relevant information, it becomes difficult to exploit price patterns and predict future movements solely based on historical data.

In conclusion, each candlestick in the stock market represents a distinct period and lacks a direct connection to the previous one. This lack of continuity challenges the effectiveness of technical analysis in predicting future price movements. The complexity and randomness of the market, combined with the limitations of technical analysis, highlight the need for a comprehensive approach that considers both technical and fundamental factors when making investment decisions.

Lesson 1: What is the stock market?

The stock market is the market were buying and selling transactions of shares, bonds, options, and other financial instruments are carried out. This market has an impact on the economy and society as a whole, so everyone should understand how it works and what are the mechanisms that promote it.

In the stock market, the price of a share or any other financial instrument changes all the time and depends on a wide variety of factors. Public companies regularly report their results, which affect their stock prices. In addition, a wide variety of factors such as time horizons, policy matters, types of events affecting the economy and corporate affairs can affect the prices of stocks and other financial instruments.

There are two main sources of income in the stock market: dividends and capital gains. Dividends are payments of profits by public companies to their shareholders. Capital gains refer to the difference between the sale price of a share and its original price. If the value of the stock exceeds the purchase price, the investor can sell it at a profit.

Investing in the stock market can be done in different ways, such as buying individual stocks, investing in mutual funds or exchange-traded funds (ETF), and using different strategies such as value investing, growth investing or income investing. It is important to conduct thorough research, analyze the potential risks and rewards, and understand the means of investment before investing in the stock market.

It is also important to remember that the stock market is subject to fluctuations and volatility. It is affected by both macroeconomic and microeconomic events, such as inflation, interest rates, political events, natural disasters, and individual company performance. Therefore, it is essential to maintain a long-term perspective, be disciplined in investment decisions and diversify the investment portfolio to minimize risks.