Trading
Verified@ivangdavila
npx machina-cli add skill @ivangdavila/trading --openclawGuardrails
On first use: Show user legal.md disclaimers and ask them to acknowledge before continuing.
Never do:
- Recommend specific securities, cryptos, or trades ("buy X", "sell Y")
- Predict price movements ("X will go up")
- Provide personalized advice based on user's situation
- Suggest leverage amounts or specific position sizes for their account
Always do:
- Use educational language ("some traders use...", "a common approach is...")
- Remind users this is education, not advice
- Recommend consulting licensed professionals for personal decisions
- Include risk warnings when discussing leveraged products
Escalate to professional: User mentions life savings, retirement funds, borrowed money, or gambling behavior ("need to win back").
Triggers
Activate on: day trading education, swing trading concepts, technical analysis basics, forex/crypto fundamentals, position sizing concepts, stop loss methodologies.
Trading vs Investing
| Trading | Investing |
|---|---|
| Short-term (minutes to weeks) | Long-term (years) |
| Active monitoring | Mostly passive |
| Higher costs | Lower costs |
| Short-term tax rates | May qualify for lower rates |
Trading Styles
| Style | Timeframe | Characteristics |
|---|---|---|
| Scalping | Seconds-minutes | Full attention required |
| Day trading | Intraday | Close positions by EOD |
| Swing trading | Days-weeks | Overnight exposure |
| Position trading | Weeks-months | Fundamental + technical |
Getting Started Path
Common educational progression:
- Demo/paper trading (1-3 months simulated)
- Focus on one market first
- Start small when going live
- Keep a trading journal
For detailed framework, see getting-started.md.
Risk Concepts
Common principles in trading education:
- Position sizing — Some traders limit to 1-2% risk per trade
- Stop losses — Predetermined exit points
- Risk/reward — Evaluate potential gain vs loss before entry
For calculations and details, see risk.md.
Technical Analysis Basics
Studies price/volume patterns. Probabilistic, not predictive.
- Chart patterns (head & shoulders, flags, triangles)
- Indicators (RSI, MACD, moving averages)
- Support/resistance levels
For patterns and indicators, see technical.md.
Platform Evaluation
Factors traders often consider:
- Regulatory status (SEC/FINRA, FCA, etc.)
- Fee transparency
- Execution quality
- Available markets
US note: Pattern Day Trader rule requires $25k minimum for 4+ day trades per 5 days (FINRA).
For broker factors, see platforms.md.
Common Pitfalls
| Pattern | Why it's discussed |
|---|---|
| No predetermined exit | Single trades can wipe gains |
| Excessive leverage | Amplifies losses |
| Overtrading | Costs + emotions compound |
| No written plan | Random entries, poor results |
Overview
This skill provides short-term trading education across stocks, forex, and crypto. It covers technical analysis, risk management concepts like position sizing and stop losses, and platform evaluation to assess brokers and markets. It emphasizes that this is educational content, not financial advice, and encourages consulting licensed professionals for personal decisions.
How This Skill Works
Traders analyze price and volume to identify probabilistic setups using chart patterns and indicators such as RSI, MACD, and moving averages. Risk concepts guide entries with fixed risk per trade and predetermined exits via stop losses, while platform evaluation considerations help compare regulatory status, fees, and execution quality.
When to Use It
- To learn day trading or swing trading concepts with technical analysis basics.
- When evaluating brokers and platforms for regulatory status, fees, and execution quality.
- When practicing risk management, including position sizing and stop losses.
- When studying chart patterns and indicators to build probabilistic trade ideas.
- When moving from demo trading to live trading and keeping a journal.
Quick Start
- Step 1: Demo/paper trade for 1-3 months (simulated).
- Step 2: Focus on one market first (stocks, forex, or crypto).
- Step 3: Start small when going live and maintain a trading journal.
Best Practices
- Begin with demo/paper trading (1-3 months) to learn without real money.
- Focus on one market first (stocks, forex, or crypto) before expanding.
- Start small when you go live and scale up as you gain evidence.
- Keep a trading journal to record setups, outcomes, and reflections.
- Review risk concepts (position sizing, stop losses, risk/reward) and platform details before trades.
Example Use Cases
- Recognizing a chart pattern (e.g., head & shoulders) and outlining a plan.
- Calculating risk/reward and sizing the position before entry.
- Using a stop-loss to manage exits in a simulated trade.
- Evaluating brokers for regulatory status, fee transparency, and execution quality.
- Observing the Pattern Day Trader rule in the US and planning trades accordingly.
