Trading
Trading in the stock market can be lucrative and fun. This course covers everything the retail trader should know about investing as well as more advanced material to remain profitable in the market.
You should be familiar with the basics of how the stock market works before continuing. The trading course depends on understanding the terminology commonly used by both retail and institutional traders, the mechanics of making trades in the market, and some basic common options strategies, which are all covered in the Fundamentals course.
After completing this course, you should be well equipped to trade confidently if you choose, no matter how much money you start with or what your goals are. You’ll learn:
- how to apply basic stock and options trading strategies to make trading decisions
- how to manage your portfolio to minimize losses when they happen (and they will happen)
- risk assessment strategies to make better informed decisions about the strategies you use
- how analysts and bigger traders value businesses, which has some impact on the prices of the securities you’ll trade
I’d advise that you read the material in the following order:
- Basics
- Assessing Risk
- Portfolio Management
- Understanding Business Fundamentals
- Basic Trading Strategies
- Advanced Trading Strategies
Basics
The Basics class includes discussion of some new terminology not covered in the Fundamentals course. You’ll:
- understand what a portfolio is
- discover what “strategy” means in the context of trading
- learn about key periods during the year where stock and option prices can fluctuate wildly, and why
Assessing Risk
This class builds on the Basics class. In this class you’ll:
- what “risk” means in the context of trading
- how to interpret various quantities, like the Greeks, to estimate the likelihood of a gain or loss
- limitations on the accuracy of these assessments
Portfolio Management
This class builds on both the Basics and Assessing Risk classes to enhance your understanding of your portfolio. It covers:
- what portfolio management means
- how to apply risk assessment to understand the risk your portfolio is exposed to
- how this risk assessment can be used to develop strategies to minimize losses to your portfolio
Understanding Business Fundamentals
Businesses have accounting procedures and they develop strategies to bring goods and services to the market which they believe will improve their profitability. The Understanding Business Fundamentals class covers everything you should know in order to assess the quality/health of a company. This class covers:
- what an earnings report is
- what metrics are considered key to understanding the health of a company
- how earnings reports can affect the price of a company’s stock
Basic Trading Strategies
This class builds on all the classes above. Everything in that material can be used to develop some asic strategies:
- trading fundamentals
- speculative trading
- hedging risk
Advanced Trading Strategies
The final class expands the number of tools in your box. You’ll leverage your understanding of stock and options basics covered in the Fundamentals course, and the basic strategies, to:
- develop advanced options strategies
- learn about higher risk and higher reward strategies