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Trading Basics

The purpose of this course is to equip you with the knowledge required to comprehend the financial statements of a company and understand the various transactions that take place in the stock market so that you can replicate the strategies discovered by the extant academic literature.

The first part of the course provides a brief introduction to financial statements and various common filings of firms. You will learn how to obtain information regarding a company's performance from them and use the information to build trading strategies. Next, you are taught basic asset pricing theories so that you will be able to calculate the expected returns of a stock or a portfolio. Finally, you will be introduced to the actual functioning of asset markets, type of players in the market, different types of orders and the efficient ways and opportune time to execute them, trading costs and ways of minimizing them, the concept of liquidity .etc. This knowledge is required to develop efficient algorithm to execute various trading strategies.

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What's inside

Syllabus

Basics of Financial Statements

This module provides a brief introduction to financial statements and various common filings. These are the most important sources for obtaining information regarding a company's performance. Most strategies are indeed based on financial statements. After completing this module you will be able to get the important details from the balance sheets.

Financial Statement Analysis

The purpose of this module is to equip you with the skills required to identify accounting information required for building trading strategies. After completing this module you will be able to calculate the key financial ratios.

Asset pricing theories

Before you start trading, you should first be able to calculate the expected return from a stock. The expected return comes from various asset pricing models such as Capital Asset Pricing Model (CAPM), Arbitrage Pricing Theory (APT) and Fama-French Three Factor Model. The purpose of this module is to equip you with the skills required to calculate the expected returns of a stock (or) a portfolio. After completing this module you will be able to calculate the expected returns of a stock.

Basics of Market Microstructure

This module will provide a detailed introduction to the actual functioning of asset markets. The module will cover essential details such as type of players in the market, different type of orders and the efficient ways and opportune time to execute them, trading costs and ways of minimizing them, the concept of liquidity .etc. This is required to develop efficient algorithm to execute various trading strategies. After completing this module you will have a clear idea of different types of orders and which orders to use when.

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Introduces students to essential trading concepts and financial statement analysis to make informed investment decisions

Taught by seasoned instructors with deep expertise in finance and trading strategies

Incorporates practical knowledge of asset markets and trading strategies

Course is relevant to individuals seeking to enhance their understanding of finance and trading

May require prior knowledge in finance for optimal learning

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Reviews summary

Difficult complex trading not for beginners

learners say this course is difficult for beginners in trading and students without a background in commerce. learners report that the course offers no explanations and does not elaborate on the subject matter.

Activities

Be better prepared before your course. Deepen your understanding during and after it. Supplement your coursework and achieve mastery of the topics covered in Trading Basics with these activities:

Review accounting basics

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Cover the fundamentals of accounting to strengthen your understanding of financial statements.

Browse courses on Financial Statements

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Review key accounting concepts, such as assets, liabilities, equity, revenue and expenses.
Practice reading and understanding financial statements, including the balance sheet, income statement, and cash flow statement.
Complete practice problems to test your understanding of accounting principles.

Create a study package

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Organize and review your course materials to enhance your understanding and retention.

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Gather all course materials, including lecture notes, assignments, quizzes, and exams.
Organize the materials into a logical order, creating a comprehensive study guide.
Review the materials regularly to reinforce your understanding and identify areas for further study.

Participate in online discussions

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Join online study groups or forums to connect with other students, share insights, and discuss course concepts.

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Join online discussion forums or groups related to the course topics.
Actively participate in discussions, ask questions, and provide answers to support fellow students.
Collaborate on group projects or case studies to apply theoretical knowledge.

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Practice calculating asset returns

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Engage in guided tutorials to master the calculation of asset returns and understand how to use various asset pricing models.

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Follow online tutorials or courses on asset pricing theories, such as the Capital Asset Pricing Model (CAPM) and the Fama-French Three Factor Model.
Practice applying these models to calculate expected returns for stocks and portfolios.
Complete practice problems and quizzes to test your understanding of asset pricing concepts.

Develop a trading resource library

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Compile a collection of useful resources, such as books, articles, and online tools, to enhance your knowledge of trading and financial markets.

Browse courses on Market Analysis

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Search for and gather high-quality books, articles, and online resources on trading and financial markets.
Organize the resources into categories, such as technical analysis, fundamental analysis, and risk management.
Use the resources to supplement your studies and gain a deeper understanding of the financial markets.

Simulate trading strategies

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Gain hands-on experience by simulating different trading strategies and testing their performance in real-time market conditions.

Browse courses on Trading Strategies

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Use online trading simulators or platforms to practice executing trades and managing portfolios.
Experiment with different trading strategies, such as trend following or momentum trading, and track their performance.
Analyze the results of your simulations to identify areas for improvement and refine your trading strategies.

Read 'Quantitative Trading' by Ernest Chan

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Gain insights into quantitative trading strategies, risk management techniques, and execution algorithms through this comprehensive book.

View Quantitative Trading: How to Build Your Own... on Amazon

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Read through the book, paying close attention to chapters on risk management, trading strategies, and execution algorithms.
Take notes and highlight important concepts to aid your understanding and retention.
Complete the practice exercises and case studies provided in the book to apply your knowledge.

Attend a trading workshop

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Engage in hands-on learning at a trading workshop, where you can interact with experienced traders and learn practical trading skills.

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Research and identify a reputable trading workshop that aligns with your learning goals.
Register for the workshop and prepare any necessary materials.
Actively participate in the workshop, ask questions, and learn from the expert instructors.

Career center

Learners who complete Trading Basics will develop knowledge and skills that may be useful to these careers:

Auditor

Auditors examine financial records to ensure that they are accurate and compliant with regulations. They need a strong understanding of accounting principles and auditing procedures. This course helps build a foundation for success in this role by providing an introduction to financial statements and various common filings.

See salaries and explore the career path for Auditor

Portfolio Manager

Portfolio Managers manage investment portfolios and make decisions on how to allocate funds. This role requires a deep understanding of financial markets and investment strategies. This course helps build a foundation for success by providing an introduction to financial statements and various common filings, as well as teaching basic asset pricing theories.

See salaries and explore the career path for Portfolio Manager

Trader

Traders buy and sell stocks, bonds, and other financial instruments. They need a deep understanding of financial markets and a strong ability to analyze data. This course provides a helpful introduction to financial statements and various common filings, as well as teaching basic asset pricing theories, which can be beneficial for those who wish to enter this career field.

See salaries and explore the career path for Trader

Financial Analyst

Financial Analysts provide insights and recommendations to businesses and investors on investment decisions. These professionals need a strong foundation in financial modeling and analysis. This course helps build a foundation for success in this role by providing an introduction to financial statements and various common filings, as well as teaching basic asset pricing theories.

See salaries and explore the career path for Financial Analyst

Investment Banker

Investment Bankers help companies raise capital and advise on mergers and acquisitions. They need strong financial modeling skills and knowledge of the capital markets. This course provides a helpful introduction to financial statements and various common filings, as well as teaching basic asset pricing theories, which can be beneficial for those who wish to enter this career field.

See salaries and explore the career path for Investment Banker

Risk Manager

Risk Managers identify, assess, and mitigate risks for businesses. They need a strong understanding of financial risk management and the ability to analyze complex data. This course helps build a foundation for success in this role by providing an introduction to financial statements and various common filings, as well as teaching basic asset pricing theories.

See salaries and explore the career path for Risk Manager

Financial Planner

Financial Planners help individuals and families plan for their financial futures. They need a strong understanding of financial planning and the ability to communicate complex concepts clearly. This course may be helpful for Financial Planners by providing an introduction to financial statements and various common filings, as well as teaching basic asset pricing theories.

See salaries and explore the career path for Financial Planner

Compliance Officer

Compliance Officers ensure that businesses comply with all applicable laws and regulations. They need a strong understanding of regulatory requirements and the ability to interpret complex legal documents. This course may be helpful for Compliance Officers by providing an introduction to financial statements and various common filings.

See salaries and explore the career path for Compliance Officer

Consultant

Consultants provide advice and guidance to businesses on a variety of issues. They need a strong understanding of business principles and the ability to solve complex problems. This course may be helpful for Consultants by providing an introduction to financial statements and various common filings, as well as teaching basic asset pricing theories.

See salaries and explore the career path for Consultant

Data Analyst

Data Analysts collect, analyze, and interpret data to help businesses make better decisions. They need a strong understanding of data analysis techniques and the ability to communicate complex findings clearly. This course may be helpful for Data Analysts by providing an introduction to financial statements and various common filings, as well as teaching basic asset pricing theories.

See salaries and explore the career path for Data Analyst

Economist

Economists study the production, distribution, and consumption of goods and services. They need a strong understanding of economic theory and the ability to analyze complex data. This course may be helpful for Economists by providing an introduction to financial statements and various common filings, as well as teaching basic asset pricing theories.

See salaries and explore the career path for Economist

Quantitative Analyst

Quantitative Analysts analyze complex data sets and develop mathematical models to help businesses make better decisions. Those who wish to succeed as Quantitative Analysts should have a strong foundation in mathematics, statistics, and computer science. This course may be helpful for Quantitative Analysts by providing an introduction to financial statements and various common filings, as well as teaching basic asset pricing theories.

See salaries and explore the career path for Quantitative Analyst

Statistician

Statisticians collect, analyze, and interpret data to help businesses and organizations make better decisions. They need a strong understanding of statistical methods and the ability to communicate complex findings clearly. This course may be helpful for Statisticians by providing an introduction to financial statements and various common filings, as well as teaching basic asset pricing theories.

See salaries and explore the career path for Statistician

Actuary

Actuaries use mathematical and statistical methods to assess risk and uncertainty. They work in a variety of industries, including insurance, finance, and consulting. Those who wish to become Actuaries typically need a bachelor's degree in mathematics, statistics, or a related field. This course may be helpful for Actuaries by providing an introduction to financial statements and various common filings, as well as teaching basic asset pricing theories.

See salaries and explore the career path for Actuary

Software Engineer

Software Engineers design, develop, and maintain software applications. They need a strong understanding of computer science fundamentals and the ability to solve complex problems. This course may be helpful for Software Engineers by teaching basic asset pricing theories, which can be useful for building trading software.

See salaries and explore the career path for Software Engineer

Reading list

We've selected 14 books that we think will supplement your learning. Use these to develop background knowledge, enrich your coursework, and gain a deeper understanding of the topics covered in Trading Basics.

The Essays of Warren Buffett

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Provides a collection of essays by Warren Buffett. It valuable resource for students and practitioners who want to learn about Buffett's investment philosophy.

Trading Basics

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What's inside

Syllabus

Good to know

Save this course

Reviews summary

Difficult complex trading not for beginners

Activities

Career center

Reading list

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