OUR KNOWLEDGE BASE
We keep saying "knowledge is power". We have structured our on-line courses to give you access to lots of knowledge so you ultimately build lots of power. We take you from the basics, show you the essentials, train you on the masters and then teach you how to put it all together in a comprehensive trading plan.
Fundamental analysis reveals the overall economic and valuation context within which asset prices fluctuate. Macro-economic analysis is important in order to understand the big-picture investment climate. Micro-economic analysis focuses on the relationship between “fair value” and actual market prices as they result from the market’s evaluation of both current and future prospects of a company or a sector. Our fundamental analysis topics will not only teach you how to look at all these things but more importantly how to reconcile fundamental developments with actual market behavior for a better chance at making fruitful investment decisions.
Topics in the fundamental analysis section include macro and micro economic analysis as well as fundamental stock and bond valuation.
Learn about the time value of money, bond valuation techniques and bond price risk.
Learn about stock valuation models and techniques.
Learn about leading, coincidental and lagging economic indicators and how they behave throughout the economic cycle. Understand how asset classes out or underpeform at various points in the economic cycle and how that shapes the relative performance of regions, countries, sectors and industries.
Learn about firm-specific factors and how they influence individual stock prices and individual stock volatility.
Analysis of market behavior should be central to any trading plan. Indeed, while fundamentals play a role in understanding the intrinsic value of assets, listening to the market is important for at least two reasons. First off, price action leads underlying fundamentals; if you want edge in the complex system called financial markets, you can’t depend solely on the lagging component when you make forecasts. Secondly, while fundamentals tell you what to do, they do not tell you when to do it. If your approach is first centered on managing risk – like it should be – then timing your decisions is as important or even more important than the decisions themselves. If you want to fine-tune the timing of your decisions you must look at charts.
Topics related to analysis of market behavior include philosophy or rationale, the Dow theory, basic trend analysis, bar and candle patterns, chart patterns, quantitative indicators, Elliott Wave Principle, sentiment indicators and even inter-market analysis and relative strength.
Learn about the theoretical foundation of analysis of market behavior – a.k.a. technical analysis.
Learn about the Dow Theory, its key tenets and its seminal role in the field of technical analysis.
Learn about trend direction, support, resistance, trendlines, channel lines, fan lines, gann lines, speed lines, price gaps.
Learn about the most common bar and candlestick patterns.
Learn about the most popular reversal and continuation chart patterns and how to identify them and validate them.
Learn how to categorize and use the available quantitative – a.k.a technical – indicators.
Learn about sentiment measures and how to “read” them.
Learn about the Elliott Wave Principle and how it adds extra perspective to your analytical work.
Learn why relative strength analysis is important and what techniques you can use to assess relative strength.
A derivative is a security or financial instrument whose value is reliant upon – or derived from – an underlying asset or group of assets — a benchmark. The derivative itself is a contract between two or more parties, and the derivative derives its price from fluctuations in the underlying asset. Common underlying assets for derivatives are government bonds (treasuries), commodities, currencies, interest rates, and major stock indices.
Topics related to derivatives products include pricing and valuation of forward-based and option-based derivatives, implied volatility, option sensitivities and common directional or volatility option strategies.
Understand the existing types of forward-based derivatives, how they are priced and how and where they are traded.
Understand the existing types of options, their pay-offs, the variables impacting their pricing and how they are traded. Understand the difference between intrinsic value and time value and why and how historical volatility is different from implied volatility.
Understand the various directional and volatility options strategies and how to combine them with cash or forward / futures positions.
BUILDING A TRADING PLAN
Trading is a competitive game whose outcome is decided primarily by player’s ability to manage risk. All and any body of knowledge you will have amassed in your entire life with respect to economic analysis, market behavior or available product base means absolutely nothing if you cannot translate it into a set of actionable instructions to arrive at buying low and selling high – or buying high and selling higher for that matter.
Topics in this section are money management principles, building a trading plan, building a trading system, trader psychology and discipline.
Money management principles are the building foundation of any trading plan: capital preservation and appreciation are simply not possible without them.
Trading is a highly competitive “game” and achieving consistent success requires, amongst other things, sound planning. A trading plan will define situational plays, how to approach them, how much to trade and how and where to enter the market, or how and where to take profits – or accept a stop loss for that matter.
Understand the advantages and the problems with automated trading systems and trading algorithms. Learn how to properly build and test a trading system and how to evaluate its overall efficiency in live trading.
Elements of trading psychology and how to enforce your trading plan in good times and bad.