Trading Basics
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Trading Basics
This course is part of Trading Strategies in Emerging Markets Specialization
Instructor: Ramabhadran Thirumalai
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There are 4 modules in this course
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.
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.
What's included
12 videos1 reading1 assignment1 discussion prompt
12 videos•Total 68 minutes
- Introduction•2 minutes
- 1. Introduction to accounting•5 minutes
- 2. The balance sheet•4 minutes
- 3. Assets•7 minutes
- 4. Liabilities•5 minutes
- 5. Shareholders’ Equity•5 minutes
- 6. Income Statement•5 minutes
- 7. Expenses 1•8 minutes
- 8. Expenses 2•7 minutes
- 9. Statement of Cash Flows•5 minutes
- 10. Cash Flows from Operations•10 minutes
- 11. Cash Flows from Investments and Financing•7 minutes
1 reading•Total 20 minutes
- 10 Things to Know About Every Cash Flow Statement•20 minutes
1 assignment•Total 45 minutes
- Quiz 1•45 minutes
1 discussion prompt•Total 10 minutes
- Manchester United•10 minutes
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.
What's included
5 videos1 reading1 assignment
5 videos•Total 35 minutes
- 1. Financial Statement Analysis•4 minutes
- 2. Profitability ratios•7 minutes
- 3. Activity Ratios•10 minutes
- 4. Solvency and Liquidity Ratios•8 minutes
- 5. DuPont Identity•6 minutes
1 reading•Total 20 minutes
- What are the limitations of ratio analysis?•20 minutes
1 assignment•Total 45 minutes
- Quiz 2•45 minutes
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.
What's included
9 videos1 reading1 assignment1 discussion prompt
9 videos•Total 53 minutes
- 1. Expected returns and risk•6 minutes
- 2. Diversification•6 minutes
- 3. CAPM•5 minutes
- 4. CAPM Beta•6 minutes
- 5. Multifactor Models•6 minutes
- 6. APT•6 minutes
- 7. Arbitrage•7 minutes
- 8. Arbitrage-Free Price•6 minutes
- 9. Risk Factors•5 minutes
1 reading•Total 20 minutes
- The 15-Stock Diversification Myth•20 minutes
1 assignment•Total 30 minutes
- Quiz 3•30 minutes
1 discussion prompt•Total 10 minutes
- Asset pricing models•10 minutes
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.
What's included
11 videos1 reading1 assignment1 discussion prompt
11 videos•Total 66 minutes
- 1. Market and Limit Orders•5 minutes
- 2. Limit Order Book•7 minutes
- 3. More Limit Order Book•7 minutes
- 4. Limit Price Placement•5 minutes
- 5. Stop-Loss Orders•5 minutes
- 6. Short-Selling•4 minutes
- 7. Other Order Instructions•8 minutes
- 8. Liquidity•3 minutes
- 9. Transaction Costs•7 minutes
- 10. Implicit Transaction Costs•9 minutes
- 11. Implementation Shortfall•6 minutes
1 reading•Total 20 minutes
- Is the market microstructure of stock markets important?•20 minutes
1 assignment•Total 45 minutes
- Quiz 4•45 minutes
1 discussion prompt•Total 10 minutes
- Liquidity•10 minutes
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Reviewed on Aug 2, 2020
Good for beginner but would recommend to have a bit knowledge about trading as it will be easy to grasp, Also WEEK 3 will be very challenging as its just MATH
Reviewed on Oct 30, 2020
On the three it got i little bit complicated because it was a lack of information about a spetific topic (The CAPM) But the rest was really great. Thanks
Reviewed on Jul 25, 2020
Course structure is good, it covers almost everything but if you are looking for an understanding its not for you. They have a script and its all bookish knowledge. so all the best!
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