Trading Basics

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Trading Basics

This course is part of Trading Strategies in Emerging Markets Specialization

Instructor: Ramabhadran Thirumalai

212,147 already enrolled

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4 modules

Gain insight into a topic and learn the fundamentals.

1,825 reviews

Beginner level

No prior experience required

Flexible schedule

8 hours to complete

Learn at your own pace

84%

Most learners liked this course

4 modules

Gain insight into a topic and learn the fundamentals.

1,825 reviews

Beginner level

No prior experience required

Flexible schedule

8 hours to complete

Learn at your own pace

84%

Most learners liked this course

Skills you'll gain

Details to know

Shareable certificate

Add to your LinkedIn profile

Assessments

4 assignments

Taught in English

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This course is part of the Trading Strategies in Emerging Markets Specialization

When you enroll in this course, you'll also be enrolled in this Specialization.

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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 videosTotal 68 minutes

Introduction2 minutes
1. Introduction to accounting5 minutes
2. The balance sheet4 minutes
3. Assets7 minutes
4. Liabilities5 minutes
5. Shareholders’ Equity5 minutes
6. Income Statement5 minutes
7. Expenses 18 minutes
8. Expenses 27 minutes
9. Statement of Cash Flows5 minutes
10. Cash Flows from Operations10 minutes
11. Cash Flows from Investments and Financing7 minutes

1 readingTotal 20 minutes

10 Things to Know About Every Cash Flow Statement20 minutes

1 assignmentTotal 45 minutes

Quiz 145 minutes

1 discussion promptTotal 10 minutes

Manchester United10 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

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 videosTotal 53 minutes

1. Expected returns and risk6 minutes
2. Diversification6 minutes
3. CAPM5 minutes
4. CAPM Beta6 minutes
5. Multifactor Models6 minutes
6. APT6 minutes
7. Arbitrage7 minutes
8. Arbitrage-Free Price6 minutes
9. Risk Factors5 minutes

1 readingTotal 20 minutes

The 15-Stock Diversification Myth20 minutes

1 assignmentTotal 30 minutes

Quiz 330 minutes

1 discussion promptTotal 10 minutes

Asset pricing models10 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 videosTotal 66 minutes

1. Market and Limit Orders5 minutes
2. Limit Order Book7 minutes
3. More Limit Order Book7 minutes
4. Limit Price Placement5 minutes
5. Stop-Loss Orders5 minutes
6. Short-Selling4 minutes
7. Other Order Instructions8 minutes
8. Liquidity3 minutes
9. Transaction Costs7 minutes
10. Implicit Transaction Costs9 minutes
11. Implementation Shortfall6 minutes

1 readingTotal 20 minutes

Is the market microstructure of stock markets important?20 minutes

1 assignmentTotal 45 minutes

Quiz 445 minutes

1 discussion promptTotal 10 minutes

Liquidity10 minutes

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Instructor

Instructor ratings

(346 ratings)

Ramabhadran Thirumalai

Indian School of Business

7 Courses263,073 learners

Offered by

Indian School of Business

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Reviewed on Jul 24, 2021

The course is great and well structured. The only thing that might be lacking is it focuses on long term investment by analyzing balance sheet and not on the short term trading.

Reviewed on Apr 15, 2020

Week 1,2 and 4 very well explained Week 3 had certain areas that could have been explained better such as the weights found in CAPM using solver

Reviewed on Aug 27, 2019

Good introduction to the basics of trading. The skills covered in this course are prerequisites for understanding the trading environment.

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