Trading Basics

This course is part of Trading Strategies in Emerging Markets Specialization

Instructor: Ramabhadran Thirumalai

209,357 already enrolled

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4 modules

Gain insight into a topic and learn the fundamentals.

1,818 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.

1,818 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 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

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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Instructor

Instructor ratings

(345 ratings)

Ramabhadran Thirumalai

Indian School of Business

7 Courses 260,183 learners

Offered by

Indian School of Business

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Showing 3 of 1818

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 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

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To access the course materials, assignments and to earn a Certificate, you will need to purchase the Certificate experience when you enroll in a course. You can try a Free Trial instead, or apply for Financial Aid. The course may offer 'Full Course, No Certificate' instead. This option lets you see all course materials, submit required assessments, and get a final grade. This also means that you will not be able to purchase a Certificate experience.

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