Trading Stocks with a Millionaire: the Comprehensive Course

1. The instructor's introduction

2. Is trading stocks really riskier than the alternatives?

3. Goal of the course and emphasis on practicality

4. What to expect and what not to expect from this course

5. How is the course different from others

6. Two great questions

• What are shares and what does it mean to be a shareholder?

• Why we need a stock market and what role does it play?

• What is liquidity?

In this video, we explore:

• The reasons why companies offer stocks and the various avenues they have to raise capital

• Advantages and disadvantages of going public

• Reasons not to sell huge share to one big investor instead

• What are brokers and why do we need them?

• Can we trade without a broker?

• Brokerage account

• How to choose a broker: 8 criteria

• Broker's recommendations and offers

• What is market capitalization

• How is market capitalization calculated

• Large caps, mid caps and small caps

• Role of market capitalization

• What are stock exchanges and why do we need them

• Largest stock exchanges

• Choosing a stock exchange

• Importance of liquidity on a stock exchange

• Real life examples of less liquid stock markets and the dangers of trading on them

• What is a trade and what are the conditions for it to take place

• Stock price fluctuations and why they happen

• Auction mechanics. Buyers and sellers.

• Bids and asks: definitions

• Bid-ask spread

• Liquid and illiquid stocks: how to tell one from another looking at the chart

• Order book: definition, structure, mechanics

• Depth of Market

  
  

• Market orders and Limit orders

• Best Available Current Price principle

• Risks of using market orders with illiquid stocks

• Long and Short positions: definitions

• How longs and shorts make money

• Mechanics of short selling

• Margin trading: concept and mechanics

• Marginal account

• Risks of margin trading

• Margin call, its mechanics and consequences

• Personal perspective on margin trading

In this video, we will discuss a theoretical situation where the potential losses can exceed your total trading account balance and strategies to prevent this from happening.

• What are stop-loss orders and how they work

• Pros and cons of using stop-loss orders

• Situations when stop-loss orders might fail to be triggered

• Why knowledge of fundamentals is essential for every trading strategy

• Fundamentals: Macroeconomic, Microeconomic, Business

• Basics of fundamental trading

• What Qualitative and Quantitative analyses are

• Example of using both analyses in a semiconductor industry

• What are KPIs

• Revenue

• Growth rate

• Profit and how it's calculated

• EPS and its nuances

• P/E ratio. Company valuations.

• Cash flow. Three types of cash flow.

In this lecture we continue with the KPIs, covering the following:

• Profit Margin

• Liabilities

• Free Float

In this video, you'll learn step-by-step how to effectively analyze annual or quarterly reports. We will cover the key data points to look at and how to interpret them to make informed investment decisions.

• Understanding Analyst Coverage

• Discovering analyst coverage online

• Leveraging analyst opinions for informed decisions

• Evaluating analysts' track records

• Practical insights and real-life scenarios

• What are dividends

• Identifying dividend-paying companies

• Meeting eligibility criteria for dividends

• Monitoring four critical dates

• How to trade price fluctuations linked to dividends

Test your knowledge of company market fundamentals in this quiz. Challenge yourself with questions on dividends, analysts' coverage, KPIs and more!

• What is Technical Analysis

• History of Technical Analysis

• Three fundamental assumptions of Technical Analysis

• Criticism of Technical Analysis

• Introduction to charting

• Line and Area charts

• Candlestick charts: detailed explanation and several examples

• Bar / OHLC charts

• Timeframes

• Volume in trading

• Weak moves and strong moves

• Volume as an indicator of trend continuation or reversal

• Exhaustion moves

• Bullish and bearish signs in volume

• Price reversals

• False breakouts ("fakeouts")

• Average volume. Understanding volume in historical context

• Real-life examples

In this video, we delve into the important concept of "Up and Down on Volume" in stock trading. Understanding how price movements correlate with trading volume is essential for making informed investment decisions.

• What are Moving Averages (MA)

• Simple Moving Average (SMA)

• Exponential Moving Average (EMA)

• Real examples of MAs on a stock chart

• Most popular MA patterns: Golden Cross and Death Cross

• Moving Average Convergence/Divergence (MACD)

• Relative Strength Index (RSI)

• Criticism of reliance on MA: sample selection bias

• Why do prices move? Reminder on Supply and Demand.

• Support: definition, mechanics and real life examples

• Resistance: definition, mechanics and real life examples

• Price channels: Upward, Downward, Sideways

• How to trade support, resistance and price channels

• Trend Lines

• Uptrends and Downtrends

• Principles of drawing a trendline

• MA as support or resistance

• What if several supports/resistances contradict each another

• Comparative "strength" of trendlines

• Round Numbers 

• What are chart patterns?

• Reversal and Continuation patterns

• Trend as a pattern

• Triangle pattern with a real-life trade example

• Flag and Wedge patterns

• Cup and Handle pattern

• Why reversal trends are formed

• Distribution and Accumulation patterns

• Head and Shoulders pattern (normal and reverse)

• Double Top and Double Bottom

• Three types of Gaps: detailed analysis and why they occur

• Price patterns: bottom line

• Difference between Chart and Candlestick patterns

• Doji Candle

• Gravestone Doji and Dragonfly Doji

• Marubozu Candlestick

• Star Patterns

• Patterns as a reflection of market psychology

This is a wrap-up of Module 3.

We will apply our knowledge of technical analysis to a real-world case with META (former Facebook) stock.

In this video we will utilize our newly acquired fundamental and technical analysis knowledge to actually buy a real stock from a stock market.

IMPORTANT:

1. This is NOT a financial advice and can't be one, because these events happen in the past as you're watching it

2. I, the author of the course, use my own money for the purchase and don't encourage anyone to do the same

Challenge yourself with questions about key technical indicators, chart and candlestick patterns and more. This quiz will help you gauge your proficiency in the art of technical analysis before you move further. Good luck!

This video is an introduction to the concept of trading strategies. You will learn why having one is so important,

In this video we will discuss several factors that should be taken into consideration when choosing a trading strategy: goals, current financial situation, temperament, amount of free time and more.

• What do Warren Buffett, John Rockefeller and Peter Lynch have in common?

• Compounding: the most powerful force in the Universe

• Long-term perspective

• Several examples of the power of compounding

• Personal example of utilizing those principles

• Risk: probability and impact

• Risk Management Theory

• Risk Tolerance

• Psychology of cutting losses and taking profits

• Personal approach to cutting losses

• Mathematics of losing positions

• Practical example: C3.AI case

• Risk-Reward Ratio concept

• Upside and Downside potential

• Practical example: Ian's case

• Importance of correct position sizing

• Portfolio Diversification concept

• Stocks Correlation. Personal example.

• Five most popular types of diversification

• Pros and cons of diversification

• History of Turtle Trading

• The idea behind Turtle Trading

• Six core principles of Turtle Trading

• Criticism of Turtle Trading

• What is Daytrading

• Scalping. Three prerequisites for scalping.

• Range Trading

• Personal perspective on daytrading

• Essence of Swing Trading

• Four steps of swing trading

• Advantages and Disadvantages of Swing Trading

• Deep dive: a swing trade example

• Buying the Dip concept

• "Catching falling knives"

• Buying dips in downtrends and uptrends

• Personal opinion on Buy the Dip strategy

• Fundamental Trading and "Buy and Hold" stretegy

• Three key data classes of Fundamental Trading

• Trading corporate events

• Trading stock splits. Amazon case.

• Warning against "trading earnings"

• News Trading

• Trading macroeconomic news

• Trading corporate events

• Trading "Fading"

• Trading takeovers and acquisitions

• Understanding the mechanics of averaging down

• Practical example of averaging down

• Key conditions for successful implementation of averaging down

• Explanation of dollar cost averaging and its mechanics

• Real-life illustration: implementing dollar cost averaging with Amazon stock

• Comparing dollar cost averaging with market timing strategies

• Benefits associated with dollar cost averaging

• Appropriate situations for choosing this strategy and when it's unsuitable

• Core principles of the Buy and Hold strategy in stock trading

• Reminder on market indices

• Detailed illustration of the Buy and Hold strategy using Apple stock as a case study

• Advantages and potential drawbacks of implementing the Buy and Hold approach

• Coffee Can Portfolio: compelling real-life application of the "buy and hold" philosophy

• What are Exchange Traded Funds (ETFs)

• What are Mutual Funds

• Key differences between ETFs and Mutual Funds

• Dividend Reinvestment Plans

• Advantages and Disadvantages of both options

• Personal experience with Mutual Funds and ETFs

• Idea behind alert/signal services

• Criticism of this strategy

• Why you can lose money on winning positions with this strategy

• A better approach

• The mechanics of short squeeze strategy

• Short Interest Ratio

• Short % Of Float

• Case 1: KaloBios stock

• Case 2: GameStop (homework)

• Things to consider before trying to trade a short squeeze

• Pump and Dump: manipulative scheme you should be aware of

• Mechanics and stages of Pump and Dump

• To trade or to avoid?

• Please don't trade options

• Difference in dynamics and mechanics between stocks and options

• Psychological aspect in trading options

• Again, please don't trade options

• Trading hypes caused by fresh IPOs

• Case 1: Beyond Meat

• Case 2: Airbnb

• Case 3: Uber

• Case 4: Lyft

Test your knowledge of essential trading strategies with this mid-module quiz that covers crucial concepts such as compounding, risk management, risk/reward ratio, cutting losses, position sizing, and diversification.