Stock market trading empowers individuals to acquire relevant knowledge and skills.  It exposes learners to relevant economic enviroments and their behaviours combined with practical application and experience of this theoretical foundation for market trading.

1. Master basic theory underpinning the behaviour of financial and stock markets.

2. Understand monetary and fiscal policies and the impact on financial and stock markets.

3. Demonstrate the ability to perform and integrate important trading procedures competently (practical competence), understand theoretical basis for these actions (foundational competence), and the ability to reflect on financial market behaviour (reflexive competence).

4. Apply computer skills to use a trading tool for the financial markets correctly.

5. Trade stock markets effectively.

THE PROFIT COURSE

Step 1: THE PROFIT COURSE

Investment in the Stock Market:

  • The functions of the JSE are investigated.
  • The concept of a share is defined and explained including share price.
  • Types of shares are identified and compared to dividends.
  • The trading rules are explained.
  • The steps to invest in the stock market are explained.
  • Types of investment are identified and compared.
  • Stock market sectors are identified and compared.
  • Types of stock market investors are identified and compared.
  • Types of income traders are identified.
  • The term stockbroker is defined.

Online Trading:

  • The term online trading is defined and the benefits are discussed.
  • The market is analysed using both fundamental and technical analyses.
  • Various types of indicators are identified and their purposes explained.
  • Charts and trading software are explained.
  • Trading the stock market using major candlestick signals is explained.
  • Types of moving averages are identified and each explained.
  • The function of the Moving Average Convergence Divergence is described.

Trading Process:

  • A watch list is created followed by a market analysis.
  • Risk and profits are managed.
  • An exit strategy is planned including money management.
  • Support and resistance factors are used to enable decision taking.
  • Stock volume is defined and explained in terms of trend lines.

Stock Market Concepts:

  • Concepts such as earnings, earning season, commodities, price movement, ALSI Future, earnings announcements, bull market, and bear market are defined and explain with examples.
  • The notion of diversification of the stock market is debated.
  • Factors effecting currency is identified and explained.
  • The causes of fluctuation in market price is interrogated with examples.
  • Price/ Earning ratio is defined and explained with examples.
  • Stock market terminologies such as dividends, key economy releases, stocks and liquidity, daily volumes, share trading, spot prices, ticker etc. are defined and explained with examples.

Reading the Stock Market:

• The stages of the stock market identified and described.

• Stock charts are read correctly.

• Support and resistance is identified on a stock chart.

• The supply and demand key is used to describe movement of stock prices.

• The process related to picking stocks is described and applied.

• Main influences on stock prizes are identified and explained.

• Market indexes are analysed and movement explained.

• The process to trade on QC Pro is described.

STOCK MARKET TRADING INSTRUMENT

Step 2: STOCK MARKET TRADING INSTRUMENT

 

  • Clients login to the QuickTrade website

QuickStart

  • QuickTrade Website Introduction
  • Logging in to the web based platform
  • The trading platform screen
  • Add a share to the watch list
  • View the chart of a share on your watch list
  • View the time frame of your chart
  • View the Price at a given time on a chart
  • Traders Trading Checklist
  • How to open Long/Short Trades on Protrader

Contract for Difference (CFD):

  • The concept: gearing of difference is explained.
  • Long and short entries are identified and applied.
  • The use of different types of graphs are compared and used to explain trends.

The trading software:

  • The environment tab is opened to customised workspace.
  • The terminal tab is opened to select a variety of windows.
  • The account tab is opened to draw all types of account information and graphs.
  • The tools tab is opened to view various options.
  • The view tab is opened to manage the page.

The charting window:

  • The watch list is cleared.
  • Symbols are added to the watch list.
  • A watch list is compiled.
  • Symbols on the watch list is selected to view individual charts
  • Data and time frame are changed on the charting window.
  • Trend lines are drawn and extended correctly.
  • Indicators and oscillators are added and used correctly.
  • A Bollinger band, Stochastic oscillator, Williams %R, relative strengths index, moving average convergence/divergence and moving averages are set to indicate variations in market movement.
  • Oscillators and indicators are managed.

Grid view:

  • The grid view is set up to allow multiple time views.
  • Information on the account is viewed.
  • Order entry is used to view available funds, margin available, initial margin and to calculate risks.
  • Order types such as market order, limit order, stop order, time in force, stop loss and take profit are compared and explained.
  • Long and short entries are compared.
  • Methods to close an open position are explained.
  • The use of the blotter is explained and demonstrated.
  • The market depth is considered using available data.

EXPERIENTIAL LEARNING

Step 3: EXPERIENTIAL LEARNING

Supervised stock market trading:

  • An informed knowledge of the stock market trading environment and terminologies used.
  • Sound understanding of the trading instrument.
  • Understanding of entry steps to the trading software.
  • Understanding how to set up a watch list and the charting window.
  • Managing the grid view to view information, make order entries and know how to do stock trading.

Independent stock market trading:

  • Understanding and using terminologies associated with stock market trading correctly.
  • Understanding how to use the trading instrument effectively.
  • Understanding the steps to be taken to operate the trading software.
  • Setting up a watch list and opening the charting window.
  • Managing the grid view to view information, making order entries and do stock trading successfully.

Project:

  • A project related to stock market trading processes is selected, motivated and planned. 
  • Relevant data is gathered from practical experience with stock market trading processes.
  • A report is written reflecting a critical engagement with stock market trading processes followed. 
  • The project is evaluated, lessons learned indicated and reflected on in terms of value for stock market training practices. 
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Extra Resources

The Streetwise Investor Audio Book

  • Prologue
  • Setting Financial Goals
  • The Salary Treadmill
  • Financial Independence
  • Why Shares Part 1
  • Why Shares Part 2
  • Institutions and Stockbrokers
  • Property
  • Other Types of Investments
  • Achieving Financial Independence
  • The Art of Share Selection and Transaction Timing Part 1
  • The Art of Share Selection and Transaction Timing Part 2
  • The Art of Share Selection and Transaction Timing Part 3
  • The Art of Share Selection and Transaction Timing Part 4

 

Technical Analysis

  • Technical Analysis and the Dow Theory
  • Charting Basics
  • Trend Concepts
  • Reversal and Continuation Patterns
  • Volume and Open Interest