Introduction

Learn how stock and options trading works along with the important basic definitions. Explore the professional content and get ready to start trading! Learn everything about technical analysis, options, bonds, and fundamental analysis!

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The stock exchange

Securities

Banks, brokers, brokerage firms

Fundamental and technical analysis

Risk and diversification

The value of an investment depends to a great extent on the return and the risk associated with the given investment. If investors think rationally, they will expect higher returns for riskier investments. Thus, investments with higher risk must offer larger returns. This return is the risk premium.

According to the modern portfolio theory, investors should divide their money – designated for investments – to minimize risk. This practice is called diversification. The smaller the correlation between the movements of two shares, the smaller the overall risk of the portfolio. On the stock exchange, diversification can be achieved geographically (between shares from different countries), or industrially. It is also possible to diversify a portfolio with shares of export-oriented companies or rather with shares of companies depending on their domestic market. The risk of a perfectly diversified portfolio equals to the country risk of the given market. Hence, the ultimate goal of collecting risky shares is to make the overall portfolio risk smaller than the individual risks of the different shares in the portfolio.

Risk and diversification

Risk aversion is an ordinary human behaviour. However, it usually restricts the investor from possible large gains on the market. When someone wishes to earn more money on the exchange market, risk aversion and profit orientation narrow down the possibilities, because everyone intends to maximise return and minimise risks. This risk aversion indicates that (because of the short-term thinking) investments with high long-term returns are not considered, if their short-term return is volatile. It is right to say that the market is driven by the combination of hunger for profit and loss avoidance.

Earnings

Initial Public Offering (IPO)

Online trading

Market news

Online Trading Course - for Beginners!

  • Specially made for beginners
  • From Forex to the Option trading
  • Immediate techniques

Are you still using a Demo account? Are you afraid to start live trading? We have good news for you!

Successful trading can be learnt! Here is what you should do: learn it.

The Huntraders E-Learning system is based on more than 10 years of trading experience to provide practical information for our members. The 8 topics have been thematically structured to offer the information and knowledge necessary for all traders. The course gives an inevitable knowledge for successful trading to start making profit.

If you are a beginner, this is the first step.

Trading Guides

Indicators

25 indicators. Find the indicators matching Your strategy and learn their trading signals through examples!

Candlestick patterns

88 candlestick patterns. Increase Your profit by recognising candlestick patterns and analysing the market with their help.

Chart patterns

31 chart patterns. Recognise triangles and breakouts, calculate the target prices defined by them.

Option strategies

49 option strategies. Apply the strategies that best suit your purposes and learn how to calculate their potential profit and risk through examples.

The modules of trading course

Everything You need to know about stock and option trading.

Download the trading training materials for beginners here: