Course Content
Introduction
The stock market is a marketplace where shares of publicly listed companies are bought and sold. It plays a central role in the modern economy, acting as a bridge between businesses that need capital and investors who have money to invest. The origins of the stock market trace back to the early 1600s, when the Dutch East India Company issued the first shares on the Amsterdam Stock Exchange. This allowed the company to raise money from the public to fund its trade ventures, in return for a share of the profits. Over time, this concept evolved, and today, stock markets exist all over the world, with major exchanges like the New York Stock Exchange (NYSE), NASDAQ, and London Stock Exchange facilitating trillions of dollars in trade. At its core, the stock market enables businesses to grow. By offering shares to the public through a process called an Initial Public Offering (IPO), companies can raise large amounts of money to expand operations, invest in research, or develop new products—without having to rely solely on banks or private lenders. In return, investors get the opportunity to share in the company’s success through rising share prices and dividends. Investing in the stock market can be a powerful way to build wealth over time. Wise investments in strong companies can generate solid returns, especially when held for the long term. Many individuals have grown their savings substantially by investing in companies that have thrived. However, it’s important to remember that the stock market carries risks. Prices can go up, but they can also go down—sometimes sharply. Economic downturns, company mismanagement, or shifts in the global market can all lead to losses. For beginners, it's essential to approach investing with caution, avoid chasing “get rich quick” schemes, and take the time to understand what you're investing in. In short, the stock market is a powerful tool for economic growth and personal financial development—but like all tools, it must be used wisely.
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Introduction
Stock Markets Around The World
Listing On A Stock Market
How Stocks are Bought and Sold
Trade Date vs Settlement Date, What is T + 2?
What Is A Stock Market Index?
ETF’s and Index Funds
Fundamental Analysis
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Fundamental Analysis Introduction
Understanding Revenue and Profit
Earnings Per Share and PE Ratio
Understanding the Balance Sheet
Understanding Cashflow
Dividends – How Investors Earn Income From Their Shares
What Causes Stock Prices To Rise And Fall
Understanding Market Capitalization
Technical Analysis
Along with Fundamental Analysis, Investors increasingly rely on Technical Analysis to decide whether to buy or sell a stock. Here we will explore the main techniques.
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Introduction to Technical Analysis
How To Read A Price Chart – The Basics
Understanding Support and Resistance Levels
Identifying Trends and Drawing Trendlines
Understanding Moving Averages
Introduction to Momentum Indicators
Chart Patterns – Spotting Setups in the Market
Volume – The Power Behind a Price Movement
Investing Safely and Profitably
How do professionals invest safely and profitably? Some key concepts such as position sizing and stop losses.
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How To Place Trades And Manage Risk
Using A Trailing Stop To Protect Profits and Limit Loss
Diversification and Portfolio Management
Taking Profits
Common Investor Mistakes And How To Avoid Them
A Quick Word On Taxes
Summary and Beginner’s Checklist
10 Must Read Books for Investors and Traders
Beginners guide to investing in the Stock Market

Common Investor Mistakes And How To Avoid Them

 

Even experienced investors make mistakes, but beginners are especially prone to emotional decisions, overconfidence, and a lack of planning.

 

This section covers the most common investing mistakes — and how you can steer clear of them.

 

 

1. Investing Without a Plan

 

Jumping into the market without a clear strategy is like sailing without a map.

 

Avoid it by:

  • Setting clear goals (growth, income, retirement, etc.)

  • Understanding your risk tolerance

  • Knowing your time horizon

  • Creating a simple plan or strategy to follow

 

2. Chasing Hot Stocks or Hype

 

It’s tempting to jump on the latest trending stock (especially on social media), but buying into hype often means:

  • You’re late to the party

  • The price is overinflated

  • The risk is higher than you realize

 

Avoid it by:
Doing your own research and sticking to companies or ETFs you understand.

 

 

3. Panic Selling in Market Dips

 

Markets naturally go up and down. Many beginners sell at a loss during dips because they fear further decline.

 

Avoid it by:

  • Knowing the difference between volatility and risk

  • Staying focused on the long-term picture

  • Keeping cash aside so you’re not forced to sell in a downturn

 

 

4. Lack of Diversification

 

Putting all your money into one stock (or one sector) exposes you to huge risk. If it goes badly, your portfolio suffers.

 

Avoid it by:

  • Spreading your investments across different sectors, assets, and regions

  • Using ETFs or index funds to diversify instantly

 

 

5. Ignoring Risk Management

 

Risk is unavoidable, but it can be managed. Many beginners risk too much on a single trade or ignore stop-losses altogether.

 

Avoid it by:

  • Using position sizing and stop-loss orders

  • Never investing more than you’re willing to lose

  • Always assessing risk-to-reward before entering

 

 

6. Trying to Time the Market

 

Trying to buy the bottom and sell the top sounds good — but it’s extremely difficult, even for pros.

 

Avoid it by:

  • Using a dollar-cost averaging strategy (investing regularly over time)

  • Focusing on time in the market, not perfect timing

 

 

7. Being Too Active or Too Passive

 

Some investors trade constantly out of boredom or fear of missing out. Others invest and forget completely.

 

Avoid it by:

  • Reviewing your portfolio periodically, not obsessively

  • Avoiding overtrading and unnecessary fees

  • Rebalancing as needed — not reacting to every news headline

 

 

8. Overconfidence After a Win

 

Early success can make beginners feel invincible — leading to bigger risks, overtrading, and poor decisions.

 

Avoid it by:

  • Staying humble

  • Sticking to your strategy

  • Treating each trade or investment with discipline

 

 

9. Not Tracking Performance

 

If you’re not measuring your results, you won’t know what’s working (or not).

 

Avoid it by:

  • Keeping a simple investing journal or spreadsheet

  • Recording entries, exits, reasons, and outcomes

  • Learning from both wins and losses

 

 

Summary – Mistakes to Watch Out For

 

Mistake How to Avoid
No plan or strategy Set clear goals and create a basic investing plan
Following hype or hot tips Do your own research and avoid emotional trades
Panic selling during dips Focus on the long term, not short-term noise
Not diversifying Spread risk across sectors and assets
Ignoring risk management Use stop-losses and proper position sizing
Trying to time the market Invest regularly and think long term
Overtrading or under-managing Balance review and action without overreacting
Getting overconfident Stay disciplined and follow your plan
Not reviewing performance Track and learn from your results

 

Mistakes are part of the journey — but by learning about them early, you can avoid costly errors and invest with more confidence and control.

 

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Stock Market Course