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

How To Read A Price Chart – The Basics

 

Before diving into technical indicators and patterns, it’s important to understand the price charts themselves — how they’re structured, what they show, and how to read them.

 

Most stock charts show how a stock’s price has moved over time — and are usually viewed over different timeframes, such as:

 

  • 1 day

  • 1 week

  • 3 months

  • 1 year

  • 5 years
    You can zoom in for short-term trading or zoom out for long-term trends.

 

 

1. Line Chart – The Simplest View

 

A line chart connects one price point per period — usually the closing price — into a continuous line.

 

Line charts are great for:

  • A quick overview of general trend (upward/downward/sideways)

  • Long-term investors who don’t need to see short-term movements

 

🔹 Easy to read
🔹 Clean and uncluttered
🔹 Not great for detailed short-term analysis

 

2. Candlestick Chart – A Detailed Look at Price Action

 

Candlestick charts are the most popular chart type used in technical analysis.
Each “candle” represents price action for a specific period (e.g. 1 day, 1 hour, etc.).

 

Each candlestick shows four key prices:

  • Open: Price at the start of the period

  • Close: Price at the end of the period

  • High: The highest price during the period

  • Low: The lowest price during the period

 

 

Candlestick Anatomy

 

  • Body: The thick middle part (shows open to close)

  • Wicks (or Shadows): Thin lines above and below (show highs and lows)

 

Candle Type What It Means
🟩 Green Candle Close > Open (Price went up)
🟥 Red Candle Close < Open (Price went down)

 

Candlestick charts are useful for spotting:

  • Trends (up/down)

  • Reversals

  • Patterns (which we’ll cover later)

 

 

3. Volume – Measuring Trading Activity

 

Below most price charts, you’ll see volume bars — they show how many shares were traded during each time period.

  • High volume = Lots of trading (strong interest, possibly important news)
  • Low volume = Little trading (low interest or quiet period)

 

Volume helps confirm:

  • Whether a price move is strong or weak

  • If a breakout or reversal is likely to be real

 

 

Why This Matters

 

Understanding the basic structure of price charts helps you:

  • Read trends and price direction

  • Spot patterns and trade signals

  • Interpret technical indicators accurately

  • Make better decisions about when to buy or sell

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Stock Market Course