Sharenet College Guide to Profitable Stock Market Investing
What does the course cover?
The course consists of 25 modules, beginning with investment basics and moving through to intermediate and advanced topics.
INTRODUCTION TO TRADING AND INVESTING
Module 1 - Introduction to Investing on the Stock Exchange
Investing provides an exciting alternative to the traditional way of making money - the first module shows why.
Module 2 - The Johannesburg Stock Exchange
You're going to need some background to the JSE and how companies are listed. How does investing on the stock market benefit you? This module answers this question and more.
Module 3 - The Listed Company
If you decide to invest in the shares of a company, it is important that you know what a company actually is: how it is formed, how it functions and how you play a role. Discover what rights you have as a shareholder:
Module 4 - Investment Principles
It is important that you know your investment goals before you enter the markets, and then put into practice solid investment principles that will ensure success.
SELECTING, TRADING & MANAGING SHARES
Module 5 - Share Basics
You need to know some basics before you can start investing. Learn some important terms, how accurate share prices are and when and why they move up and down.
Module 6 - Introduction to Financial Ratios
Financial ratios are historical in nature and are generally a good indicator of how a company has performed in the past few years. Develop a clearer understanding by comparing ratios to previous years and with similar companies.
Module 7 - Selecting a Shortlist of Shares
Once you have established your investment objectives, the next step is deciding what shares you will select to invest in. Various sources will provide you with the necessary information in order to make this decision.
Module 8 - Share Selection Worksheets
Complete these three easy to use worksheets as a basis for share selection and how to monitor your portfolio.
Module 9 - Trading Shares on the JSE
You've learnt the basics and now need the hard facts. How do you open a stockbroker's account? How do you purchase and sell a share?
Module 10 - Money Management for Share Trading
There are various risks involved when you decide to invest your money. You need a plan of action and a well-defined investment and money management strategy that will help reduce these risks and maximise your portfolio returns over a long period of time.
Module 11 - Introduction to Fundamental Analysis
Before you become a shareholder in a particular company, it is necessary that you do careful research about the actual company and its future potential. Learn how to analyse a a company's financial statements so that you can decide whether it will be a worthwhile investment.
Module 12 - Understanding the Financial Accounts
Before you buy shares in a particular company, it is necessary that you know how to analyse their financial accounts. This will give you, as a potential investor, a good understanding of the company and the direction they are taking.
Module 13 - Understanding the Annual Reports
Discover how to analyse a company's annual report, and pick out characteristics of a successful or failing company to help you select winning shares (and avoid losers) for your portfolio.
Module 14 - Corporate Restructuring
Companies are constantly looking for ways to add value to shareholders. Acquiring companies and then selling them off can make the enlarged company more valuable. However, this corporate restructuring comes with its own set of problems which the investor needs to be aware of.
Module 15 - Introduction to Technical Analysis
Technical analysis is based on the assumption that all information pertinent to a share will be immediately factored into the share price, so there is no need to do further research other than examine share charts. This module will equip you to understand charting and make use of technical analysis techniques.
UNDERSTANDING THE MARKET & ECONOMY
Module 16 - Tracking the Market
You need to be on top of your game when it comes to tracking the stock market. The best way to determine the general direction of the market is to follow and understand what the market is doing every day.
Module 17 - Basic Economic Theory
Every business functions in an economic environment. As an investor, you need to have a good understanding of the economy before you consider investing your funds in a listed company.
Module 18 - Economic and Market Statistics
This module details JSE market and economic statistics and explains how to understand and use them to your investment advantage.
Module 19 - Unit Trusts and Exchange Traded Products (ETPs)
Learn about unit trusts and ETPs, which are essentially collective investments that enable you to pool your money with other investors who have similar investment objectives, to gain exposure to a greater variety of instruments at a lower cost than if you invested directly in them.
Module 20 - Forwards and Futures
This module looks at the more advanced topic of forward and futures contracts. They belong to a group of financial instruments known as derivatives: assets whose value is derived from the movement in price of an underlying asset or index.
Module 21 - Options and Warrants
In this module we focus on options for the purchase or sale of financial assets, such as stocks. We also look at the characteristics and advantages of warrants, and explain the trading of options and warrants in South Africa.
Module 22 - Contracts for Difference (CFDs) and Financial Spread Betting (FSB)
Another advanced topic is that of CFDs and FSB. This module explains the nature of CFDs and FSB, appropriate trading strategies, advantages and disadvantages, and costs of trading.
Module 23 - Foreign Exchange (Forex) Trading
The range of investment instruments explored in this course would not be complete without a module on foreign exchange trading – a very popular yet highly volatile type of investment. Although it appears very straightforward, especially to a new investor, foreign exchange trading is not for the faint hearted, and you need to be well informed before you set out.
PERSONAL INVESTMENT PLANNING
Module 24 - Tax and Your Investments
Investors and active traders need to be aware of various income tax considerations when buying and selling shares. Include this process in your personal planning phase.
Module 25 - Winning Advice from Top Traders and Investors
"A successful trader is rational, analytical, able to control emotions, practical and profit orientated." Find out who said this and other inspirational quotes, and collect valuable tips.