Investment Psychology and Trading -Virtual
In this class, you will learn about the investment industry, financial market psychology, and different types of trading. You will come to understand why some traders are successful, but most aren’t. You will also learn how to identify important market trends, price levels, and momentum extremes. Upon completion of the course, you will have acquired a deep understanding of how investment and trading psychology affect the markets. Only a small percentage of traders consistently profit. You will learn to how become one of them. This is a virtual course with 5 half-day sessions during trading hours.
Module 1: Wall Street Overview
- History and the Evolution of the New York Stock Exchange (NYSE)
- The Buy-side
- Portfolio Managers
- Pension Plans
- Registered Investment Advisors
- Hedge Funds
- Mutual Funds
- The Sell-side
- Investment Bankers
- Sales Traders and Market Makers
- Analysts (Buy-side and Sell-side)
Module 2: Investment Psychology
- People haven’t evolved in a way that is conducive to successful investment management.
- Fear causes traders and investors to make mistakes.
- Many strategies and systems are successful when paper trading, but if actual capital is committed it can evoke emotional responses that lead to losses.
- Sentiment as a contrarian indicator.
Module 3: Investment Psychology and Technical Analysis
- Investment psychology as manifested on charts.
- Trends
- Momentum
- Buyer’s remorse and seller’s remorse can cause support and resistance to form.
- The same patterns appear on charts of different classes of securities.
- Fractal Nature of Charts
- Historical Charts
Module 4: Broad Market Analysis
- Sector and Industry Analysis
- Exchange Traded Funds (ETFs)
- Relative Strength
- Commodities
- Cryptocurrencies
- Currencies
- Interest Rates
- Credit Markets
Module 5: Building Trading Models and Strategies
- Position Sizing
- Exit Strategies
- Stop-out Strategies
- Client Mandates
- Tools & Rules
- Setups
- Triggers
- Exit Strategies for Profits
- Exit Strategies for Losses
- Quantitative Trading Models
Module Review and Applications
- Module review and real time applications
- Test / Quiz