Investors who watched their portfolios, pension funds, and mutual funds dwindle, with no ability to protect themselves, are turning in masses to stock market education providers to up their trading IQ.
Individual investors who had previously invested their money with financial organizations like hedge funds and mutual funds are increasingly looking to manage their own money. Investors who are looking to manage their own investments can take courses on the stock market to become traders themselves.
The curriculum of investing courses for beginning traders often features topics like stocks, options, and other trading securities. By learning simple techniques such as implementing stop-loss orders and short selling, even novice investors can learn how to better manage their portfolio. A stop-loss order is a security order to sell when it reaches a specified price, intended to limit potential loss on a position. Short selling is the exact opposite position as buying, where an investor profits when the price of an asset falls.
Investment courses can help individuals develop commonly used trading strategies like portfolio diversification. Traders benefit from diversification because it reduces a portfolio’s unsystemic risk.
For advanced traders, learning how to employ high-level trading techniques like using margin and multiple leg options strategies can augment their trading proficiency. Margin works to leverage up returns by borrowing funds from a brokerage to control a greater amount of the security you are buying or selling. Multiple leg options plays, like Straddles and Iron Condors, involves several positions rather than single call and put options positions. These are just a few of the advanced trading strategies you may be exposed to in investor education courses.
Trading courses can vary, depending on the market and security type. While stocks are the primary asset class investors are familiar with, they represent just one type of security that is commonly traded. Other asset classes include fixed income, commodities, and currencies. In addition to stocks, financial securities include more sophisticated instruments like options, futures, forwards, swaps, and other derivatives.
The benefits of taking investing courses are many. If you have money in a pension fund, mutual fund, brokerage account, or other investment vehicle, investing courses will better prepare you to manage your accounts. They can reveal various trading strategies and techniques that can help you weather any type of market.
While there is no secret formula or investor education curriculum that can teach you trading strategies with zero risk, they can increase your ability to manage the market’s ups and downs.
Matt Kaldor is a senior content writer with Better Trades, the nation’s No. 1 stock market education company.