Short-term Stock Trading

Years ago, trading stocks was a specialist practice. Now, it is accessible to all. With our short-term stock trading course, you can get started today.
0/5 Rating
34 Lessons
Beginner
1 hour 56 mins
Written by: Harry Atkins
November 30, 2019
Updated: January 12, 2021

What you'll learn

  • How stock trading works and how stock traders make money
  • How to read and interpret stock charts and candlesticks
  • How to spot patterns and trends in the market

Key course lessons

  • Technical analysis and key trading indicators
  • The difference between bullish and bearish trends
  • Understanding how and why stocks change in price

Luckily, it’s far easier to begin trading than it was in the 90s when Wall Street and big money were the only options. Get started with our introduction to stock trading. You’ll come away feeling more confident about the task ahead, while acquiring a base knowledge of all the most important factors.

This course will teach you all the key facets of stock chart reading (also known as technical analysis). By perusing the patterns formed by individual stocks, you’ll be better equipped to know when to buy, when to hold, and when to sell. Once you’ve got the hand of chart reading, you can then move onto more sophisticated (and potentially more profitable) forms of stock trading.

Requirements

  • Understanding of basic stock market terminologies and what they mean.
  • If you’re not confident, we suggest reading through the Stock Markets 101 course first.

Course overview

1. Technical Analysis

Understanding Technical Analysis

Technical analysis is a trading discipline that involves studying and analysing past market data with a view of predicting future price movements. It differs a great deal from fundamental analysis, which entails trying to evaluate the intrinsic value of a security. Technical analysis as a methodology of trading focuses on…
Beginner 3 min read Stocks Courses

Technical Analysis Strategy Basics

Technical analysis is an evaluation technique used by traders to predict price movements in the financial markets. Unlike fundamental analysis, which focuses on underlying fundamentals such as revenue growth and industry trends, technical analysis relies purely on statistical analysis and chart reading. Technical analysis tries to predict the future price…
Beginner 4 min read Stocks Courses

Principles and Assumptions of Technical Analysis

Technical analysis is a popular methodology used by traders and investors to analyse the financial markets or securities. The practice solely relies on price movements and volume data to value securities under study. Technical analysis principles Technical analysis relies on the idea that market forces, made up of supply and…
Beginner 3 min read Stocks Courses

Understanding Technical Indicators

Technical analysts rely on a number of tools when predicting future price trends. Technical indicators are at the epicentre of analysis in the capital markets as they provide valuable information on where the price is likely to go. What Are Technical Indicators? Technical indicators are mathematical calculations based on price and…
Beginner 3 min read Stocks Courses

Trading Patterns Introduction

Trading patterns refer to distinctive formations that appear on trading charts of individual stocks. Such patterns show up as transitions between rising and falling trends caused by price swings. Pattern recognition is at the core of technical analysis, which focuses on trying to predict prices based on patterns that happen…
Beginner 4 min read Stocks Courses

Characteristics of a Great Technical Trading Strategy

A sound trading strategy is a must-have for anyone looking to create wealth by trading securities in financial markets. A proven trading strategy is one that is able to spot reliable entry points for opening trades while also factoring in potential exit points as part of a risk-reward play. Characteristics…
Beginner 3 min read Stocks Courses

2. Charts & Candlesticks

Line Charts & Bar Charts

Data visualisation is so important when trading in capital markets, as it provides an easy way for investors to manage and make decisions. Charts are at the centre of data visualisation as they make it possible for traders to interpret how prices move up and down, as part of technical…
Beginner 4 min read Stocks Courses

Understanding Trading Gaps

Gaps are a common occurrence in the financial markets, occurring whenever there is a disparity between opening and closing prices. Appearing as wide openings with no activity in charts, such gaps provide valuable information and insights about market dynamics — both on the upside and on the downside. What Are…
Beginner 4 min read Stocks Courses

Candlestick Charts Introduction

Candlestick charts are always at the heart of price action analysis and are becoming even more popular lately, given their dynamic features and versatility. They originated in the 1700s when a Japanese ride trader named Honma concluded that human emotions influence price patterns in financial markets. Unlike line charts, bar…
Beginner 3 min read Stocks Courses

Candlestick Continuation Patterns

Candlestick patterns are the building blocks of technical analysis in financial markets. Technical analysts rely on candlestick continuation patterns when trying to predict where the market (or an individual stock) will move after a period of consolidation. Continuation patterns in charts highlight periods of correction and consolidation that take place…
Beginner 3 min read Stocks Courses

Candlestick Reversal Patterns: Bullish vs. Bearish

Candlestick patterns provide some of the best ways of tracking and predicting the price movements of stocks. With a little practice, they become easy to understand and interpret. While the focus is always on trend following, it is also possible to predict price reversals from a prevailing trend when deciphering…
Beginner 3 min read Stocks Courses

3. Bases

Bases

You’ve done your research on a company’s earnings growth, revenue growth, and other key signs of fundamental strength. You’ve verified that the broader stock market is in an uptrend, confirmed by the follow-through day you just learned about in our most recent stock trading lesson. Now comes the next test:…
Beginner 4 min read Stocks Courses

Cup-With-Handle Base

In our last lesson, we looked at the concept of bases, what they are, and why they’re important for investors to identify. Now it’s time to jump into specifics, looking at the different kinds of bases, how they form, and what they can do. Our first lesson in that series:…
Beginner 3 min read Stocks Courses

Saucer-With-Handle Base

Did you enjoy that last lesson on cup-with-handle bases? Great! You’re now ready for the next lesson, a look at the cup-with-handle base’s cousin: the saucer-with-handle base.  What Is a Saucer-With-Handle Base? Like a cup-with-handle base, a saucer-with-handle base is a price consolidation that a stock goes into after a…
Beginner 4 min read Stocks Courses

Double-Bottom Base

In our last lesson, we learned all about saucer-with-handle bases, the cousin of cup-with-handle bases. The next lesson deals with a completely different-shaped base, albeit one that can also deliver gigantic gains: the double-bottom base. What Is a Double-Bottom Base? Like all bases, a double-bottom base is a price consolidation…
Beginner 3 min read Stocks Courses

Flat Base

If you’re reading these lessons in order, you just learned all about double-bottom bases. Our next lesson focuses on a powerful type of base, albeit one with very different characteristics than what we’ve seen before. Say hello to the flat base. What Is a Flat Base? A flat base is…
Beginner 4 min read Stocks Courses

V-Shaped Base

Over the past few lessons, we’ve delved into some of the most bullish chart patterns you can find for individual stocks. These patterns, also called bases, have produced some of the biggest winners in stock market history. But there’s one kind of base that spells trouble for a stock, flashing…
Beginner 3 min read Stocks Courses

Breakout Trading

During our lessons on various kinds of bases, we’ve frequently mentioned the concept of a breakout. Now it’s time to take a closer look at breakouts, the single most powerful stimulus a stock can have for big gains. What Is a Breakout? A breakout occurs when a stock’s price passes…
Beginner 3 min read Stocks Courses

4. Trading Strategies

Day trading

Day trading is an active trading strategy that involves opening trades once the market opens and closing them, at a loss or profit, before the market closes. In day trading, traders don’t leave positions opened overnight, thus eliminating the burden of additional costs or unforeseen events that might affect price…
Beginner 3 min read Stocks Courses

Swing trading

Swing trading is a strategy deployed by traders looking to take advantage of price reversals. Every prevailing trend sometimes experiences reversals upon hitting critical technical levels. At the end of every trend, there is usually a period of high price volatility in the opposite direction, which swing traders always look…
Beginner 4 min read Stocks Courses

Position trading

Position trading is a trading strategy common with trend followers. While relying on longer period charts, position traders determine a trend and open positions based on the prevailing trend. Unlike day traders and scalpers, position traders are less concerned by short-term market fluctuations, which is one of the reasons why…
Beginner 4 min read Stocks Courses

Scalping

Scalping is an active trading strategy deployed by traders looking to take advantage of small price movements in the market. Scalpers open and hold positions for short periods while relying on strict exit strategies. Once a position is opened, a trader will hold the trade as long as it is…
Beginner 4 min read Stocks Courses

5. Technical Indicators

The Importance of Trading Volume

When investors buy and sell stocks, they typically focus on the price of those stocks. While price is obviously important, there’s another important factor that must be considered when evaluating the strength of an individual stock, or the broad market: trading volume. What Is Trading Volume? Trading volume refers to…
Beginner 3 min read Stocks Courses

Market Follow-Through Day

When the stock market falls into a correction or a bear market, it’s hard to know what to do next. If you’ve sold your stocks to escape the damage caused by a market downtrend, how do you know when to jump back in? The answer is: Look for a market…
Beginner 4 min read Stocks Courses

Understanding Bollinger Bands

A Bollinger Band is a technical analysis indicator used to measure market volatility. Simply put, the indicator tells whether the market is in a period of low or high volatility, depending on the size of the bands and how prices oscillate. A Bollinger Band primarily consists of a set of…
Beginner 4 min read Stocks Courses

Using trading oscillators

Oscillators are technical analysis tools ideal for markets that are range-bound and trading sideways. They can also be interpreted as indicators that fluctuate above and below a centerline as the price of an underlying asset fluctuates from high to low and vice versa. The most popular oscillator indicators include a…
Beginner 3 min read Stocks Courses

Stochastic Oscillators

Stochastic Oscillator is a popular technical analysis indicator that provides additional information about momentum and trend strength. Developed by George Lane in the 1950s, the indicator analyses price movements and in return, tells you about the speed and strength of price moves. The momentum oscillator is based on two main…
Beginner 4 min read Stocks Courses

Momentum oscillators

A momentum oscillator is a type of leading indicator that measures the amount by which the price of a given security has changed over a given period. These sets of indicators help gauge the strength and momentum of a trend as well as overbought and oversold market conditions. Being an…
Beginner 3 min read Stocks Courses

Moving Averages

Moving averages are commonly used technical indicators that smooth out price to show current market direction and to indicate trend reversals. The trend-following indicator is also known as a lagging indicator, as it’s based on past price movements. By smoothing price action, these sets of indicators filter out noise. Regardless…
Beginner 4 min read Stocks Courses

Exponential moving averages

Exponential Moving Average (EMA) is a trend-measuring indicator known to respond faster to recent price changes than any other Moving Average. The indicator gives more weighting to recent price data than any other data regardless of the period of use. Just like other moving average indicators, EMA is best suited…
Beginner 3 min read Stocks Courses

How to use moving averages

Moving averages are one of the most popular technical analysis tools for traders. Trading strategies based on moving averages are popular as they can be tailored to fit any period, therefore they’re considered ideal for both long-term and short-term traders. Moving Averages for Trend Analysis Moving averages provide valuable information…
Beginner 3 min read Stocks Courses

Moving average convergence-divergence indicators

The moving average convergence-divergence indicator (MACD) is a popular momentum indicator that technical analysts use to identify whether a market is trending up or down. The indicator shows the relationship between two moving averages used in price action analysis.  MACD uses three numbers for its settings. The first is the…
Beginner 4 min read Stocks Courses

Understanding the Relative Strength Index

The Relative Strength Index (RSI) is a technical analysis indicator that measures the speed and change of price movements. By measuring the magnitude of price changes, the indicator can evaluate both overbought and oversold market conditions. Relative Strength Index is a versatile technical analysis tool for: Generating buy and sell…
Beginner 4 min read Stocks Courses

Outro

You’ve absorbed all of our lessons on Stock Trading. Way to go! You now have a great understanding of the many factors that go into stocks’ price movement, both during up-trends and downtrends. You’ve now got professional-level skills when it comes to both long-term trading and short-term trading. You can…
Beginner 1 min read Stocks Courses

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