Course 101 – Introduction

This training course seeks to help you understand what investing is.  It will help you to understand why you want to invest, what your goals are, and what different types of investment options you have. The first sections look at what types of investors there are and the types of goals they set.

The following sections then provide an overview of the types of investments you could make.

• Stocks – investing in individual stocks on the stock market
• Funds – investing in managed and unmanaged funds
• Futures and Options – more advanced trading vehicles
• Commodities & Precious Metals
• Currencies, Bonds, and Money Markets

We hope you enjoy this educational guide through the world of investing.

Try our quiz to assess your knowledge before the course

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What factors can impact your investment decisions?

Stock Tips

Rumours

News

All of the above

Correct! Wrong!

What should be your minimum goal in terms of yearly return when investing in the stock market?

Beating the return of the Index e.g. the S&P 500

3%

10%

25%

Correct! Wrong!

What do you think is a maximum realistic yearly return you can earn from the stock market?

25% Warren Buffet's Yearly Return

50%

100%

6%

Correct! Wrong!

What is risk analysis?

Wear a bicycle helmet to reduce your risk of a head injury

Understand the amount you can win

Understand the investment class, bonds, stocks, precious metals

The comparison of the potential risk (loss) versus the reward (profit)

Correct! Wrong!

Which investments are considered the highly risky?

Spread Betting, Contracts for Difference (CFD's), Penny Stocks, Foriegn Exchange

Bonds

Stocks

Correct! Wrong!

What types of stocks should you avoid?

Common Stocks

Penny Stocks & OTC Stocks

Correct! Wrong!

ETF stands for what?

Exceptional Trade Forecast

End Trade Finance

Exchange Taxed Fund

Exchange Traded Fund

Correct! Wrong!

ETFs provide what advantages?

Low Costs, Diversification, Liquidity

Offshore Investments that are Tax Free

Correct! Wrong!

Mutual funds can be a good investment vehicle. However what are the disadvantages?

Expensive & Complicated cost structures

They are unregulated investments

Correct! Wrong!

Hedge funds…?

are funds that invest in garden vegetation – hedges, trees and plants

are designed for sophisticated investors with a high net worth and pursue aggressive investment strategies

Correct! Wrong!

The futures market...?

enables participants to hedge against rising or falling future prices

attempts to see into the future by predicting future prices

Correct! Wrong!

Commodities markets allow for…?

Please select 2 correct answers

Trading of forward contracts - A forward contract is the agreement to exchange the goods at a specified time in the future for a price that is agreed upon today.

The purchase of corporate bonds

Spot trading of physical goods - The participants in a commodities spot trade usually expect to receive immediate or near future delivery of the actual goods they have purchased.

Forbid the use of futures contracts

Correct! Wrong!

Who uses a foreign exchange market?

Holiday Makers, Central Banks, Corporations

People who want to exchange foreign goods with each other

None of the above

Correct! Wrong!

Is Foreign Exchange Day Trading high risk?

No

Yes

Correct! Wrong!

In finance what types of bonds exist?

Bills

James

Correct! Wrong!

Course 101 - Introduction to Investing Quiz

Well Done - Future Successful Investor In the Making

Great result, you understand key stock market terminology, what good investing results look like, where the risks are, and the different ways to invest. To move ahead with learning, you can try our short Course 102 - Stock Market Investing or fast tack your way to professional level knowledge with the Liberated Stock Trader PRO Training.

Good Try, but its back to study in the library for you.

Still some work to do. You need to understand the difference between ETF's, Bonds, Penny Stocks and Commons Stocks. Understanding Risk Management is also important. Try going through the Course 101 and see what you missed.or Try Our Trading Plan Training Alternatively, book your place on the Liberated Stock Trader PRO Training - the 16 hours of Video lessons will definitely help you move ahead faster.

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