The course begins with an introduction to the fundamental analysis principles and basic concepts. This section covers economic, financial, and industrial factors that affect the intrinsic value of companies and their stocks. Students learn how to identify and analyze these factors. A key part of the course is teaching students how to analyze company financial statements (balance sheet, income statement, and cash flow statement), which helps them assess the financial health and performance of companies.
Students are also taught various stock valuation methods, such as discounted cash flow (DCF) models and financial ratios. This section helps determine the intrinsic value of stocks, allowing students to compare market prices with intrinsic values. The course also introduces and teaches the use of technical indicators such as moving averages, the Relative Strength Index (RSI), MACD (Moving Average Convergence Divergence), and Bollinger Bands. These tools aid in predicting future price movements.
Students become familiar with price patterns like head and shoulders, triangles, and continuation and reversal patterns. They learn how to identify and interpret these patterns in price charts. An essential topic in the course is risk and capital management, which includes strategies for minimizing investment risks and optimizing portfolio returns. Students learn to identify and manage the risks associated with the stock market.
The course typically includes practical exercises and final projects, allowing students to apply the learned concepts to real market situations. These projects often involve the comprehensive analysis of one or more companies using both fundamental and technical analysis techniques, helping to evaluate performance and strengthen students' practical skills.