Skillsfirst Level 3 Certificate in Introduction to Financial Trading (RQF) 

Skillsfirst Level 3 Certificate in Introduction to Financial Trading (RQF) - UNIT 1: Principles of financial trading
SECTION 1 – PRINCIPLES OF FINANCIAL TRADING
5 Topics
UNDERSTANDING THE ROLE OF A FINANCIAL TRADER
INVESTORS
WHAT IS A TRADER?
COMMON TYPES OF TRADERS
ALGORITHMIC TRADING
SECTION 2 – UNDERSTAND THE OPERATION OF FINANCIAL MARKETS
58 Topics
WHAT ARE THE FINANCIAL MARKETS?
HOW DO FINANCIAL MARKETS OPERATE ?
CASH MARKETS
THE ORIGINS OF THE FUTURES MARKET
WHAT IS A FUTURES MARKET?
SPREAD BETTING
CONTRACT FOR DIFFERENCE (CFDS)
THE MAIN DIFFERENCE BETWEEN SPREAD BETTING AND CFDS
ECONOMIC INFLUENCES ON THE FINANCIAL MARKET
AGGREGATE SUPPLY AND DEMAND
KEYNESIAN CROSS
MARSHALLIAN CROSS
THE BUSINESS CYCLE
INFLATION
MEASURING INFLATION
THE ROLE OF INFLATION IN THE ECONOMY
CAUSES OF INFLATION
STOPPING INFLATION
MONETARY THEORY
BALANCE OF PAYMENTS
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SECTION 3 – UNDERSTAND THE OPERATION OF TRADED FINANCIAL PRODUCTS
55 Topics
INTRODUCTION
TRADING EXCHANGES
WHAT IS THE BOND MARKET?
GOVERNMENT BONDS
CORPORATE BONDS
WHAT IS A BOND FUTURE?
FACTORS THAT WILL INFLUENCE BONDS PRICE
ACCRUED INTEREST
DURATION
THE DURATION OF A BOND FUTURES CONTRACT
YIELD TO MATURITY (YTM)
PRICE AND YIELD
ECONOMIC RISKS TO BONDS
TYPES OF BOND FUTURES CONTRACTS
US TREASURIES
GERMAN DEBT SECURITIES
UK DEBT SECURITIES
WHERE ARE BONDS TRADED?
BOND DEALERS
BOND INVESTORS
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SECTION 4 – UNDERSTANDING THE PSYCHOLOGY OF MARKET TRADING
21 Topics
MARKET PSYCHOLOGY – MARKET SENTIMENT AND CROWD BEHAVIOUR
BEHAVIOURAL FINANCE AND ECONOMICS
HISTORY
METHODOLOGY
KEY OBSERVATIONS
BEHAVIOURAL FINANCE TOPICS
CRITICISMS OF BEHAVIOURAL FINANCE
REFERENCES
TRADER PSYCHOLOGY – TRADE EXECUTION
WHY TRADERS CAN’T ALWAYS PULL THE TRIGGER
TAKE SOME ACTION
LEVERAGE YOURSELF
EMOTIONAL INTELLIGENCE
EMOTIONAL LEVELS
ACCEPT YOUR EMOTIONS
THE PSYCHOLOGY OF OPTIMISM
TRADE EXECUTION
GOAL SETTING
PROFIT & LOSS
PLAN RECAP BEFORE YOU START
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Skillsfirst Level 3 Certificate in Introduction to Financial Trading (RQF) - UNIT 2: Principles of Financial Planning and Cash Flow in Financial Trading
SECTION 1 – UNDERSTANDING FINANCIAL MANAGEMENT IN FINANCIAL TRADING
6 Topics
INTRODUCTION
TRADING ACCOUNT
MARGIN
OVERNIGHT MARGIN
MARGIN CALL
LEVERAGE
SECTION 2 – FINANCIAL TARGETS IN FINANCIAL TRADING
8 Topics
INTRODUCTION
SELF EMPLOYED TRADERS & DAY TRADERS
STOPPING OUT FOR THE DAY
FINANCIAL INSTITUTIONS
INVESTMENT PERFORMANCE & RISK
EXCESS RETURN
SHARPE RATIO
THE JENSON MEASURE
SECTION 3 – BUSINESS TAX AND VAT ON FINANCIAL TRADING
4 Topics
INTRODUCTION
STAMP DUTY
FINANCIAL TRANSACTION TAX (FTT)
FINANCIAL TRANSACTION TAX TYPES
Skillsfirst Level 3 Certificate in Introduction to Financial Trading (RQF) - UNIT 3: Understanding financial trading techniques
SECTION 1 – UNDERSTANDING HOW TO ANALYSE THE MARKET AND TRADING PATTERNS
50 Topics
INTRODUCTION
TECHNICAL ANALYSIS
MARKET ACTION DISCOUNTS ALL KNOWN INFORMATION
PRICES MOVE IN TRENDS
HISTORY REPEATS ITSELF
THE DIFFERENT TYPES OF CHARTS – LINE CHARTS
THE DIFFERENT TYPES OF CHARTS – BAR CHARTS
THE DIFFERENT TYPES OF CHARTS – CANDLESTICK CHARTS
LONG DAYS
SHORT DAYS
MARUBOZU
SPINNING TOPS
DOJI
HAMMER
HANGING MAN
ENGULFING
HARAMI
HARAMI CROSS
INVERTED HAMMER
SHOOTING STAR
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SECTION 2 – UNDERSTAND HOW TO TRADE FINANCIAL PRODUCTS
40 Topics
INTRODUCTION
TYPES OF TRADING
OUTRIGHT TRADING
SPREAD TRADING
TYPES OF SPREADS – CALENDAR SPREADS
TYPES OF SPREADS – INTERCOMMODITY SPREADS
TYPES OF SPREADS – INTRA-COMMODITY SPREAD
TYPES OF SPREADS – BUTTERFLY SPREADS
FUTURES BUTTERFLY SPREAD EXAMPLE
ECONOMIC INDICATORS KEY TO TRADING
READING ECONOMIC INDICATORS INTRODUCTION
WHICH INDICATORS MATTER MOST?
RELEVANCE, TIMELINESS AND RELIABILITY
BUSINESS CYCLE PHASE
STRUCTURAL CHANGE AND POLICY REACTION
A NOTE ON SEASONAL ADJUSTMENT
ECONOMIC ACTIVITY INDICATORS – HOW DO THEY TALLY?
GDP – THE CORE CONCEPT
SEVERAL FACES TO THE SAME COIN
EXPENDITURE SIDE IN THE US, BUT OUTPUT SIDE IN EUROPE
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LEVEL 3 – UNIT 2 FINAL ASSESSMENT
LEVEL 3 – UNIT 1 FINAL ASSESSMENT
LEVEL 3 – UNIT 3 FINAL ASSESSMENT
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REFERENCES

Skillsfirst Level 3 Certificate in Introduction to Financial Trading (RQF)  SECTION 4 – UNDERSTANDING THE PSYCHOLOGY OF MARKET TRADING REFERENCES
  • Kahneman, D. & Tversky, A. ‘Prospect Theory: An Analysis of Decision under Risk,’ Econometrica, XVLII (1979), 263–291
  • Shefrin, Hersh (2002) Beyond Greed and Fear: Understanding behavioural finance and the psychology of investing. Oxford Universtity Press
  • Camerer, C. F.; Loewenstein, G. & Rabin, R. (eds.) (2003) Advances in Behavioural Economics
  • Shleifer, Andrei (1999) Inefficient Markets: An Introduction to Behavioural Finance, Oxford University Press
  • Shlomo Benartzi; Richard H. Thaler ‘Myopic Loss Aversion and the Equity Premium Puzzle’ (1995) The Quarterly Journal of Economics, Vol. 110, No. 1.
  • Matthew Rabin ‘Psychology and Economics,’ Journal of Economic Literature, American Economic Association, vol. 36(1), pages 11-46, March 1998.
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