• Why Issue Shares
  • Why Invest in Shares
  • Stock Exchange
  • Indices
  • Bull & Bear Markets

Why issue Shares

  • In order to start a new company or expand an existing one you need capital. Companies use various sources for that capital
  • The owners can use their own money
  • The company can borrow from a bank or other people
  • The company can issue and sell shares to investors
  • The advantage of raising capital through shares is that you don’t have to pay back the money or pay interest to the investors

Why Invest in Shares?

  • A share, (also known as a stock or equity) is the smallest unit of ownership in a company. If you own a share of a company’s stock, you are a part owner
  • In the long run shares offer better returns than government or corporate bonds, property and many other types of investment
  • As a shareholder you have the right to vote on who runs the company and other important matters like selling the company
  • By becoming an owner of the company you get a share of the profits this company makes – This is what is known as dividend
  • If the company is profitable the price of its shares will rise and you will make a profit– This is known as capital gain

The Stock Market

  • The stock market or stock exchange is simply the place where shares are traded – meaning bought and sold
  • Shares of listed companies like Apple and IBM are traded in a stock exchange like the New York Stock Exchange
  • Exchanges used to be physical locations where dealers used to meet but modern markets are switching to online trading
  • Although most stocks are traded through an exchange, trading can also take place off exchanges or Over-the-Counter via CFDs

Stock Market Indices

  • Indices summarize the performance of major groups of stocks
  • It is calculated by finding an average price from the prices of the stocks within the group
  • The Dow Jones 30 index is calculated using the closing prices of 30 of the biggest companies in the US stock exchange
  • The UK100 is an average of 100 shares in the UK exchange, Nikkei225 from 225 shares in Japan
  • It represents the general performance of the market, and can be traded as a whole instead of buying each individual share

Bull and Bear Markets

  • The stock market represents a constant battle between buyers and sellers and reflects positive or negative price movements
  • If a company is profitable at the moment and expected to make more profits in the future the price of its share will rise
  • A bull market is a market where the majority of its shares or indices are experiencing a rise in prices
  • If a company is not profitable at the moment and is not expected to make future profits, its share price will drop
  • A bear market is a market where the majority of its shares or indices are experiencing a fall in prices
  • What are CFDs
  • Types of CFDs
  • Advantages of CFDs
  • Disadv. of CFDs
  • Examples on CFDs

What are Contracts For Differences?

  • CFDs are financial derivatives that allow investors to participate in the movement of asset prices without full ownership of the asset
  • CFDs are over the counter financial derivatives that are traded through a dealer network and not through a formal exchange
  • CFDs simulate the value of the underlying asset which can be a currency, a share, a stock market index or a commodity
  • For example when you buy 1 CFD of Microsoft it is like buying 1 share of Microsoft with the only difference that you don’t own the share
  • All profit and loss is paid in cash and is determined by the difference between the purchase price and the selling price of the CFD


Comparing XYZ Share & XYZ CFD

Types of CFDs

  • Currencies (eurusd, gbpusd, usdjpy…)
  • Cryptocurrencies (bitcoin, etherium…)
  • Indices like (US500, DAX and Jp225)
  • Equities (Microsoft, Apple, Alibaba…)
  • Commodities (gold, oil, silver, sugar…)

Advantages of CFDs

  • Profit from both rising and falling markets
  • Investors can trade using leverage
  • Fast execution and low transaction costs
  • Small contract sizes
  • No physical delivery

Disadvantages of CFDs

  • CFDs on equities have no voting rights
  • CFD positions cannot be transferred to a different CFD provider or broker
  • Trading with high leverage increases risk
  • Ease of access and low capital requirements can lead to overtrading
  • Swaps are charged

Apple Share vs Apple CFD

Bitcoin in Exchange vs Bitcoin CFD

The Story of Desmond Leong

Desmond is your average trader. He started off blowing up 7 (or more.. lost count) accounts amounting to more than 500k, tested over 30 Expert Advisors (EAs) to no success and spent over 10k on stupid useless courses.

Today he runs an award winning trading team and provides market analysis and webinars to some of the largest brokers such as IC Markets, XM, Axi, Tickmill, FXCM, VantageFX, easyMarkets and more.

He now has a simple goal: Creating an army of traders who trade profitably together and keep each other accountable. Guiding them with the most comprehensive no-BS free tutorials so that no one ever needs to go through the pain he went through himself to become a profitable trader.

My Trading Strategy


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Trading in foreign exchange (“Forex”) on margins entails high risk and is not suitable for all investors. Past performance is not an indication of future results. In this case, as well, the high degree of leverage can act both against you and for you. Before you decide to invest in foreign exchange, you should carefully assess your investment objectives, experience, financial possibilities and willingness to take risks. There is a possibility that you will lose your initial investment partially or completely. Therefore, you should not invest any funds that you cannot afford to completely lose in a worst-case scenario. You should also be aware of all the risks associated with foreign exchange trading and contact an independent financial advisor in case of doubt.

Trading Derivatives carries a high level of risk to your capital and you should only trade with money you can afford to lose. Trading Derivatives may not be suitable for all investors, so please ensure that you fully understand the risks involved and seek independent advice if necessary.

Leverage enables traders, using a relatively small amount of money, to take a position that is many times the initial investment. This leverage effect can work both in your favour and to your detriment. The Forex market opens up the possibility to utilize this leverage effect to a high degree; at the same time, however, it also opens up the risk of experiencing high losses. Please trade with caution when you use leverage in trading or investing. Your risk is particularly not limited to the initial investment, but can quickly fall into a negative range in the event of strong movements, meaning you may be obligated to pay far more than your initial wager.