Speaker A
So welcome to the actual first video of the course. This week is all about trying to understand financial markets. If we want to become a participant in financial markets, like an investor or a trader, we kind of need to have an idea
Introduction to financial markets covering their history, structure, participants, and the importance of understanding money and inflation.
Key Takeaways
- Financial markets have a rich history that shapes their current structure and future.
- Understanding money creation and inflation is crucial for effective investing.
- The course promotes independent thinking and critical evaluation of information.
- Multiple learning formats (reading, viewing, listening) support diverse learning preferences.
- Currency devaluation risks highlight the importance of proactive financial management.
What the video covers
- This video is the first in a course on financial markets, focusing on their history, present state, and future.
- The course is structured into weekly modules, each with three chapters: history/present/future, types of markets, and market participants.
- Understanding financial markets is essential for investors and traders to navigate the arena effectively.
- The video emphasizes the importance of understanding how money works, including creation and inflation impacts.
- High inflation reduces purchasing power, making it necessary to invest capital to outpace inflation.
- Examples of currency devaluation in countries like Turkey, Argentina, and Venezuela highlight risks of not investing.
- The course provides multiple sources per chapter, including mandatory and advanced optional materials for deeper learning.
- Neutrality is maintained throughout the course; no financial advice or promotion of specific views is given.
- Students are encouraged to think critically, form their own opinions, and not blindly follow any source or instructor.
- The video introduces foundational resources such as Investopedia for understanding basic financial market concepts.
Chapters
- 00:00Introduction to Financial Markets and Course Structure
- 01:17Weekly Course Structure and Chapter Overview
- 02:28Importance of Understanding Inflation and Money
- 03:33Guidance on Financial Awareness and Course Sources
- 04:40Neutrality and Critical Thinking in Financial Education
- 05:45Encouragement for Independent Thought and Source Evaluation
- 06:48Source Content and Language Considerations
- 07:58Basic Financial Market Concepts and Resources
Full Transcript — Download SRT & Markdown
Speaker A
of the arena that we're stepping into. So we need to start, as I said in a previous video as well, with a broad overview. Generally, we do this by looking at the history, for example, how financial markets came to be. Now, as
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mentioned, we do this via external sources, so reading, viewing, and some listening. Those sources are going to be crucial to understand a thing or two about, you know, the markets that we're going to be operating in. Let's just go to the slides, and I
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will, you know, explain a little bit more about the structure as I've promised, and we will just slowly take it step by step for this first week, or at least the first video of this week. This week has three
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chapters, so three videos like these. And yeah, so financial markets highlighted in green this video. I will maybe leave this structure slide out in the next video. This is just because this is the first time, week one, financial
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markets, three chapters. Every week has three chapters, so we maintain that structure: chapter one, history, present, and future; chapter two, types of financial markets; and chapter three, financial market participants. So then we move on to the next week, and
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next week is going to be about investing, the basics, etc. You can see that in gray below, more structures. So the videos and the sources per chapter: we have one video, that's the one you're watching right now,
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four to five mandatory sources per chapter. So we're going to just look at the sources in the video. I'm not going to, you know, go too deep into it, but I just want to talk you through it a little bit. Every chapter includes a
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non-mandatory advanced source. So it's not mandatory, but right here we already have an exception. For this very first chapter, I want you to really watch the advanced source because it's about the workings of money. If you understand
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how money works, how money works, how it is created, and how we are, for example, right now experiencing quite high inflation, you can come to the conclusion that we need to put our capital to work, at least currently with this outlook. If
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you have high inflation, it just means that you're, you know, able to buy less and less products for the same dollar or euro, whatever your currency of choice is. We kind of need to outpace inflation in order to
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maintain at least a neutral balance or just simply in order to not, you know, see the value of our currency deteriorate. Now, for our, I will come back to this probably at the end of the video, but for, for
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like Europeans or in the Western world, maybe this is not such an obvious scenario where the money really devalues. But if you just look at what happened with the Turkish lira or what happens in Argentina or Venezuela, even worse, or
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you know, other countries in the past, the devaluation of your currency once that gets accelerated is something that we really need to be aware of. It's just not a position that we want to be in, right?
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So that final video, the advanced one, really watch that because that goes into that a little bit, to, you know, give you a perspective on like, hey, wait a minute, you know, I do need to just pay a little
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bit of attention to my finances, right? And, you know, don't worry, that's what we're here for as well, to guide you and guide you through that. So sources consist of either reading, viewing, or listening, but that's highlighted on the
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Coils platform as well. And yeah, so five mandatory, four to five mandatory ones, and then, you know, sometimes it's in total five, sometimes it's in total six sources. All of them interesting, but sometimes the advanced
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one just goes into something really deep or is like a quite a lengthy video. We've always had students in the past who just wanted to go the extra mile and found the general content maybe, you know, not challenging enough. So for you guys,
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that is always there to dive even deeper into the content sources. Disclaimer, and this is important, I do want to highlight this because I do not want you guys to have the view that we are trying to get you to think in a
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certain way. I or Hans or any of the members of the team may express a certain enthusiasm about a certain asset or about a market or a technology, like for example, I'm quite excited about blockchain technology still after all
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these years. That doesn't mean that, you know, I'm going to talk you into my beliefs or my view, etc. We really try to avoid it. We try to stay as neutral as possible, and we also want to do that
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with the sources. What do I mean with that? Well, let's just come back to the first one again. Not financial advice. Nothing we say is ever advised, so don't just follow blindly what we do. Again, we're trying to, you know, teach you or
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not teach you, like help you how to think or help you think like an investor and trader. It is not necessarily the advice to follow a certain person in a source. So it may be a tweet of something. If we
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share a tweet, it doesn't mean that we think the author of the tweet is super awesome and we support everything that he or she says, right? It may very well be that a person has a very good
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take, like a good view on something, but, you know, they're at the same time trying to promote or, you know, sell you a course that, you know, we just simply do not support. And here you get what I mean with that.
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You really need to start to learn to think for yourself, right? Like some stuff you just take what you can from the sources, from our lectures, from me speaking, and see what makes sense for you, right? So you may be like
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completely contrarian to one of my ideas and think like, well, you know, the nice that you have that view, but I think something completely different. That's great if you disagree with me actually, and that you
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know, you come to that point by thinking for yourself. So we will not try to brainwash you into a certain way of thinking or belief, really. We want to stay as neutral as possible. We present the sources to use like, hey, we
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found this interesting. It gave us maybe a certain perspective or it gives a certain view, and that's it, right? From there on out, you can decide what you want to do with that source, how you rate it, if you think it was useful, and
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you're always more than welcome to provide us with feedback on the sources. So form your own perspective after viewing, reading, or listening to the sources. I do have to say some of the sources, there are people that are
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you know, like remarkable in skill set but use of language sometimes, you know, could be improved, or, you know, it's, you know, most often there's just not a desire to improve that, or, you know, the F and the S word sometimes are there in
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the sources. We apologize for that, but it doesn't take away the fact that sometimes it's a very good source. Just because somebody swears doesn't mean they're not intelligent, if you will. So, you know, yeah, some sources
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we've had that we wanted to take them out, but then it's like, no, but, you know, the content, what is actually shared there, you know, is quite crucial. So pardon our sources is French. So, the history, present, and future,
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that brings us to the actual sources, and I'm going to tdfa DJ djfa my way to the sources. I hope I'm doing this right. Yeah, there we go. First up, so Investopedia. Don't worry, we're not going to, you
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know, read all these lines together. I will not do that to you, but I just want to highlight the fact that this is one of the basic, most basic sources. What are financial markets? Just read through it, try to get an
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understanding of what a financial market is, what the terminology is around them. In the subchapters here, you can see, you know, how it works, etc. It's really quite ex-
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if you don't understand it or if something is unclear bring your question to the Discord or bring it to the lecture and we can talk about all this stuff more in depth and the lectures will obviously be connected to the
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sources and we will take us take a topic and dive into it deeper I want to highlight that investopedia.com is a website that probably has everything you could ever need as an investor when it comes to like hey what is this how does
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this product work how what is an exchange what is a broker what is a stock you know anything that you can that you want to ask when it comes to investing or trading or financial markets you can find it probably on
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Investopedia so we do recommend this Source we use it all the time and often it's very well explained and anything that you yeah that you can just wish to know you can probably find there so read through what financial
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markets are um and yeah just try to learn as much as possible so again the history present and future we've selected a couple of videos of how our financial markets created uh going back in time a little bit
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um the stock market explains that this is quite entertaining again like sometimes for example with this Source uh some of the stuff is like really hyped it's not something that like with the presentation I would necessarily agree on but there are just key aspects in a
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video like this where that bring you to a certain level of knowledge to you know that help you understand what we're trying to what we're talking about here now this is a very cool video uh what was the biggest company in history still
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bigger than today's company in today's terms if you uh you know take that uh into account uh and that's the the VOC or the Dutch East India Company the story is fascinating it's uh it's got a lot of super interesting uh cool stuff
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it also got some darker stuff um again we are completely neutral not because I'm Dutch I'm promoting the the VOC or something like that to me this is also just a fascinating story about the history of humanity and actually there
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were some key moments in the history of this company that led to financial markets being the way they are right now so certain products certain ways of transacting certain uh ways of doing business or raising capital for a
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business were actually pioneered in this era by this company so really super interesting to um to see that and I'll get to my perspectives in a second um but then we move to the future of of finance and then we arrive to at least a
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part of it a potential part of it and that is decentralized finance and for this you need to understand a little bit about blockchain or Ledger technology and we will do so in the in the lecture uh or maybe both lectures but definitely
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the Friday lecture of the first week and we will talk about blockchain for example because it's crucial to understand at least a little bit how blockchain Works in order to understand what decentralized Finance is and um that brings me already to a point
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where you if you shape your view on financial markets let me uh see if I can do this and again do my DJ trick um it is really Paramount that if you are an investor that you understand what
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you invest in and the better you understand what you invest in the better your performance is going to be so the people that understood blockchain from a technological perspective in like say 2015 16 17 Etc they would have had the
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conviction to buy something for a longer time Horizon than you know just like a 20 or 100 price move for example um if you understand what you're investing in then your conviction into something your thesis around something is completely going to change
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and that's why we think it's so important to understand all these components starting from like a wide overview to actually taking sectors or or sub components of this overview and actually looking at looking at it in depth to see what the opportunities are
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so if you understand for example how traditional financial markets work then if you see a potential innovation of the way certain you know like the financial markets work today so we have stock Brokers we have stock exchanges and all these people transacting Etc but
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for example one example that I can give is like the U.S stock exchange is not available to every person on the planet but with if something like decentralized Finance where you change the infrastructure at which this thing which
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like the transactions are operated you could for example make it globally accessible if in order to get the I'm not saying that this is going to happen this is not my view I'm not I don't even I'm not invested in anything D5 at the
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moment um but I do understand the implication so and that helps me to create a thesis when it comes to like okay this is how it works in what we call traditional Finance um we transact with each other in a
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certain way we use these and these products but now there is something something of a technological development that could actually improve that like what is that worth right like is that something worth betting on is that something worth investing on these are
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in these These are the questions that we need to asking ourselves so I repeat again like the more we understand the markets that we operate and the more we understand the technology the the entire structure of the thing uh the the
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clearer our view is just simply going to be right and the better our decision making is going to be because we realize like hey wait a minute something is being developed there which is going to you know make it much more efficient is
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going to be much faster to transact with each other or even like the the entire brokerage firm would not be necessary if this technology really you know does what it promises to do those are just questions that we can work with and this
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ultimately helps us shape uh our view on something and it helps us create an investment thesis um I think that's uh that's some perspective at least for now so that that's quite an important aspect that we understand where we came from right we
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understand how markets developed and we try to get a view on where things are going because remember um you know investing is not about it's it's a little bit about the past it's about seeing what what in what happened
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in the past but it's very much about making decisions for the future right so let's um and I I think we just really need to understand where we came from so that's why we've um selected these topics so
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decentralized Finance it's really super interesting um some say that it could be the entire backbone of the new Global Financial system in you know uh x amount of years who knows what that's going to be the thing is and this is something that I
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can uh support is that it's a very very interesting development so we're going to look at this also later in the program extensively really to to get you to understand how blockchain Works how D5 Works Etc so plenty to come take your
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time just read through it and again if you have questions come back to us in uh in the Discord or in the lecture as mentioned the advanced source and yes I know this is getting quite lengthy but hopefully you find this valuable
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you know hopefully I'm not wasting your time with these videos I I don't think so I'll give it my best anyway the uh this Advanced source so money Humanity's biggest illusion it's really cool to understand what money actually is and
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how we sort of agree with each other that it has value right it's very odd that a hundred dollar bill or a 100 euro note is actually worth that when the paper itself isn't you know obviously not really worth that so it's like how
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does that work how does how did money sort of came to be I found this a very interesting Source one of the things um at the end I'll I'll not spoil it for you just really don't go to the end
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immediately watch the entire video that for example is an example like okay obviously the Creator you know has a certain perspective and we do not necessarily agree with that perspective we just keep it neutral we just found this video both entertaining
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and enlightening so um that's why it is there um okay so to PowerPoint uh as I DJ my way through this again uh some perspectives right too close maybe off for this video so to repeat uh we start with an overview of financial
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markets the history how they came to be what they look like right now and what they may potentially look like into the future and the reason why we did this is we want to create we help like we want
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to help you think in a certain way have like a look at markets in a certain way and of course if you know you want to be a participant if you want to enter this Arena this uh Global game that is being
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played the game of Finance you need to understand what you're getting into and hopefully these sources so for this chapter obviously there are two more chapters which we'll dive uh deeper into certain aspects hopefully this chapter will help you shape that and as I did
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like sometimes I'll just go on a rent I will give some perspective something that just comes from experience or or something that I've learned along the way and we'll just you know uh put that in between their and you will see me rent I
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think this video is long enough for now let me cut it here um any questions Discord or during the lectures best of luck take your time really to try to understand the sources and we'll see each other in the next
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video
Topics:financial marketsinvesting basicsinflationmoney creationcurrency devaluationblockchain technologyfinancial educationinvestor mindsetmarket participantsfinancial history
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