BASICS OF SHARE MARKET
BASICS OF SHARE MARKET
In this part the following topics will be covered in detailed:
· Why should one invest?
· Importance of inflation
· What care one should take while investing?
· Investment options
· Which investment option gives the best returns?
· Difference between different investment options
· Power of compounding
· Example of INFOSYS & likewise companies
· How 100 shares of Infosys become Rs. 3.05 cr shares through bonus & split?
· Why company needs to give bonus & stock split?
· What is Depository?
· Regulators of Share Market
· Why company needs to allot its shares?
· Ways of Fund raising
· What should one have to learn from companies like Infosys?
· Sector Analysis, Power, Automobile, Aviation, Oil & Gas, Retail, Telecommunication, Finance, Environment, etc.,
· Domestic & Global Economy Analysis,
· Circuit breaker
· Record Date
· What is Index?
· Who tell us market direction?
· What is short sell?
· What is stop loss?
· What is trailing stop loss?
· Types of orders
· How to operate broker’s terminal
· Online trading
· Difference between Intraday trading, Swing trading & positional trading
· Difference between Trading & Investment
· Who drives the prices of shares?
· Impact of Inflation on Share Market
· What RBI does to control inflation or to accelerate growth?
· Repo rate, Reverse Repo rate
· Impact of monitory policy on Share Market?
· Price Volume Formula
· Delivery based Volume & Prices of shares
· Important Websites for study
· How to apply all this practically?
· Sufficient number of practical to understand all this terms in an easiest way
· Portfolio Management
· Money Management
In this part the following topics will be covered in detailed:
· How to evaluate company?
· Price earnings ratio ( P/E )
· Which factors drive P/E ratio
· Price to Book Value
· Dividend Yield
· Stock Holding Patterns
· Order book position
· Future Planning of company
· EBITDA
· What is Debt equity ratio?
· What is ROCE?
· How to read Balance sheet/Profit & loss account/different ratios/Quarterly and Annual results
In this part the following topics will be covered in detailed:
· What is Technical Analysis?
· Basic Principles
· Importance of Technical Analysis
· What is Trend?
· Up trend, Down trend, Sideways trend
· Short term trend, Intermediate term trend &Long-term trend
· How trend forms?
· Types of chart?
· Line chart, Bar chart & Candlestick chart
· All chart Details
· Minute chart, Hourly chart, Daily chart, Weekly chart, Monthly chart
· How to use different timeframes at different time?
· Candle formation
· Understand the Candlestick Patterns in details
· Bullish & Bearish Candle
· Green Marubozu & Red Marubozu
· Hammer or Hanging Man
· Bullish Engulfing Pattern & Bearish Engulfing Pattern
· Morning star & Evening star
· What is Doji ?
· Bullish Doji star & Bearish Doji star
· Bullish Harami & Bearish Harami Pattern
· Spinning tops in up trend
· Spinning tops in Down Trend
· Inverted Hammer
· What is Trend line?
· How to draw Trend line?
· Trend Line as Support & Resistance
· Up Trend Channel & Down Trend Channel
· Head & Shoulder Reversal Pattern
· Inverted Head & Shoulder Reversal Pattern
· Double Top Reversal Pattern
· Triple Top Reversal Pattern
· Triple Bottom Reversal Pattern
· Ascending Triangle Pattern & Descending Triangle Pattern
· Symmetrical Triangle in Up trend
· Symmetrical Triangle in Down trend
· What is Breakout &Breakdown?
· How to use Volume?
· Price Volume Formula
· Volume & Trends
· Breakout, Breakdown & Volume
· Average Directional Index (ADX)
· How to red ADX?
· Moving Averages
· Simple Moving Average, Exponential Moving Average
· Moving Average Buy & Sell Signal & When to use this signal?
· MACD (Moving Average Convergence Divergence)
· When to use MACD buy & sell signals?
· Positive Divergence & Negative Divergence
· Relative Strength Index (RSI)
· RSI Oversold & Overbought Zone
· RSI Buy & Sell Signal & When to use this signal?
· Super trend
· Fibonacci Levels
· How to draw targets through Fibonacci?
· How to measure retracement in Uptrend as well as in Down trend through Fibonacci?
· How to predict prices using all this terms in a practical way?
· Sufficient practical to understand well
· How to calculate Pivot
· What is support &resistance?
In this part the following topics will be covered in detailed:
· What are derivatives?
· Why Derivatives?
· How to manage risk using derivatives?
· Types of derivatives
· Future & Option
· Call Option & Put Option
· Contract size, Lot size & Expiration
· What is Future contract?
· Why Future contract?
· Understanding through examples
· What is Hedging?
· How to hedge portfolio?
· Examples of hedging
· Difference between spot & future trading
· What is Open Interest?
· Price & Open Interest
· What is Option? What is option premium?
· What is Strike Price? Types of Strike Price?
· At the Money (ATM), In the Money (ITM) & Out of the Money (OTM) Strike Price
· What is Intrinsic Value & Time Value?
· Breakeven of Call & Put
· When to Buy Call option & When to Short Call option?
· When to buy Put option & When to Short Put option
· Difference between Option Buyer & Option Writer
· Which factors drive option premium?
· Volatility& Option premium
· Interest rate & Option premium
· Long Straddle & Short Straddle Strategy
· Long Strangle & Short Strangle Strategy
· Which Strategies is to use when price is expected to go up?
· Which Strategies is to use when price is expected to go down?
· Which strategies are to use when price is expected to remain flat?
· Which Strategies is to use when price will be volatile?
· Which Strategies to use when price is expected to go up moderately?
· Which Strategies to use when price is expected to go down moderately?
· Understanding all the Strategies through lot of Practical Examples
RISK AND REWARD MANAGEMENTS
· Risk management techniques.
· Three magical trade setup.
· Capital allocation.
· Minimizing risk with trade set up.