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A short description on share market. For more details visit http://www.proficientgroup.in/
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What to expect? • What is Stock? • How trading happens? • How to trade in stocks? • Kinds of Trades • Basic Terms and terminologies
What to expect? • What is Stock? • How trading happens? • How to trade in stocks? • Kinds of Trades • Basic Terms and terminologies What not to Expect • Technical indicators • Strategies • Futures and options
What is a Stock • It’s a means to own a company. • It is a kind of security.
Prerequisites for Trading • We need to have DP (DEPOSITORY PARTICIPANT) account. • We need to have a Trading account. • And of course money
How Trading Happens? Stock Exchange Ex : NSE,BSE
What is fundamental Analysis? • Analyzing a stock based on the fundaments of the country, the sector, and the company individually. • It includes going through balance sheet and profit-loss statement of the individual company and checking various ratios.
3 Important Ratios • EPS : PAT – Dividend/ No of shares • PE : Present share Price / EPS • P/BV Present share price / Book value
What is Technical analysis • Forecasting the future direction of prices through the study of past market data, primarily price and volume. In its purest form, technical analysis considers only the actual price and volume behavior of the market or instrument.
Basic definitions in Technical analysis • Support : Where one buys • Resistance : Where one sells
A Brief into Primary Market • PE Firms • QIP, HNI, Retail • Fixed Price and Book Building Process • Lower band and Upper Band and Cut off price • Lot size
Tips for primary market • Please Read DRHP • Read about the promoter's group. • Understand their business, and compare with others • ADR • GDR • Market Cap • Dividend • Buy Back • Bonus • Split • Rights issue • Record Date • Non Delivery Period
What is an Index • What is NIFTY, SENSEX • How are they Calculated?
Tips: • Always follow strict entry and exit points • Always execute a limit order • Never buy and sell for full amount in one go, • Never average a losing trade