stock market for begineers
Post on 20-Oct-2014
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Stock Market for BeginnersTRANSCRIPT
FinWiz
Gaurav Sharma8800826254
Stock Market for Beginners
Agenda
• Share market basics• Terminology• How to Trade• Practice on virtual terminal• Doubt clearing
Share market : Buying and selling of shares is done
Share market basics
Major Stock exchanges In India
NSE(National Stock Exchange) It is the largest stock exchange in India in terms of daily turnover and number of trades, for both equities
and derivative trading NSE.(9:00 to 3:30)NIFTY
BSE( Bombay Stock Exchange) It is the oldest stock exchange in Asia and has the largest number of listed stocks. It is located at Dalal
Street, Mumbai.(9:00 to 3:30)SENSEX
MCX(Multi Commodity Exchange of India Ltd.)Silver ,Gold, Copper & Natural Gas and Crude Oil
(10:00 to 11:30) MCX
Why to invest in stock market?
•You want to maximise your returns.
•You want to beat inflation.
How to invest in stock market?
Brokers
A broker is a party that mediates between a buyer and
a seller. A stock broker or
stockbroker is a regulated professional broker who buys
and sells shares and other securities through agency
firms on behalf of investors.
Renowned online stock brokers in India
Demat accountThe term Demat, in India, refers to a dematerialized account.
In a Demat account shares and securities are held in electronic form instead of taking actual possession of certificates.
1:Open a Demat account
2:Attach with Broker or sub-broker
3:A computer terminal with ODIN
software
4:Get User name and password
5:Login and trade shares
6:Buy Or Sell
8: Buy ,share moves to Demat
7:Sell, Shares moves out of
Demat
Flow chart
Index
• Mirror of the market• How the top companies are performing• Calculated by assigning weights to specific
securities.Examples:Nifty 50 , Sensex , Bank Nifty, etc
1 MARUTI 11 RCOM 21 DRREDDY 31 CAIRN 41 HDFCBANK
2 BHEL 12 HINDUNILVR 22 JINDALSTEL 32 SIEMENS 42 TATASTEEL
3 DLF 13 ACC 23 SBIN 33 POWERGRID 43 RELINFRA
4 BHARTIARTL 14 WIPRO 24 AMBUJACEM 34 TATAPOWER 44 RELIANCE
5 ITC 15 HCLTECH 25 ONGC 35 IDFC 45 BPCL
6 GRASIM 16 M&M 26 TATAMOTORS 36 SESAGOA 46 COALINDIA
7 ICICIBANK 17 BAJAJ-AUTO 27 LT 37 GAIL 47 KOTAKBANK
8 PNB 18 HDFC 28 JPASSOCIAT 38 RANBAXY 48 HEROMOTOCO
9 CIPLA 19 INFY 29 NTPC 39 AXISBANK 49 HINDALCO
10 RPOWER 20 SAIL 30 TCS 40 SUNPHARMA 50 STER
NIFTY 50 COMPANIES
Bull Market
Bear Market
How Does Trading Terminal Look Like ?
Trading Terminologies
Delivery Vs Day Trading
• When you purchase stocks with the purpose to hold them for more than a day is termed as Delivery trading.
• When you buy or sell stocks for intraday with an obligation to square off your position in the market on the same day is known as Day trading.
Price
• Last trading price• Open price• Close price• Day high• Day low• 52 week high/low
Order & Trade
• Order: Bids you are putting into terminal.
• Trade: Bids which are executed.
To enter a buy order
To enter a Sell order
Important Terms
• Market Price• Limit Price• Margin• Short Selling• Short Covering• Stop Loss
Basis of Trading
• Fundamental basis:Analysing company accounts, business profitability by using ratios like EPS, PE, Book value to PE etc.
• Technical basis: Analyzing the historical price movements on the
charts for identifying patterns in share prices.
`Questions & Answers
Thank you.
5 Ways Of Growing Money
• Business
• Real Estate
• Give Loan To Some One
• Invest In Bank, Post Office
• Invest In Securities ( Share Market)
Order
Market price
Intraday