Agenda• Share market basics• Terminology• How to Trade• Practice on virtual terminal• Doubt clearing
Share market basicsShare market : Buying and selling ofshares is done
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 thelargest 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 instock market?•You want tomaximise yourreturns.•You want to beatinflation.
BrokersA broker is a party thatmediates between a buyer and a seller. A stock broker orstockbroker is a regulated professional broker who buys and sells shares and other securities throughagency firms on behalf of investors.
Demat accountThe term Demat, in India, refers to a dematerializedaccount.In a Demat account shares and securities are held inelectronic form instead of taking actual possession ofcertificates.
3:A computer1:Open a Demat 2:Attach with Broker terminal with ODIN account or sub-broker software 4:Get User name and password 5:Login and trade shares 8: Buy ,share 7:Sell, Shares 6:Buy Or moves out of moves to Sell Demat Demat
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
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.
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.