A Journey into Stock Markets By Trilok H G

What is Stock? How trading happens? How to trade in stocks? Kinds of Trades Basic Terms and terminologies By Trilok H G

What is Stock?

How trading happens?

How to trade in stocks?

Kinds of Trades

Basic Terms and terminologies

Technical indicators Strategies Futures and options By Trilok H G

Technical indicators

Strategies

Futures and options

It’s a means to own a company. It is a kind of security. (The definition of ‘Securities’ as per the Securities Contracts Regulation Act (SCRA), 1956, includes instruments such as shares, bonds, scrips, stocks or other marketable securities of similar nature in or of any incorporate company or body corporate, government securities, derivatives of securities, units of collective investment scheme, interest and rights in securities, security receipt or any other instruments so declared by the Central Government.) By Trilok H G

It’s a means to own a company.

It is a kind of security.

(The definition of ‘Securities’ as per the Securities Contracts Regulation Act (SCRA), 1956, includes instruments such as shares, bonds, scrips, stocks or

other marketable securities of similar nature in or of any incorporate company or body corporate, government securities, derivatives of securities, units of collective investment scheme, interest and rights in securities, security receipt or any other instruments so declared by the Central Government.)

We need to have DP(DEPOSITORY PARTICIPANT) account. We need to have a Trading account. And of course money  By Trilok H G

We need to have DP(DEPOSITORY PARTICIPANT) account.

We need to have a Trading account.

And of course money 

By Trilok H G Stock Exchange Ex : NSE,BSE People using terminal provided by their brokers

Ones which are listed in that exchange IPO Secondary market ADR, GDR in foreign markets More of IPO later… By Trilok H G

Ones which are listed in that exchange

IPO

Secondary market

ADR, GDR in foreign markets

More of IPO later…

Intra-day Trading Delivery based Trading By Trilok H G

Intra-day Trading

Delivery based Trading

Buying and Selling on the same day Brokerage will be different for intra-day and delivery based trading, intra-day being lesser By Trilok H G

Buying and Selling on the same day

Brokerage will be different for intra-day and delivery based trading, intra-day being lesser

Buying and Selling are on different days Brokerage will be higher than intra-day Their will be minimum delivery charges By Trilok H G

Buying and Selling are on different days

Brokerage will be higher than intra-day

Their will be minimum delivery charges

Ex : You buy the share on Monday. It will be delivered to you on Wednesday’s settlement period (T + 2) normally. By Trilok H G

Ex :

You buy the share on Monday.

It will be delivered to you on Wednesday’s

settlement period (T + 2) normally.

Selling something which you don’t have. Ex: Lets consider a company RIL. Its priced at Rs 2,500/- before opening. You know it’s going to fall that day because of some reason. But you don’t have any shares with you of RIL. But still you can sell the shares, this is called as short selling. By Trilok H G

Selling something which you don’t have.

Ex: Lets consider a company RIL.

Its priced at Rs 2,500/- before opening. You know it’s going to fall that day because of some

reason. But you don’t have any shares with you of RIL.

But still you can sell the shares, this is called as short selling.

Contd… Assume you sold 10 RIL shares in morning at Rs 2,500/-. By evening as you had thought, it had Fallen down to Rs 2,400/-. Now you buy back Those 10 shares what you had sold. So the difference in amount, 2,500 – 2,400 = 100 100 * 10 = 1000, is yours. This process of buying back is called short covering. By Trilok H G

Contd…

Assume you sold 10 RIL shares in morning at

Rs 2,500/-. By evening as you had thought, it had

Fallen down to Rs 2,400/-. Now you buy back

Those 10 shares what you had sold.

So the difference in amount, 2,500 – 2,400 = 100

100 * 10 = 1000, is yours. This process of buying

back is called short covering.

You will become a defaulter. Lets understand this with an Example. Assume you short sold on Monday, as you haven’t short covered it, you need to deliver it on Wednesday(T + 2). But you don’t have the shares to deliver. So NSE or BSE will buy the shares on behalf of you in auction market, and deliver it to the buyer in (T + 3 days). In auction market max price is 10% higher than in normal market. By Trilok H G

You will become a defaulter.

Lets understand this with an Example.

Assume you short sold on Monday, as you haven’t short covered it, you need to deliver it on Wednesday(T + 2). But you don’t have the shares to deliver. So NSE or BSE will buy the shares on behalf of you in auction market, and deliver it to the buyer in (T + 3 days). In auction market max price is 10% higher than in normal market.

Assume Ram bought on Monday 100 shares of RIL at Rs 2,500/- , on response to some good news it rose high on Tuesday to say Rs 2,600/-. So Ram is in a whooping profit of (100 * 100) Rs 10,000/- in a day. Ram plans to sell it. Will he get that profit for sure? By Trilok H G

Assume Ram bought on Monday 100 shares of

RIL at Rs 2,500/- , on response to some good

news it rose high on Tuesday to say Rs 2,600/-.

So Ram is in a whooping profit of (100 * 100)

Rs 10,000/- in a day.

Ram plans to sell it.

Will he get that profit for sure?

Monday : Ram bought stocks Tuesday : Ram sold stocks Wednesday: Stocks wont get delivered to him, as they were short sold. Thursday: Ram needs to deliver the stocks, as he has sold on Tuesday, But he don’t have Them now, as they were short sold, So he becomes a defaulter. Friday : Ram gets the delivery of short sold stocks By Trilok H G

Monday : Ram bought stocks

Tuesday : Ram sold stocks

Wednesday: Stocks wont get delivered to him,

as they were short sold.

Thursday: Ram needs to deliver the stocks, as he

has sold on Tuesday, But he don’t have

Them now, as they were short sold,

So he becomes a defaulter.

Friday : Ram gets the delivery of short sold stocks

By Trilok H G DAY PRICE Monday 2500 Tuesday 2600 Wednesday 2620 Thursday 2670 Friday 2550

Ram actually ended up in loss!!! ( I was a victim of such a trade when I executed my 2 nd trade 2 years back  ) By Trilok H G

Ram actually ended up in loss!!!

( I was a victim of such a trade when I executed my 2 nd trade 2 years back  )

Fundamental Analysis Technical Analysis By Trilok H G

Fundamental Analysis

Technical 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. By Trilok H G

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.

EPS : PAT – Dividend/ No of shares PE : Present share Price / EPS P/BV Present share price / Book value By Trilok H G

EPS : PAT – Dividend/ No of shares

PE : Present share Price / EPS

P/BV Present share price / Book value

Example : Enron, Satyam IT industry off recent By Trilok H G

Example : Enron, Satyam

IT industry off recent

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. By Trilok H G

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.

Support : Where one buys Resistance : Where one sells Some Examples… By Trilok H G

Support : Where one buys

Resistance : Where one sells

Some Examples…

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 By Trilok H G

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

Face Value Premium By Trilok H G

Face Value

Premium

Please Read DRHP Read about the promoter's group. Understand their business, and compare them With the companies listed already in market By Trilok H G

Please Read DRHP

Read about the promoter's group.

Understand their business, and compare them

With the companies listed already in market

ADR , GDR Market Cap Dividend By Trilok H G

ADR , GDR

Market Cap

Dividend

Buy Back Bonus Split Rights issue Record Date Non Delivery Period By Trilok H G

Buy Back

Bonus

Split

Rights issue

Record Date

Non Delivery Period

What is NIFTY, SENSEX How are they Calculated? By Trilok H G

What is NIFTY, SENSEX

How are they Calculated?

Execute couple of paper trades before you actually execute the real trade, we have many simulators and games available now Always follow strict entry and exit points Always execute a limit order Never buy and sell for full amount in one go, Spread it across a range, it will give much better bottoms and tops Never average a losing trade By Trilok H G

Execute couple of paper trades before you actually execute the real trade, we have many simulators and games available now

Always follow strict entry and exit points

Always execute a limit order

Never buy and sell for full amount in one go,

Spread it across a range, it will give much better bottoms and tops

Never average a losing trade

Q & A By Trilok H G

Q & A

HAPPY TRADING By Trilok H G

HAPPY TRADING