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Share Market Trading


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The terms investing and trading have come to mean the length of time that one intends to hold on to stock. Today, the terms investing and trading are used almost interchangeably---with the distinction of time. One is "investing" if the shareholder intends to hold for a long period of time the other is "trading" if the stock is held for a very short period of time. Most market participants consider themselves to be "investors." But if you look at a list of the really big winners on Wall Street, you will see that most of those who make big profits, list themselves as "traders." Investors "Investors" put their money into stocks, real estate, etc., under the assumption that over time, the underlying investment will increase in value, and the investment will be profitable. Typically, investors do not have a plan for what to do if the investment decreases in value. They hold onto the investment in hopes it will bounce back and again become a winner. Investors anticipate declining markets with fear and anxiety, but usually do not plan ahead of time how they will respond to them. When faced with a declining (bear) market, they hold their positions and continue to lose. In many cases it is investors who realize how dangerous buy-and-hold investing can be to their savings. They do have some knowledge of trading. But that knowledge is tainted by how it is all too often described in the financial press that trading is risky, dangerous, foolish, bad, involves a great deal of work, etc.
Traders On the other hand "traders" take a proactive approach to their investing. They have a defined plan and invest with one goal, to put their capital into the markets and "profit." They also trade with a plan that tells them what to do in any situation, when to enter and when to exit. They never allow large losses. Much successive stock runs can outperform even the best long-term investment strategies. Unlike long-term investing, successful trading produces cash flow---small, repetitive trades, though each resulting in small gains, will add up to very large return. Trading does not mean you must move in and out of the markets frequently. This is a common misconception. A trader simply is one who has a plan for entering and exiting. They know what to do if their trade goes against them, and they know what to do when their trade is profitable. Even in bear markets, an experienced trader can catch the edges of volatile stocks and pile up almost shocking returns. Meanwhile, the long-term investor suffers through agonizing corrections or, at best, sideways no-gain market. Investing or Trading should be treated as business with a plan.

Share Market Trading

  1. 1. UNIVERSAL TRADING & TRAINING ACADEMY 25 Manakula Vinayagar Kovil Street, Puducherry – 605001. 999 423 39 39 ; 868 085 05 16 Email- ©Universal Trading & Training Academy
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  3. 3. OUR JOURNEY ©Universal Trading & Training Academy
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  8. 8. What is Market Buying and Selling of goods Buyers meet the sellers Exchange of Goods Sellers meet the buyers (Eg: Fish Market, Vegetable Martket) ©Universal Trading & Training Academy
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  10. 10. Major International Indices World • Morgan Stanley (EAFE) Country • Japan – Nikkei 225, Nikkei 300, Topix • UK – FTSE 100, FTSE 250 • Germany – DAX • France – CAC • Hong Kong – Hang Seng • Canada – Toronto 300 Composite ©Universal Trading & Training Academy
  11. 11. INDIAN STOCK MARKETS ©Universal Trading & Training Academy
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  13. 13. What is Stock Market? A stock market is a place where the stocks and securities of various companies are traded. “Stock exchange” - means anybody of individuals, whether incorporated or not, constituted for the purpose of assisting, regulating or controlling the business of buying, selling or dealing in securities. ©Universal Trading & Training Academy
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  15. 15. Issue of Shares ©Universal Trading & Training Academy
  16. 16. Two major Stock Market BOMBAY STOCK EXCHANGE NATIONAL STOCK EXCHANGE ©Universal Trading & Training Academy
  17. 17. Major Index in India NCDEX NIFTY SENSEX MCX Top 50 Companies Top 30 Companies Gold, Silver, Zinc… CURRENCY Crude, Copper, Plantation Crops USD, JPG,E RU ©Universal Trading & Training Academy
  18. 18. Psychology of Traders Fear of “LOSS” Winning Ratio – 98% Loss & 2% Winners Buying at high levels and Selling at low levels News based Entries ©Universal Trading & Training Academy
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  20. 20. What we do in our market? • Buy Entries • Sell Entries We are the mediators in the Market called as “Brokers” ©Universal Trading & Training Academy
  21. 21. Basis of Market • • • • • • Demand – Buying Opportunities Supply – Selling Opportunities Support – Buying Opportunities Resistance – Selling Opportunities FII – Foreign Institutional Investors DII – Domestic Institutional Investors FII’s are the Rulers of the Market and DII’s are the Losers of the Market ©Universal Trading & Training Academy
  22. 22. What is Buy? Buying of Shares in a motive to sell at high Price. ©Universal Trading & Training Academy
  23. 23. What is Sell? Selling the shares to incur profit which is being bought at the lower level ©Universal Trading & Training Academy
  24. 24. Short Selling A way to “bet” that a security will fall in value Economic value of short selling Borrow the security and sell it Limit upward bias ©Universal Trading & Training Academy
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  27. 27. Types of Orders Market order an order for the broker and market specialist to transact at the best price available when the order reaches the post Limit order an order to transact at a specified price (the limit price) ©Universal Trading & Training Academy
  28. 28. Stop Loss Order Restrict the Loss on a particular Trade. Giving an entry for the higher level price or at the lower level price from the current market price. ©Universal Trading & Training Academy
  29. 29. Strategies Fundamental Technical ©Universal Trading & Training Academy
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  31. 31. Analysis of Trading • Intraday • Position • News Based Advantages and Disadvantages ©Universal Trading & Training Academy
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  33. 33. Brokerage Structure .02 .03 (Own Risk) Intraday (Our Risk) Intraday .015 (Commodity) ©Universal Trading & Training Academy .5 (Position)
  34. 34. Hit Ratio 16 out of 20 calls is our Winning Ratio Rs.1000 Rs.2300 Rs.4000 Stop Loss is our 1st Target is our 2nd Target is our 3rd Target is Rs1700 to Rs2000 ©Universal Trading & Training Academy
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  36. 36. What we do for our Customer? • 1 month • 3 month • 6 month • 1 Year Tips – Rs.5,000 – Rs.13,500 – Rs.25,000 - Rs.50,000 • Fundamental Classes Rs.2,000 • Technical Classes • Level 1 (Rs.5,000) • Level 2 (Rs.10,000) • Level 3 (Rs.15,000) Trading Classes – Technical & Fundamental ©Universal Trading & Training Academy
  37. 37. How to open an Account? Documents Needed: ©Universal Trading & Training Academy • Income Statement for 6 months • Driving License • Pan Card • 2 Photos
  38. 38. OPPORTUNITIES WITH UTTA Refer a friend who can trade for the whole month and get Rs.1000 as the Gift for 15 Calls and Rs.500 as a Gift for 10 Calls. Refer 15 members and get Rs15,000 in your Account and start your Free Trading. Free Training Module and Videos. ©Universal Trading & Training Academy Free Software's guidance from Website.
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  41. 41. Advices for trading • • • • • • • • Paper Trade Follow your profit with strict “STOP LOSS” Never Chase any Stocks. Buy at lower level and Sell at higher level. Don’t get fear at anytime of trading Don’t trade on news based market with DATA’s Never average a losing trade Never buy and sell for full amount in one go, spread it across a range, it will give much better bottoms and tops ©Universal Trading & Training Academy
  42. 42. “Do what you’re passionate about. If you do this, there will be few people competing or running faster than you.” - Warren Buffett Thank You ©Universal Trading & Training Academy
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