The document provides an overview of stock trading and how to get started. It discusses various ways to earn money and then dispels common myths about stock trading. It then covers the basics of companies and shares, stock exchanges and regulators. The remainder of the document outlines a 5 day course to learn about technical analysis, fundamentals, derivatives and golden rules for stock trading. It provides tips on paper trading, analyzing markets and using indicators like Bollinger bands to identify trading opportunities.

2. WHY ARE WE HERE?

3. DAY 1

4. • By working in a salaried employment
• By investing the surplus savings into bank
FD/ post office investment
• By running a chit fund
• By creating a petty business
• By working in part time
• By renting our properties/utilities
• Commissioning / Consulting
• ….

5. • Loss of employment, Loss of salary, Company Closure
• RBI policy in interest rates
• Defaulters of the chit money or fraudsters
• Threat of competition
• Not trust worthy- towards part time employees
• Structural damages, maintenance and defaulters
• Commissioning / Consulting availability
• ….

6. • Stock trading is completely legal
• All countries , religions allow it
• Whole process is visible to our eyes
• ….

7. • It is for people who can invest lakhs and crores - untrue
• All of our money suddenly gets lost - untrue
• The brokers will steal our money – untrue
• It requires lot of mathematical and analytical skills – untrue
• We need to dedicate and watch the market all the time- untrue
• With luck, we can become crorepathi in minutes –untrue
• We need fluency in English –untrue
• We need commerce background like B.com, M.B.A - untrue
• Initial entry to stock trading is a hectic process - untrue
• ….

8. • Company – Investment- stakeholders
• Private- Listed company
• Stocks-Shares
• Markets – BSE-NSE
• SEBI
• Difference between Investment and Trading
• Trading stocks, commodities, currencies, IPOs, Mutual Funds,
SIP
• Futures and Options Trading
• Kick off steps

9. • A company is a voluntary association of persons recognised by
law, having a distinctive name and common seal, formed to carry
on business for profit
• The company should be registered in the respective country as
per the country’s company law.
• The persons who invested the money and efforts are called
investors /stakeholders

10. • When the stakeholders completely own the company by not allowing
any other to invest in it – can be called as a Private company.
• When the stakeholders divide the company’s values into shares and
let others to buy or sell those shares, then it is a listed company.

11. • All these words are synonymous , describing the value of the
company. Since the value will be huge in numbers, the value is
divided into small units usually at a price value of 10 Rs.
• For example, a company with 1 crore NPV(Net Present Value) will be
divided into 10 lakh shares 10 Rs each.
• Usually the stakeholder, who started the company, hold more than
49% shares to keep holding, and the remaining shares are traded.

12. • Markets are the officially designated places to sell and buy shares.
• Bombay Stock Exchange(BSE), National Stock Exchange(NSE) are
the important stock markets in our country
• Prior to technology evolvement, all share trading happened here,
and now the powerful computer servers of these markets handle the
robust business
• Markets will have two indicators – Bullish (positive direction), and
Bearish (negative direction)

13. • Stock Exchange Bureau of India is the controller of the entire stock
markets in the country
• SEBI monitors all transactions
• SEBI penalises all invalid transactions
• SEBI introduces and manages the policies and laws

14. • Investment – saving for future with the surplus money we have.
Short term – Completing In weeks
Mid term – In Months
Long term – In Years
• Trading – its like a regular work, doing transactions and make a living.
• Day trading – completing the trading the same day
• Swing trading –waiting for the correct trend and trade
• Positional trading – waiting for the right time and trade

15. • Trading/Investment in Equities
Buying and selling only shares of listed companies.
• Trading/Investment in Commodities.
Buying and selling commodities like Oil, Gold, Pulses, Grains
• Trading/Investment in Currencies (exchange)
Buying and selling rupees of various countries, and other electronic
currencies like bit coins

16. • Smartphone / Laptop – to do the daily trading
• PAN card – Government norms
• Bank account – source account to get the money and return
• Demat account – Electronic storage place of our share documents
• Brokerage account – Who help us to do trading with markets

17. DAY 2

18. A LOOK AT THE MARKET -TECHNICAL

19. A LOOK AT THE MARKET -TECHNICAL
• Market Timings and the volatility
• SENSEX, NIFTY – Introduction
• Indices explanation – sectoral indices
• Difference between stocks and indices
• Bull-Bear explanations
• Important terms – call, short, profit booking, short build up, long unwinding…
• Lot sizes
• Intra Day, Delivery
• Limit, Stop Loss,Cover Order, After Market Order
• T+1, T+2…

20. A LOOK AT THE MARKET -TECHNICAL
• Types of Charts
• Candle sticks explanation
• Candle to look out for – Hammer, doji, hanging man…
• Pattern to look out – side way, double bottom, falling three…
• Studies – RSI, Stochastic, Bollinger Bands…
• Live pattern finding Q/A

21. DAY 3

22. A LOOK AT THE MARKET -FUNDAMENDAL
• Company’s past performance analysis in terms of EPS
• Company’s financial performance analysis
• Company’s shareholding pattern
• FII-DII investment pattern
• Corporate Actions
• SWOT

23. A LOOK AT THE MARKET -FUNDAMENTALS
• https://www.nseindia.com/
• https://in.investing.com/
• https://www.moneycontrol.com/
• https://www.screener.in/
• https://trendlyne.com

24. DAY 4

25. DERIVATIVES
• Future contracts
• Options contracts – Strike price , Spot price, OI, Volume
• CALL & PUT , Greeks
• Detailed Options Trading
• Sample paper trading

26. DAY 5

27. GOLDEN RULES
• Never trade with the money which is not surplus
• Never trust any person’s advice in trading- do your own analysis
• Don’t get duped by fake advertisements , fake news, and videos circulated
• Be prepared to limit your losses by exiting early
• There are opportunities for trading every minute, one loss can be overcome by a profit
from other trade.
• Set the profit loss ratio to be 3:1 for the better outcome
• Skip trading from 9.15 to 9.45 initially as the market will be highly volatile

28. ROUTINE TO FOLLOW
Spare 30 minutes in advance to check the following
Previous day close of US and European markets
Current trend in Asian Markets specifically Japan.
If all are bullish, Indian markets to go bullish 80%
Check for news about the companies that you are interested by visiting the sites
mentioned, positive and negative news impact the daily trend
Check the general news such as Government Budgets, RBI rates, Calamities, major
accidents, border issues… these impact the market at greater level

29. DO THE PAPER WORK
Do at least 50 trades before putting any money into the market
Prepare a P&L statement from your paper trading, and repeat the paper trade until
you get an average P&L with 3:1 ratio
Never ever blindly trade or based on just instinct

30. THE TRICK – WITH RISK
Set up your charts to display Bollinger bonds, RSI, and moving average.
If you are sure that a stock is going for bullish, choose the correct call option with lot of
open interest with the lot price falling within your budget, and the put for bearish.
Buy the trade when the candles bounce back(green) after touching the Bollinger lower
range (call option), and the higher range for put option.
As soon as the candles touch the other end, sell it. Don’t regret if the range extends,
there are lots of other opportunities.
If you had chosen the stocks with high volatility, the Bollinger range to be wider and
thus providing higher return.

31. THE TRICK – WITH LOWER RISK
Hedging – When you buy a call option at strike price, buying a put option for the same
stock, this will reduce the losses , and the gain will also be limited.