Financial Markets:
Farmer's Marketplace:
Farmer -> Seller -> Vegetables, Fruits
Consumer -> Buyer -> Vegetables, fruits
Product : Vegetables , Fish , Wood
Financial Marketplace:
Product: Securities (Any type of fin. instrumnet - FDs, Bonds, Stocks, Crypto)
Stocks / Shares of companies
- Equity market or Stock Market
Equity - ownership
9:15am to 3:30pm
Fixed-Income Market/ Bond Market/ Debt Market
- Fixed Deposits
- Safe
- 1L ; INterest rate - 6% => Rs 6000 profit
- Taxable
Bonds:
1) Government Security bonds (G-sec)
- NHAI
- Interest rate - 9-10%
- Tax-free
- Safest
https://www.thefixedincome.com/
2) Corporate Bonds
- Interest Rate - 11-12%
- Taxable
www.wintwealth.com
3) Forex Market - Currencies (USD/INR, USD/EUR)
Internation market - $5 Trillion
24 Hrs * 5 (Mon - Fri)
4) Crypto Market - ETH, BTC, BNB, matic
24 HRs *7 (Sat&Sun)
5) Commodities
Gold, Aluminum, Silver, natural Gas, crudeoil
9:15am to 11:30pm
6) Derivatives ( Futures & Options )
- High risk High reward
Avoid this market
Equity Market -> Learn how to trade -> Practice trade setups -> Risk Management ->
Profitable
Shopping cart - Portfolio - your collection of stocks
Stock Exchange : Supermarket
Index - A collection of stocks
Nifty 50 - Top 50 companies by market cap across different industries
Market Cap -> Market value of a company
- Total number of shares * price
Large Cap: [Blue-chip]
- If the market cap is greater than 30,000 Cr
- Established companies
- Safer invetments
- Avg ~15% p.a
- Wealth Preservation
Aggressive Stocks: Wealth Creation
Mid Cap:
- IF the market cap is between 5000 Cr and 30,000Cr
- Growing companies
- Avg returns of 25% p.a
- Risk is higher
Small Cap: (Penny Stocks)
- If the market cap is less than 5000Cr
- Small companies
- Avg returns ~35% p.a
- Risk is highest
Risk Profiling:
If you are above 18 -35 years , you have a high risk apettite,
Wealth Creation: 70% - Mid & Small Cap ; 30% Large Cap
If you are above 50 years of age, you have a low risk apettite,
65-75% => Bond Market
25% => Stock Market (70% - Large cap ; 30% - Mid & Small cap)
Myth #1:
If the company is really good, it will always go up in price
Truth:
Rule -80:50
Any stocks that has moved up really well, it has a 80% chance that it will crash by
50% from the top
- there's also a 50% chance that it will crash by 80% from the top
- Momentum Investing - Buy and hold until the trend changes
Myth #2:
Impossible to time the market
Institutional Investors: Trading
-> How does the stock price move up or down?
- > Buyers -> Bulls -> Demand -> Buying pressure -> Price moves up
Bulls push the price up
-> Sellers -> Bears -> Supply -> Selling pressure -> Price moves down
Bears push the price down
Bull vs Bear
Bull markets
- 1st 80-100% ; 2nd - 50% - 3rd - -15%
- Avg duration of bull markets - 2.5 years
Bear Markets
- Stocks crash 20%; 50% ;80%
- Avg duration of bear market - 9 months
The Big Short
Over long term, Bulls always beat the markets
Passive Investor:
- Buy & Hold & Forget
- Buy Nifty 50 Index Funds
SIP ; Systematic Investment Plan
500 Rs
Moderately Passive Investor:
-> Sectoral - Nifty IT; Nifty auto - > Stay away from them
-> LArge cap funds - 90% fail to beat nifty 50
1L
25% - UTI Nifty 50 Index Fund [ large cap ]
25% - PGIM India Midcap Opportunity Fund
25% - Quant Small cap fund
15% - US Markets
5% - Vangurd S&P 500 ETF
5% - Invesco Global Clean Energy Fund
5% - iShares Semiconductors ETF
10% - CRYPTO (ETH, MATIC, MANA, SAND, GALA)
binance.com
deltaexchange
Active Investing:
Fundamental Analysis:
1) Theme : Green Energy, EV, Waste management , Transportation , Infrastracture,
Defence, Healthcare, Space tech
2) Sector: Solar, Wind, Hygrogen
3) Stocks :
www.trendlyne.com
Durability - Fin. strength
Valuation -
Price to Book Value >1 = Overvalued
< 1 => undervalued
Overvalued /Undervalued
Market value ;
Real value /Book value - Intrinsic Value
- Rs 100 per share
Markt value Rs 70 > Book value => Undervalued
Value Investing : Warren Buffet
Red -> Overvalued
green -> Undervalued
Momentum
forex: exness.com
$10,000 - $200,000 : fundednext.com
USD/INR
Actve Investing / Trading :
Postional trading : - Buy and hold for 6month - 2years
Rules:
1)Invest upto 10-15-20% per stock
2) You will have at least 6-10 stocks
2 of them hit a small loss
2 of them would be small gain
2 of them would be multibagger
70% - Mid & Small ; 30 % Large Cap
3) Max loss in a stock should be 8%
8% => 8.1% gain
1L
10% => 90k -> 1L => 11%
20% => 80k -> 1L => 25%
50% => 50k -> 1L => 100%
90% => 10k - 1L => 900%
Hold on to your winner, and cut your losers short.
4) which stocks to buy?
Positional :
We'll be using the 1 Week Tf for analysis ; 1D
Swing Traders : Buy and hold 1-2 weeks
1Hr time frame; 30mins TF
Intraday traders:
30min time frame ; 5mins TF for entry
Trend-Following - Positional Strategies
-> Never ever invest in a downtrend
-> Only invest if the stock is a confirmed uptrend
HH_HL_HH => 3 Layer confirmation
LH_LL_LH => 3 layer conf. for downtrend
-> Buy the dip happens only in uptrend
Research Team - Sectors -> Theme - > Fundamental
Traders Team - Technicals -> HH_HL_HH => they put in
