Welcome
To
Technical Research Program for Securities Market
Stock | Commodities | Currency
What is a qualification for this business
We need t h r e e m o s t i m p o r t a n t things for a professional trader.
q Knowledge (Observation & Confirmation)- Practice
q Patience
q Discipline.
Content
Chapter 1: Introduction of Securities Market
q Basic of share market
q Structure of Securities Market (Primary & Secondary)
Chapter 2: Fundamental Research for Investing
q Economic & Global News Vs Stock Market
q Company Research for Long Term Investment
1) Introduction to financial statement
2) Balance Sheet
3) Profit and Loss Account
4) Shareholder’s Equity
5) Basics of Cash flows
6) Financial statement analysis using ratios
7) Peer Comparison
8) Dividend and Bonus
Chapter 3: Technical Research (Pure Price Action)
q Candlestick Research
q How to work Indicators
q Price of Control Research
q Identify Demand & Supply levels
q Trend & Trend line Research and Dow theory - (Primary, Secondary, Short & Hourly)
q Fibonacci Tools complete research
q Identify Liquidity level
q How to identify Impulse Move before Breakout
q How to Identify Investors entry methods using Fibonacci tool
q Important Theory - Accumulation & Distribution, Elliot wave
q Time frame analysis
q Price Structure Research – It helps a lot for capital growth
Chapter 4: Trading Setup and Overall market Research through Technical
q How to make Swing Trading System
q How to make Intraday Trading System
q Stocks Selection for Swing & Intraday
q How to Properly set Stop loss & Stop loss method for one side market by using HNI’s
q How to Identify Market Crashes, Correction and Retracement through technical
q Gap Up & Gap Down Research
q India VIX – How it helps our Trading
Chapter 5: Spot and Derivatives Market
q How to work Spot and Future Market
q How to work Option Market
q Hedging type
Chapter 6: Money Management Research
q Importance of trading & Investing
q Proper Risk & Reward set through technical
q Importance of Stop loss
q How to Save your Investment
q Margin facility Research
Chapter 7: Trading Psychology Research
q How much Important of Trading psychology
q Important Don’ts Steps
q How to prepare Free Ming trading set up
q Probability, Investigation, know your Self, stay out of market, & Checklist.
Introduction of Stock Market
Securities are transferrable financial instruments or contracts that show evidence
of indebtedness or ownership interest in assets of an incorporated entity.
These include equity shares, preference shares, debentures, bonds and other
such instruments. These are issued by companies, financial institutions or the
government.
They are purchased by investors who have money to invest. Security ownership
allows investors to convert their savings into financial assets which provide a
return.
Broadly stating, Financial Market consists of:
o Investors (buyers of securities)
o Borrowers/Seekers of funds (sellers of securities)
o Intermediaries (providing the infrastructure to facilitate transfer of funds and
securities)
o Regulatory bodies (responsible for orderly development of the market)
Act
The term “securities” has been defined in the Section 2(h) of Securities Contracts
(Regulation) Act, 1956(SCRA).
Regulatory
The Securities and Exchange Board of India (SEBI) is the regulatory authority established
under the SEBI Act 1992 and is the principal regulator for Stock Exchanges in India.
Product Definitions / Terminology
Equity Shares
Indices
Mutual Fund Units
Commodities
Debentures/Bonds/Notes
Foreign currency bonds
External bonds / Masala bonds
Warrants and Convertible Warrants
Exchange Traded Funds (ETFs)
Hybrids/Structured Products..
Structure of Securities Market
Primary Market: The primary market, also called the new issue market, is where issuers raise
capital by issuing securities to investors. Fresh securities are issued in this market.
Secondary Market: The secondary market facilitates trades in already-issued securities,
thereby enabling investors to exit from an investment or new investors to buy the already
existing securities.
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Primary Market Secondary Market
Public Issue Over-The-Counter Market (OTC Market)
Initial Public Offer (IPO) Exchange Traded Markets (NSE, BSE, MCX,..)
Follow on Public Offer (FPO) Trading
Preferential Issue Clearing and Settlement
Rights and Bonus Issues Risk Management
Offer for Sale (OFS)
Primary Market
BSE
Secondary Market
BSE (Bombay Stock Exchange)
Tree 1850, Est. 1875, MCX (Multi Commodity Exchange)
Companies 5000+ (Est. 2003)
Metal & Oil
NSE (National Stock Exchange)
Est. 1992 ,
Companies 2000+
Market Intermediaries
Stock Exchanges
Depositories
Central Depository Services Limited (CDSL), and
National Securities Depository Limited (NSDL)
Trading Members (Brokers)
Clearing Corporation
Clearing Banks
Underwriters
Institutional Participants
Foreign Portfolio Investors (FPIs)
P-Note Participants
Mutual Funds
Insurance Companies
Pension Funds
Venture Capital Funds
Private Equity Firms
Hedge Funds
Alternative Investment Funds
Investment Advisers
Employee Provident Fund (EPF)
National Pension Scheme (NPS)
Corporate Treasuries
Retail Participants
The Secondary markets have two edges
D E M A N D a n d S U P P LY
>The fluctuating price of raw materials
>Changes in production technology
>Changing labour costs…… and a lot more
If more people are selling a stock, the stock price will fall.
If more people are buying a stock, the stock prices will rise.
Financial Instruments
There are typically three types of financial instruments:
Cash Instruments Derivative Instruments Foreign Exchange Instruments
Securities Underlying Assets Foreign exchange instruments
Deposits are financial instruments that
Loans Examples: are represented on the foreign
Futures market and primarily consist of
Option currency agreements and
Forwards derivatives.
Swaps
(Over the Counter)
Segment
Equity Commodity Agri Commodity Currency
(Stocks) (Metals & Oil) (Agriculture (Foreign Currencies)
An equity A product or Material) Currency trading,
investment material that can A product or often referred to as
is money that is be bought and material that can foreign exchange or
invested in a sold. be bought and sold. Forex, is the
company by purchasing and
purchasing shares Example: Example: selling of currencies
of that company in Gold, Sliver, Spices, Pulses, in the foreign
the stock market. Zinc, Aluminum, Cereals, Cotton , exchange
Crude oil, Rubber, wheat,.... marketplace, done
Example: Natural Gas… with the objective of
SBI Bank Stock, making profits.
JSW Steel Stock…
Traders position Types
Trader Holding Position
Scalping Trader Mints or Hour
Day Trader Within a day
BTST & Buy Today Sell Tomorrow &
STBT Sell Today Buy Tomorrow
Swing Trader Over a number of weeks or month.
Investors (or) Over a number of months or year.
Positional Trader
Fundamental of Research
Fundamental Technical Emotional Analysis
Analysis Analysis
Economic Technical analysts believe past Based on News
trading activity and price changes of
Industrial a security can be valuable indicators
of the security's future price
Company movements.
Chapter 1- Completed
