Basic Syllabus For Stock Market (For Beginners)
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Three Things You need
1) Observation Skills
It is self explanatory. We can train our eyes. But some are born curious and they will always have an edge on these things. But we can always become alert and look around. Same goes with Chart reading skills, correlating product popularity and stock picking impulses, different styles and quickly adapting new styles. Unfortunately I don’t know, how to explain it.
2) Technical Analysis
Candlestick Patterns (https://zerodha.com/varsity/chapter/getting-sta...)
Support and Resistance (Supply/ Demand Zones) # https://www.investopedia.com/trading/support-an...
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https://zerodha.com/varsity/chapter/support-res...
Indicators
Two types of indicators are there
1) Leading They predict future outcome by mathematical calculation. They show results earlier than events are triggered, hence is the name.
Example: Price (You heard it right. Some patterns now predict the future. Basically we use candlestick patterns for this only)
Fibonacci retracements, Chanels, Support and Resistance levels, Stochastic Momentum Index, William %r (very underrated in Indian market), RSI, https://www.dailyfx.com/education/technical-ana...
2) Lagging They predict future outcome by mathematical calculation of past data available.
Example: Moving Averages(both simple and exponential, hybrid when we use Moving average crossovers), MACD etc.
Moving Averages # https://www.investopedia.com/articles/active-tr... -
https://zerodha.com/varsity/chapter/moving-ave....
MACD - https://zerodha.com/varsity/chapter/indicators-...
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https://www.investopedia.com/terms/m/ma...sp
RSI - https://www.investopedia.com/terms/r/r...sp
- https://school.stockcharts.com/doku.php?id=tech...
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https://zerodha.com/varsity/chapter/indicators-...
VWAP - https://www.investopedia.com/terms/v/vw...sp
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https://zerodha.com/varsity/chapter/supplementa...
Honorable mentions Parabolic SAR, William %R(I personally use it), RSI divergence, Stochastic Momentum Index
Fibonacci retracements - https://www.investopedia.com/ask/answers/05/fib...
- https://www.investopedia.com/articles/active-tr...
- https://zerodha.com/varsity/chapter/fibonacci-r...
3) Fundamental Analysis
"@BubbleBoyChickenLittle":https://www.desidime.com/users/1059107 bhai since you are a CA student, if you could comment about it then it will be really amazing.
okay. We will handle this thing mathematically as things become real boring while reading.
https://ticker.finolo...n/ open this
then watch this
Actually Pranjal Kamra is founder of Finology. He has explained different ratios.
That is half work done
Next is
https://www.tickerta...n/
Zerodha also explained different mathematical approaches to Fundamental analysis for objective analysis here.
Next is Annual Report
It is a tutorial for how to read a balance sheet, an initiative by Zerodha. 1 hour duration. Watch it.
Next is two beautiful videos explaining Global Macros.
P/L statement reading
Individual sector analysis and product popularity. Just google about it. Then you will get to know a lot about it.
https://www.moneycontrol.com/stocks/marketinfo/...
is an exhaustive list of stocks categorized into different sectors. I started my career from fertilisers. The stock I chose has already been delisted haha.
https://www.screener.in/sc...s/ is a good source to see different stocks fulfilling different parameters. +Under performing Sectors Find+ https://www.moneycontrol.com/stocks/marketstats...
Honestly I have very little idea(couple of drops of water from an ocean of vast ocean) about these things. And they worked well for me. I will encourage you to keep on digging more and more. And please share your process too.
My Process
Let’s take an example of my recent find Garware Technical Fibres.
How did I find
I was randomly searching https://www.tradingvie...m/ . So I was seeing about the market movers couple of days ago. Quickly my eye fell on GARFIBRES. It was trading at 1770 maybe. Honestly it sounded like a penny stock. I thought that it is a garbage one.
Next
Then I googled about it. I thought Fibre means some textile raw material maker. I visited it. https://www.garwarefibre...m/
Next Since it is important to know about your company
I clicked on Solutions tab. I saw it caters to a lot of industries.
FISHERIES, AQUACULTURE, SHIPPING & INDUSTRIAL, YARN & THREADS, SPORTS, COATED FABRICS, AGRICULTURE, GEOSYNTHETICS. It is a copy of its products copied straight from the website itself.
Next
Fired up https://www.moneycontrol.com/india/stockpricequ...
Checked Financial
Net Profit
140.53 125.68 105.17 84.36 61.90
That is yearly growth. Is not it decent?
Checked shareholding pattern
Standalone June 2020 March 2020 September 2019 March 2019
Promoters 50.71 50.71 50.7 50.7
Pledged 0 0 0 0
Sounded promising
Then I checked the chart
575.5% rise in 5 years. Then saw some patterns.
Googled about its debt
Garware Technical Fibres’s net debt is only 0.80 times its EBITDA. And its EBIT covers its interest expense a whopping 16.9 times over. So you could argue it is no more threatened by its debt than an elephant is by a mouse.Jan 14, 2020
Source: https://simplywall.st/news/garware-technical-fi...
Next advice seeking
Then I asked "@malikcool":https://www.desidime.com/users/184763 "@guest_999":https://www.desidime.com/users/94783 @ garamjalebi. It was trading at some 1750 maybe. It was Saturday, Market holiday. Got some reviews on it. And bhai I could not touch it. In two days it reached almost 2k.
But you got to be really humble here, to respect people, who are dealing in security market. If you don’t discuss, your horizon wont widden.
Similarly I had a heated debate in our whatsapp group about caplin point. It traded above 660-670, RSI was 85+ on daily chart. Big people are there. They said price action and stuff like that. I said exit and you will be trapped for a while. RSI cooled down, stock fell 100rs almost in intraday. But I learnt a lot about price action and the products made by Caplin. You can see in moneycontrol. They have shared info about their products for the first time in their history.
So, have a good discussion group too.
We regularly discuss things with "@malikcool":https://www.desidime.com/users/184763 "@BubbleBoyChickenLittle":https://www.desidime.com/users/1059107 "@Dastro":https://www.desidime.com/users/370689 "@drupal":https://www.desidime.com/users/10553 "@xuseronline":https://www.desidime.com/users/17318 "@adrishya":https://www.desidime.com/users/604263 "@garamjalebi":https://www.desidime.com/users/1148315 "@guest_999":https://www.desidime.com/users/94783 and many others in https://www.desidime.com/discussions/ipos-in-oc...
Having a good discussion group helps a lot.
One Important Thing I realized, whilst being in the rat race of making money that if a company is good, has sound business(customer, products, management, sustainable), has good leadership then a good chart will be made for it most probably. So, in the end, long term investment beats everything, please know your company in and out. What to do? There is no shortcut around it.
Well of Optimism in share market has no bottom. So, if you don’t take risk, you won’t win but stay safe. If you fall, you will keep falling without any safety nest. Money will be gone and most importantly time too. Build a safety net first. In share market it is called stoploss. And in real life, it is friends and family. Their love and support will protect you from harm. Respect them
Deal Wiki
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Last updated by: bikidas2060
Good
Anyone wants to learn & discuss, trading / investment can DM me.
Vu
trial and error correction is much better then this Phd
still 99% will fail.
Stock market is a SCAM MARKET WHERE IF BUYER INCRESES THEN MRKT GOES TO SELL AND WHEN SELLING INCREASE GOES TO BUY SIDE IT’S TOTALLY SCAM AND CONTROLLED BY POLITICAL LEADERS NAMELY EARLIER CHIDAMBARAM NOW SHAH
Anyone understood what is he trying to say? 🤣🤣
Le dot
alrighty
Very good collection for Stock Market Newbies