Scribd
Upload
32 views10 pages

Starter's Kit 31-12

Uploaded by

oxnine2233
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as TXT, PDF, TXT or read online on Scribd
32 views10 pages

Starter's Kit 31-12

Uploaded by

oxnine2233
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as TXT, PDF, TXT or read online on Scribd
You are on page 1/ 10

Starter's Kit:

Financial Markets:

Farmer's marketplace:

Farmer -> Seller -> Vegetables, Fruits


Consumer -> Buyer -> Vegetables, Fruits

Product : Fish,

product : Financial Securities (Any type of fin. intstrument - FDs, Bonds, Stocks,
Crypto, Currency,F&O)

Product

- Stocks/ Shares of Companies

Equity Market

Equity - Ownership

9:15am to 3:30 pm

- Fixed-income Market/ Bond Market / Debt/Credit market

Fixed Deposit (FDs)

- Interest rate - 7%
1L => 1.07L
- Safe
- Taxable

Bonds

Government Security Bonds (G-sec)

- NHAI
- Interest rate - 9-10%
- Safest
- Tax-free

https://www.thefixedincome.com/

Corporate Bonds

- Interest rate - 11-12%


- Safe
- Taxable

www.wintwealth.com

-> Currency Pairs (USD, INR, EURO


Forex Market

24 Hrs * 5 (Mon - Fri)

$5Trillion

Crypto Market (Crypto currencies)

4 year cycle - Bull run & bear run

ETH, MANA, SAND, MATIC, GALA, FLOK, FILE

Binance ; Delta Exchange

24 Hrs * 7 (Sat & Sun)

Futures & Option (F&O) - Derivatives

99% of traders lose money in derivatives

Equity - stock market

Avg loss - 1-2% (2000Rs)


Avg gain - 3-5% per trade (3000-5000)
Good gain - 10-15% (10,000 -15,000)

F&O

Avg loss - 8-10% loss (10,000Rs)


Avg gain - 20-30% wins (20k-30k)
Good gain - 100%-200% (1L)

85% accuracy (9/10)


- 8 consecutive losses

1L -> 2L -> 3L -> 5L -> 9L => lost in all in weeks

Stock market:

Basket - Portfolio - personal collection of stock

Supermarket - Stock Exchange

Nifty 50 - top 50 companies by market cap

Market Capitilization (Market cap.)

- Market value of a company

= Total number of shares * Stock price

https://www.screener.in/
Large Cap: (Blue-chip)
If the market cap is greater 30,000Cr

- Established companies
- Safe investments
- ~returns 15% p.a
- Wealth Preservation

Aggressive Stocks : Wealth Creation


Mid Cap:

- Market cap is between 5000Cr and 30,000Cr


- Riskier
- Growing companies
- ~returns 25% p.a

Small Cap:

- Market cap is less than 5000Cr


- Riskiest
- Small companies
- ~returns 35% p.a

Age profiling

18-35 years - High risk apettite: Wealth Creation

70% - Mid & Small cap ; 30% - Large Cap

50+years - Low risk apettite : Wealth preservation

70% - Fixed-income market/ Bonds

30% - Stock Market ( 70% - Large Cap; 30% - Mid & Small)

Large cap - safe

Myth #1 - Any fundamentally good stock will always go up in price

Rule- 80-50:

Any stock that has moved up well, there's a 80% chance that will crash by 50% from
the
top.

There's a 50% chance that it will crash by 80% from the top (Small cap)
Myth #2 - Timing the market is impossible, don't try it

Commercial , Investment Bankers - JP morgan, Insurance , Brokerage ,

financial industry - Timing the markets

- When to enter to exit.

How does the price move up or move down?

Buyers vs Sellers

Buyers -> Buying pressure -> Demand -> Makes the price go up -> Bulls

Seller -> Selling pressure -> Supply -> Make the price go down -> Bears

Bulls vs Bears

Bull Markets
- 100% returns 1year ; 50-60% -2nd retunrs

- Avg duration 2.5 years

vs Bear MArket

- 20% crashes - 50% crashes

- avg duration - 9 months

Passive Investor:

- Buy Nifty 50 Index Funds

UTI mutual fund

Moderatly Passive Investor:

1L

25% - UTI Nifty 50 Index Fund (Large cap)

25% - PGIM India Midcap Opportunity FUnd (Mid cap)

25% - Quant Small cap Fund

15% - US Markets
5% - Vanguard S&P 500 ETF
5% - iShares Semiconductors ETF
5% - Invesco Global CleanEnergy

10% - Crypto
[ETH, MANA, SAND, MATIC, FILE,SHIBA INU]
ETFs vs Mutual funds

- ETF - Exchange Traded Fund

- Mutual funds - buy through mutual brokers

The Big Short

The wolf of wall street

The margin call

Active Investing / Positional Trading / Momentum Investing

Fundamental Analysis:
- Understanding the fundemental or book of company

https://trendlyne.com/features/

3 Step:

1. Theme: EV, AI, waste management, Infrastructure, Railways, Defence , Gaming,


Real estate, Steel, Space, AgriTech, VR & AR, Healthcare

INfra
2. Sectors: Railways, Cement, Steel, Connectivity

3. Stocks
trendlyne.com

Durability - Financial Strength


Valuation

Under valued or Overvalued

Market price - Stock price

Book value - Real value of company

Rs 50 per share ; Real value - Rs 100 per share

Market value < Real Value - undervalued

Market value > Real Value - overvalued

Warren Buffet - Value Investors

Only buy undervalued

Momentum - if it's moving up now or not


Hedge Fund / Trading Firm

- Research Team & Trading Team

Trading Team - Technical Analysis - Price to enter; price to exit; Risk involved

Technical Analysis:

Reading the charts & timing it

Different styles of traders use different time frames

Positional Traders / Long term trader

1Hr of research every month

Buy & hold for 6months - 2 years

Time Frame : 1 Week TF ; 1Day

Swing Traders

1Hr research per week

Buy and hold for 1-2 weeks

Time Frame : 1D/ 4H TF

Intraday Traders

Buy & exit on same day

1Hr/ day

Time frame : 30m/15m -; 5mins

Positional Trading: Momentum Investing

Buy & Hold strategy till trend reverses

- Cut your losers short and let your winners win

Risk Management

-> Invest only 10-15% per stock


-> At least 6-10 stocks [ 20 max ]

2-3 of them may go in a small loss

2-3 will be decent gains

2-3 will be insane gains

-> Max Stop-loss (SL) - 8%

10k -> Rs 800

1L
10% loss - 90k -> To get back to 1L -> 11% gain

20% loss - 80k - 1L => 25% gain

50% loss - 50k x2- 1L => 100% gain

90% loss - 900% gains to get back your money

-> Only invest in to confirmed uptrends

-> Never invest into downtrending stocks

-> Two ways to enter:


Buy during the High breakout
Buy during the dip when higher lows are formed

Buy the dip is valid for uptrending stocks.

Confirmed uptrend:

3 layer confirmation

HH_HL_HH

LH_LL_LH

theta fuel

You might also like