Funded Trader:
- Prove your skills in trading
Rs 300 from Rs 3000 capital
Return on Investment - 10%
10L -> 1L profits
1Cr -> 10L profit
Virtual Simulator - $200k
ROI - 2% ; Drawdown (Maxloss) - 1%
$10,000 -> $ 30k - $50k - $100k
US Markets :7pm - 1:30am
Forex Funding - 24hour
Financial Markets:
Farmer's Marketplace:
Farmer -> Seller -> Vegetables, Fruits
Consumer -> Buyer -> Vegetables, Fruits
Product : Financial Securities (Any type of fin. instrument - FDs, Gold, Stocks,
Crypto)
Financial Markets:
Stocks/Shares of company
- Equity Market / Stock Market
Equity - ownership
9:15am to 3:30pm
2) Fixed-income Markets (Debt/Credit)
Fixed Deposits (FDs)
- Interest rate - 7% ; 1L -> 1.07L
- Risk free
- Safe
- Taxable
Government Security Bonds (G-Sec Bonds)
- NHAI
- Interest rate - 9%
- Tax-free
- Safest
thefixedincome.com
Corporate Bonds
- Interest Rate - 11-12%
- Taxable
- Risk
Safe strategies:
- Corporate Bonds
- Monthly interest is rotated into stocks
www.wintwealth.com
3) Crypto Markets
24*7 hours
4 Year cycle
Bull market / Bear market
4) Forex Markets (Currency)
24*5 - Mon-Fri
5) Derivatives Markets (Futures & Option)
99% traders lose money
1L => 3k per day
1L => 10k;30k ; 15k => 2-3k
1L => 2L
85% accuracy; (9/10)
8 consecutive trading losses
1L - 2L -5L -10L => 8 losses
Stock Markets
Basket - Portfolio - collection of stocks
Supermarket - Stock Exchange
Index - collection of stocks
Nifty 50 - Top 50 companies by market cap
Market capitalization (Market.cap)
Large Cap: (Blue-chip)
- If market cap is greater than 20,00Cr
- Safe
- Returns ~15% p.a
- Established
- Wealth Preservation
Aggressive Stocks: Wealth Creation
Mid Cap:
- If market cap is between 5000 Cr and 20,000 Cr
- Growing companies
- Returns ~25% p.a
- Riskier
Small Cap: (Penny stocks - Under Rs 10)
- If the market cap is less than 5000Cr
- Small companies
- Riskiest
- Returns 35% p.a
Age Profiling:
- If you are between 18-35 years of age - High risk appetite
70% Mid & Small Cap ; 30% - Large Cap
- If you are above 50 years of age - Low risk appetite
70% - Bonds
30% - Stocks (70% - Large Cap ; 30% - Small cap)
Myth #1 :
Any fundamentally good stock will always go up in price.
Reality:
80-50 Rule:
Any stock that has moved up has 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
Myth #2:
You can never time the market. time in the market is more important that timing the
market.
- You can never time the exact bottoms or tops
Timing the market is the entire the financial industry
Institutional Investors
- DII (Domestic Inst. Investors)
- FII (Foreign Inst. Investors)
Retail
How does the price go up or price go down?
Demand vs Supply
Buyers -> Buying pressure -> Demand -> Price moves up
Sellers -> Selling pressure -> Supply -> Price moves down
Bull Markets
-> Avg duration - 2.5 years
-> Returns ~80-100%; 40-50% ; -15-20%
-> Buying the dip
Bear Markets
-> Avg duration - 9 months
-> ~15-20% ; 50% ; 80%
Over long-term ; Bulls always beat the bears
Passive Investor:
It's been proven that Nifty 50 gives the best returns with the best safety
CAGR -14%
Buy Nifty 50 Index Funds
UTI Nifty 50 Index Fund
Moderately Passive Investor:
10k
25% (2.5k)- UTI Nifty 50 Index Fund (Large Fund)
25% - PGIM INdia Mid cap Opportunity Fund
25% - Quant Small cap Fund
15% - INDMoney (US Stocks)
5% - Vanguard S&P 500 ETF
5% - Invesco Global Clean Energy
5% - iShares Semiconductors ETF
10% - Crypto [ETH, MANA, SAND, GALA, MATIC, RUNE]
Active Investing:
Fundamental Analysis:
Top-down Approach:
Theme: Gaming, Infra, Semiconductors, Green Energy, Agritech, Healthcare, Waste
Management
Sectors: Solar, Wind, Hydrogen
Stocks: www.trendlyne.com
Durability - Fin. strength
Valuation - Overvalued or Undervalued
Real/Book value = Total assets - liabilities
Market value - stock price
Rs 100 per share (Markt.value)- Rs 150/per share (book value) => Undervalued
Value Investing
Momentum - Stock is moving up right now or not
Technical Analysis:
-> Defines your trade:
Entry point, exit point & Risk
Reading the charts
3 Styles:
Positional Trading (Momentum Investing)
- Buy and hold for 6months - 2 years
- 1 Week Time frame / 1Day
1Hr/Month
Swing Trading
- Buy and hold for 2 weeks-3 weeks
- 4Hr/ 1Hr time
Intraday
- Enter & Exit on same day
- 30m/15m for analysis ; 5 mins for entry
Positional Trading:
Rule #1:
Only invest in confirmed uptrends.
Never ever invest into down-trending
Buy the dips is only for uptrends,
never for a downtrend
- 3 Layer Confirmation
HH_HL_HH => Confirmed uptrend
LH_LL_LH => Confirmed downtrend
To enter a stock:
1) Buy the High breaks
2) Buy the dips
-> if a stock starts uptrending
6 months -> 2 years -> 5years
Risk Management:
Cut yours losers short, let your winner run
-> Invest upto 10% per stock [10 Stocks]
-> Max risk per trade -> 8% ; 10k -> Rs 800
2-3 -> Hit SL of -8%
2-3 -> Good returns - 20-30%
2 stocks -> +80%+
Low Risk Portfolio:
BTC : 25%
ETH : 25%
MANA : 10%
SOL : 10%
MATIC : 10%
AVAX : 10%
ARB : 5%
LINK : 5%
Medium Risk Portfolio:
RUNE : 15%
SYN : 15%
SHDW : 10%
MINA : 10%
SNX : 10%
FXS : 10%
DYDX : 10%
CVX : 10%
ASTR : 10%
Binance/ Kucoin
Delta Exchange
