Stock Market Basics for Beginners | Share Market

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Stock Market Basics For Beginners


Stock Market for Beginners


Agenda     

Share market basics Terminology How to Trade Practice on virtual terminal Doubt clearing


Share market basics Share market : Buying and selling of shares is done


MAJOR STOCK EXCHANGES IN INDIA NSE(National Stock Exchange)  It is the largest stock exchange in India in terms of daily turnover and number of trades, for both equities and derivative trading NSE.(9:00 to 3:30)NIFTY 

BSE( Bombay Stock Exchange)  It is the oldest stock exchange in Asia and has the largest number of listed stocks. It is located at Dalal Street, Mumbai.(9:00 to 3:30)SENSEX 

 MCX(Multi

Commodity Exchange of India Ltd.) Silver ,Gold, Copper & Natural Gas and Crude Oil (10:00 to 11:30) MCX


Why to invest in stock market? •You want to maximise your returns. •You want to beat inflation.


Why to invest in stock market? •Keep pace with inflation. •Reach your financial goals with the right mix of investments.


Why to invest in stock market? •Reduce investing risk with a solid asset allocation strategy. •Reduce risk with a well-planned strategy for buying and selling stocks.


Why to invest in stock market? •Use dollar-cost averaging to stay in the market when stock valuations are high. •High-frequency traders aren't hurting returns for regular investors.


How to invest in stock market?


BROKERS ď ś A broker

is a party that mediates between a buyer and a seller. ď ś A stock broker or stockbroker is a regulated professional broker who buys and sells shares and other securities through agency firms on behalf of investors.


RENOWNED ONLINE STOCK BROKERS IN INDIA


DEMAT ACCOUNT ď śThe

term Demat, in India, refers to a dematerialized account. ď śIn

a Demat account shares and securities are held in electronic form instead of taking actual possession of certificates.


Index   

Mirror of the market How the top companies are performing Calculated by assigning weights to specific securities. Examples: Nifty 50 , Sensex , Bank Nifty, etc


NIFTY 50 COMPANIES 1 MARUTI

11 RCOM

21 DRREDDY

31 CAIRN

41 HDFCBANK

2 BHEL

12 HINDUNILVR

22 JINDALSTEL

32 SIEMENS

42 TATASTEEL

3 DLF

13 ACC

23 SBIN

33 POWERGRID

43 RELINFRA

4 BHARTIARTL

14 WIPRO

24 AMBUJACEM

34 TATAPOWER

44 RELIANCE

5 ITC

15 HCLTECH

25 ONGC

35 IDFC

45 BPCL

6 GRASIM

16 M&M

26 TATAMOTORS

36 SESAGOA

46 COALINDIA

7 ICICIBANK

17 BAJAJ-AUTO

27 LT

37 GAIL

47 KOTAKBANK

8 PNB

18 HDFC

28 JPASSOCIAT

38 RANBAXY

48 HEROMOTOCO

9 CIPLA

19 INFY

29 NTPC

39 AXISBANK

49 HINDALCO

20 SAIL

30 TCS

40 SUNPHARMA

50 STER

10 RPOWER


Bull Market


Bear Market


How Does Trading Terminal Look Like ?



Trading Terminologies


Delivery Vs Day Trading 

When you purchase stocks with the purpose to hold them for more than a day is termed as Delivery trading.



When you buy or sell stocks for intraday with an obligation to square off your position in the market on the same day is known as Day trading.


Price      

Last trading price Open price Close price Day high Day low 52 week high/low


Order & Trade 

Order: Bids you are putting into terminal.



Trade: Bids which are executed.


Important Terms      

Market Price Limit Price Margin Short Selling Short Covering Stop Loss


Basis of Trading 

Fundamental basis: Analysing company accounts, business profitability by using ratios like EPS, PE, Book value to PE etc.



Technical basis: Analyzing the historical price movements on the charts for identifying patterns in share prices.


`Questions & Answers

Thank you.


5 Ways Of Growing Money • Business • Real Estate • Give Loan To Some One • Invest In Bank, Post Office

• Invest In Securities ( Share Market)


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