stock trading
Post on 22-Oct-2014
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This is a presentation I gave to the first year B.Com studentsof Symbiosis College of Arts & Commerce, Pune. It was my first, and the only one till now, guest lecture. This is an introduction to the stock markets and stock trading. A perfect 1st step for the beginners..TRANSCRIPT
AN INTRODUCTION TO STOCK TRADING
04/07/2023 An Introduction to Stock Trading - Pradeep Tewani
A Few Important TermsShare
Primary Market
Secondary Market
Stock Market
D-Mat
D-Mat Account
04/07/2023 An Introduction to Stock Trading - Pradeep Tewani
Why do we do Share Trading?• Dual Benefits, Better Returnsi)
• Highly Liquid, Extremely Flexibleii)
• Become an Owneriii)
• Keeps you updated with the latest news in corporate worldiv)
04/07/2023 An Introduction to Stock Trading - Pradeep Tewani
Types of InvestorsInstitutional Investors• Foreign Institutional Investors (FIIs)• Domestic Institutional Investors (DIIs)
High Networth Individuals (HNI)
Retail Investors
04/07/2023An Introduction to Stock Trading - Pradeep Tewani
04/07/2023 An Introduction to Stock Trading - Pradeep Tewani
Market IndicesNIFTY SENSEX
Acronym for National Fifty
Benchmark Index of National Stock Exchange
A collection of 50 top companies listed on NSE
Acronym for Sensitive Index
Benchmark Index of Bombay Stock Exchange
A collection of 30 top companies listed on BSE
Other Indices: Nifty Midcap 50, Bank Nifty, etc in NSE and MIDCAP, SMLCAP, BSE 500, etc in BSE
04/07/2023 An Introduction to Stock Trading - Pradeep Tewani
Flow of Transaction
Sell BuyProfit
04/07/2023 An Introduction to Stock Trading - Pradeep Tewani
Short SellingA method useful for Traders
04/07/2023 An Introduction to Stock Trading - Pradeep Tewani
How do I Start Trading?Find out a Stock BrokerOpen a D-Mat and Trading AccountDeposit money (initial margin) in the trading
accountStart trading in your account
04/07/2023 An Introduction to Stock Trading - Pradeep Tewani
How do I choose a Broker?Zero – in on a few good Broking FirmsGo through their cost structure and benefits
they offerIf possible, find out about their existing
clientsWho are their bankers?Analyze the brokers’ past performanceFind out if they offer research and advisory
servicesTry to negotiate on various chargesSee how well learned are the employeesFinally, chose the broker who’s offer is most
beneficial
What do I need to open a D-Mat Account?
04/07/2023An Introduction to Stock Trading - Pradeep Tewani
i)
•Pan Card
ii)
•Address Proof
iii)
•Bank Account with Cheque Book
iv)
•Passport Size Photos
v)
•& Lots of Autographs
How to Trade?
04/07/2023An Introduction to Stock Trading - Pradeep Tewani
Call-n-Trade
• Broker calls you to update and advice
• Can place order over the phone
Trade Online
• Use online software or Website
• Stay updated real time
Visiting the Broker
• Visit the broker and sit in front of the terminal
• Good only if you’ve ample time
04/07/2023 An Introduction to Stock Trading - Pradeep Tewani
Factors Affecting Investment Decisions
i)
•Risk Bearing Capacity
ii)
•Diversification
iii)
•Total Return – Income & Growth
iv)
•Time Frame
v)
•Fundamentals of the Company
vi)
•Sometimes, only Intuition
Precautions to be taken while Investing / Trading?
χ Never trust you broker’s advice blindlyχ Never allow your broker to trade without
permissionχ If opting for online trading, learn the
software wellχ Check your contract notes regularlyχ Ask your broker for online back officeχ Be extra careful while “Short Selling”
04/07/2023An Introduction to Stock Trading - Pradeep Tewani
04/07/2023 An Introduction to Stock Trading - Pradeep Tewani
Career Options in Stock Broking
Dealer
Back Office Executive
Relationship Manager
Business Development Officer
Research Analyst
Manager
Owner of a Stock
Broking Firm
04/07/2023 An Introduction to Stock Trading - Pradeep Tewani
Other Avenues for Investment
Mutual Funds
Unit Linked Insurance Plans
Derivatives Trading
Commodities Trading
04/07/2023 An Introduction to Stock Trading - Pradeep Tewani
Some Study MaterialWebsites of Various Stock broking FirmsNSE Website (www.nseindia.com)BSE Website (www.bseindia.com)NCFM Certification Courses (available on
NSE’s Website)Various Business MagazinesVarious books written by experienced
investors and traders
04/07/2023 An Introduction to Stock Trading - Pradeep Tewani
?ANY QUESTIONS!