Beginner Level Question

General
1

Hello Team

Hope you are doing well!

I am a beginner and question also like beginner level.

Till nowadays everybody facing a covid-19 situation so I realized everybody knows about the stock market.

My basic question is

  1. Where to learn the stock market? LIke versity and I had completed 2 modules but it’s theoretical.
  2. How to choose stock for trading purpose?
  3. Most Important question is: before choosing the stock which important factor should I follow?
  4. What core point is required to follow during every trade?
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Which factor should I follow when I doing fundamental analysis?

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  1. Varsity ,youtube ,check historical charts, read anything on markets lots of books are availabe
  2. The most important point is risk management ,protecting the capital is very very important thing …even if returns are less dosen’t matter …don’t be greedy
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5

I’m not into trading so can’t reply to your 2 questions. Regarding the investing, yes Varsity module is amazing but there are many paid courses where they have summarised and shared the insights in the most practical manner.
I have multiple paid courses, I can share with you.

-Everyone evaluate very differently to the same company but Free cash flow is one most criteria to see. In simplest way, last 10year, 5 year, 3 year and 1 return you can see. If the returns are consistent, you can say that in next coming years, returns would be more or less in the same range. For ex, consistently Asian paint has given 20-25% CAGR return from decades, can we conclude that , for coming years, this much return can be expected?

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  1. For stock market learning youtube and investopedia is good website.

  2. Before chosing stock for trading purpose do a study of basic factors, start trading in excel sheet where no money involved, you will learn more on doing mock trading in excel sheet.

  3. Important factor to follow is see entire history of stock you are chosing, read every possible article as if you own this company, list down good vs bad points, and then decide how good it is.

  4. In every trade always look for 14 to 20 percent profit margin, involve only in equity segment.

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  1. Varsity may be theoretical but provides you overall exposure to understand the concepts which is very important

  2. This comes with research and your analytical power. Along with experience

  3. Technicals and Fundamentals of the scrip/organization

  4. Not a trader so wont be able to justify my answer

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Could you please share the detail of the course which you have purchased.

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  1. Whatever data the company shares, such as cash flow and balance sheet, is it correct?
  2. When the company gives a Dividend, the investor benefits but what does the company benefit from it? And if the company benefits, what does it look like?
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Refer these videos for the best video resources to learn about Stock Market (https://youtu.be/5q1q3AlDE7Q) and Technical Analysis (https://youtu.be/UaIZ7D9snaE)

Refer these videos for the ideas for stock selection techniques

  1. https://www.youtube.com/watch?v=rYCvvixaHJ8
  2. https://www.youtube.com/watch?v=XXbEJG6mS_c
  3. https://www.youtube.com/watch?v=9ffoDueQd5g
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Thank you so much

1 Like
12

Hello
I’ve One Doubt

Question : I have ( NIFTY 13000 PE , 27-MAY , BUY POSITION ) for hedging purpose , what happen if market crashes during this month am i able to close the position or i got stuck due to illiquity , circuits or some other reason.

  • Maybe illiquity does not happen because it is index option and monthly expiry also.
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If 13000pe is for hedging of what future or other option you sold
You have something called exposure margin if there is shortfall broker will squareoff your position pls be carefull