What Courses Available on Learning the Stock Market?
No one probably feels like losing money in stock market. In market, the pain of losing money is much greater than happiness of earning some.
If you’re thinking of making an investment in stock market but worried of ending up with loss or the very thought of loss upsets you, you shouldn’t invest in stock market.
Through this article, we will help you understand how market works and why prices go up and down. Moreover, we will also discuss how to start with stock market for novice, for trading and investment perspective.
What comes to you mind when you listen to the word “stock market”?
The answer to this question would be quite different to people based on their level of understanding on the market.
If you ask me, what comes to my mind, here’s a small list-
1. Money
2. Trading screen
3. Warren Buffett
4. Profit and loss
5. Excitement and many more
Before going deep into this, let’s start from the very basics of stock market.
What is Stock Market?
The stock market is a mechanism in which the shares of publicly traded companies are issued, bought and sold. It is one of the most important parts of the free market economy.
The stock market helps your small money grow into big sum and becoming wealthy without involving the risk of starting a business. To many people, the stock market is nothing more than a gamble, but it isn’t actually a gamble.
Say you invested Rs 500 on one roll of a dice, where on your win you gain Rs x and in case of loss, you lose the entire Rs 100.
While you invest in stock market, it’s hardly when you will lose all your money unless there’s serious problem with the company like in case of Kingfisher Airlines and there’s nothing much to explain in this regard.
How does stock market work?
The rise or fall in stock prices is determined by a number of factors which includes demand and supply, political or social unrest, media, availability of suitable alternatives, opinion of renowned and big investors like Rakesh Jhunjhunwala, natural disasters etc.
These factors along with suitable information help create bullish or bearish sentiment in the economy.
Accordingly say if the number of buyers is more than sellers, stock prices will certainly go up. Similarly, the stock price will tend to fall if numbers of sellers exceeds the number of buyers.
What makes stock market so unpredictable?
Let’s explain this discussion with an example. Say the stock prices have been rising for several years so few investors will sit on the sidelines holding cash and waiting for the opportunities to go short.
But the point is that how to judge exactly when the selloff will take place.
The important question here is that if you are on the sidelines, how to understand that when to get inside the market?
However, if you are already in the market, how to judge when to exit the position.
If making prediction about the market were so easy, then these questions would have been answered easily but actually it’s not the case.
Now since we are done with the basics of stock market, let’s understand how a novice can start with stock market-
When is the right time to invest in stock market?
Are you willing to learn or planning to build your career in stock market?
So what are you waiting for?
If you are concerned about your age to learning in markets, let me tell you that there is actually no age to learning or doing anything in life.
There’s a famous quote by Martin Luther King (Jr) which says-
The time is always right to do what is right.
Let me take two examples to show that there’s actually no age to do anything in life-
The first example is of Harland David Sanders (the man behind the KFC), who started his career in his 40’s and he franchised his secret recipe “Kentucky Fried Chicken” at the age of 62. Soon after that he got very successful.
The next example is of legendary investor, Warren Buffett who started his career at the age of 11. If you are new in the field of stock market, you must know or have heard about Warren Buffett.
He is a renowned investment guru and one of the most respected and richest businessmen in the world.
Warren Buffet said-
“I made my first investment at the age of 11. I was wasting my life until then”
These two examples prove that there is actually no age to do anything in life.
There are many stock market courses available for beginners also. Stock market covers variety of topics.
There many online courses available such as capital market for beginners, technical analysis, fundamental analysis, wealth and income management, commodity and currency trading and so on.
Depending on your choice and area you can choose accordingly. Certification on these courses will also add value if you want to make a career in it.
From my personal experience, I can suggest you of doing online CRTA course in which all the topics about Stock Market is covered.
How to start with stock market for novice?
- Start with Warren Buffett’s letters to shareholders (which is like bible to investors).
- It may so happen that you face problem with some aspect of the letters but these letters are supposed to be read and re-read again and again to keep gaining the wisdom and knowledge from it.
Download the shareholders letter of Bershire Hathaway. You may click on the links below to learn the key lessons from some of the letters of Warren Buffett.
https://www.stocksedu.in/courses/
2. As a novice, you should read business newspapers like Economic Times, Business Standards, Mint etc and watch business channels like CNBC, Zee Business etc to get a hang of the market.
To know what are the important things you should read or how to conduct business newspaper analysis, watch the video below.
3. Start reading books like-
a. One up on Wall Street by Peter Lynch
b. The Intelligent Investor by Warren Buffett
c. Learn to Earn by Peter Lynch
Two important tips to keep in mind in stock market are as follows-
i. Start early
ii. Money management techniques
Once you gain basic understanding about the market, we’ll move on to the next level.
Beginner’s Checklist for Stock Market
Stock Market for trading minds
If Charts and technical pattern interests you, it seems that you are drawn towards Technical Analysis. So if you are new to this field, here are few guidelines you can follow to build your base in Technical analysis.
1. Read good Books
Start with good books on Technical Analysis like-
a. Reminiscences of a stock Operator by Edwin Lefevre
b. Trading for a living (By Alexander Elder)
c. Technical Analysis of the Financial Markets (By John J Murphy)
d. Japanese Candlestick charting techniques (By Steve Nison)
e. Encyclopedia of chart patterns (By Thomas Bulkowski)
2. Learn Technical Analysis
If you are willing to learn technical analysis from very basic, you can take up a course at Learn Share Market: Finance Courses by Stocksedu.
Moreover, you can also go through the study material or videos in google to develop an understanding on technical analysis.
3. Read articles and blogs
You can regularly go through good blogs or articles or videos like-a. https://www.stocksedu.in/courses/
4. Virtual trading is important
Paper trading is a good way to track your performance and understanding on the subject. Moreover, you can use NSE Paathshala for virtual trading. This process is very important before entering into actual trade in the market.
5. Market Psychology
Psychology plays a very important role in trading just like in a game of chess or in athletics.
As a trader progresses from novice to expert, the understanding of both individual and crowd psychology becomes extremely relevant to become a successful trader apart from gaining the basic knowledge like chart patterns, risk management, market structure etc.
With the market becoming extremely competitive day by day, traders are facing a lot of challenges which are sure to test their skills and limit of their psychologies.
6. Follow good traders
Start following good traders in the world. Read about them, their trading strategies, their books, etc and it will surely benefit you in your trading career in the long run. Some of the well known names in the industry are as follow-
a. Paul Tudor Jones
b. Jack swagger
c. Alexander Elder
d. Martin J Pring
e. John J Murphy
7. Opt for Professional degree
You can opt for STOCKSEDU course, to gain specialization and detailed knowledge on technical analysis.
Stock Market for Investment minds
1. Books should always be the first step
Someone has rightly said-
“Books are one’s best friend”
Some of the good books on fundamental analysis are as follows-
1. The Intelligent investor by Benjamin Graham
2. Competitive Strategy by Michael Porter
3. The Essays of Warren Buffett by Lawrence Cunninghan
4. Buffettology by Mary Buffett and David Clark
2. Education is important
Fundamental Analysis is a vast subject which starts right from reading Annual Reports and sector reports to analysing financial statement to valuation of the company. It’s better to get proper education on fundamental analysis, equity valuation and financial planning.
3. Read annual report of companies
There can be no better piece of information about a company than annual reports. It may look like a collection of pages which companies sends at the end of the year and reading it may seem to be a time consuming and a boring job.
However it is a very valuable piece of information about a particular company. In the annual report, the company’s management discusses the important aspects about the company like industry performance, its vision for the long term, opportunities and threats faced by the company, company’s historical performance etc.
Some of the important things which we need to focus while reading the annual report includes-
a. Chairman’s letter
b. Financial highlights- It gives snapshot about the performance of the company.
c. Director’s report and MD&A section
d. Financial performance- It provides 10 years summarised track record
e. Financial statements
Few of the important areas where we should focus while reading annual and comparing the annual reports :-
i. Debt scenario of the company
ii. Salaries drawn by the key personnel of the company
iii. Actions by the leading shareholders of the company
4. Read good blogs and magazines
Blogs are good source of learning in today’s era where we are so busy with so many work. Reading blogs or articles helps you gain a lot of understanding on the subject and building storehouse of knowledge. Some of the blogs you can start with are given below-
a. https://fundooprofessor.wordpres...
b. https://www.farnamstreetblog.com/
5. Make idol and follow
There are so many learned investors across the globe whom you can follow and learn from them. Read their biographies or autobiographies, their lessons and investment techniques. Some of the well known investors whom you can follow are as follows-
a. Warren Buffett
b. Charlie Munger
c. Jim Rogers
d. George Soros
e. Rakesh Jhunjhunwala
6. For specialisation
You can opt for CFA course, to gain specialization and detailed knowledge on fundamental analysis.
