Globally, the fact of stock market trading is that the majority of the traders lose their entire capital in a span of 3 to 6 months due to lack of knowledge. The prime reason is that without having any formal knowledge of technical analysis they try to gamble and bet in the stock market. Gambling is for fun and for that you have to pay money. Guys, it is simple but not easy to earn money in the stock market.
It takes 5 years of knowledge to become a doctor or an engineer whereas traders think that they can earn money by just buying and selling in the stock market as per their choice which is the myth and the fact is they lose their hard-earned money.
Trading is a zero-sum game which is the fact of Game theory. Someone loses is someone gain. So who are the winners? The fact is that 5% of traders win money in the stock market. They are the traders who learn and give time in learning Stock Market Course In Jaipur from best stock market institute firstly and then practice consistently technical analysis charts, patterns, money management, and position sizing and last but not the least they maintain discipline and consistency in every trade they take with proper research and make a profit. They follow technical analysis and take a calculated risk and keep strict stop lose.
Investment in the stock market is a different ball game together and the majority of people mix trading and investment. While investing in the stock market one needs to learn fundamental analysis which is the study of Economic analysis like fiscal policy, monetary policy, sectoral analysis, and company quantitative and qualitative analysis. We also need to diversify our investment in multiple sectors and companies with proper planning and asset allocation based on long-term goals objective to create wealth.
Option strategies: It is the study of open interest of futures and options, option chain analysis, and options greeks for trading in the stock market. Futures open interest deviations on the higher end help option traders to identify big trends in the market on a daily timeframe. How to build trading strategies and writing strategies.
Fundamental Analysis: It is the study of economic data like fiscal policy, monetary policy, and other macroeconomic data to interpret positional trade and bigger trends, how to interpret news, and event analysis. Quantitative and qualitative analysis of companies to invest in. Sectoral Analysis, global economic events for trading in international commodities.
Technical Analysis Course: It is the study of price and volume data with the help of Japanese candlestick charts and patterns which helps the traders in the stock market to select a stock or commodity in the multi-timeframe for intraday and swing trading with strict stop loss for risk management. The accuracy rate of profit-making trade will be around 70 to 75%. We also study tools and indicators which help to maximize profit. How to build strategies for intraday and positional trade with proper position sizing and money management.
A trader can earn decent money on his capital with proper money management, risk management, and position sizing by analyzing and applying a proper set of tools, rules, and strategies. Remember the most important thing, Practice and discipline are the keys to success in stock market trading. The more you learn From Best Stock Market Institute In Jaipur more will you gain profit in the stock market.
Being a responsible person for the family, you need to have cement plannings for Investing. To become an investment expert you need to have to be very careful about your education. That you are getting in the terms of investing and finance.
However, you won't understand the aspects in just one blog or with one person. So, to get the right education for yourself about investing you need to pick the Best Stock Market Course In Jaipur with the help of the course content, you will get an idea of the market.
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Capital Markets
Conclusion - Hence, it's clear that if you are getting the right to pick the right instrument of the investment, then you will get the best investment return from it.
We all plan for our future and save money to not get into problems. The right way to understand the right to invest money is not that easy. You have to select the right Stock Market Institute In Jaipur so that you can get the best financial education about the market. However, without any good teacher, you won't be able to do good in that, to learn the best strategies and the correct way of investing you will get the profits from that only. Moreover, the right guidance will only provide the skills that can help in winning in the trade,
Modules Of Stock Market-
For all these modules you need to have the proper education for this you have to select the Best Stock Market Course In Jaipur , this will always get you in the situation where you will learn the right form of making the profits
What Is Algorithmic Trading?
Algorithmic trading (algo trading/artificial intelligence automated trading) uses a predefined set of instructions through an automated computer program to place an automated trade when the conditions/algorithm are met. Algo trading is used for high frequency trading in the stock market to generate profit which is not possible to execute by a layman trader. The algorithm can be of price, volume breakout, technical indicator breakout or Quant based mathematical model in Option chain.
It does not have the element of human emotions and makes trading more robotic. Around 50% trading volumes in the Indian Stock Market is done by algo trading. You can now imagine the future of stock market trading. Algo trading also makes the market more liquid by generating higher volumes, efficiently and systematically managing risk of the trade.
You can visit/query for Best Stock Market Course in Jaipur for trading/algo trading. They have a program of one month to four month duration to make you an expert trader in the stock market with 100% practical knowledge. They also provide internship opportunities for live algo trading. This helps the students/traders to get first hand practical experience in a live environment on the proprietary desk of brokers.
What are the Benefits/Advantage of Algorithm Trading?
Order placement will be more accurate and instantly placed in microseconds.
There would be hardly any chance of error
Trades would be executed at the best possible prices
Timing and accuracy of algo trade is very high as there is no significant price change while execution by machine. Further transaction and impact cost is very low.
The algorithm continuously monitors the feeds to optimize the back tested strategy using historical data and real time data to calculate the accuracy and probability of profit making trade.
Algo trades are robotic and it reduces the errors due to human emotions which makes stock market trading more efficient.
Algo trading is high frequency trading(just like F1 race) where there is speed, thrill and no chance of human error to execute trades with predefined data sets and multiple parameters/multiple time frames for multiple strategies based on different parameters and strategies.
Who are the players involved in using Algorithm Trading?
Intraday traders/ swing traders use algo for trading in multi time frames, quant traders in options, market makers, brokers and speculators for high frequency trading.
What are the different strategies in Algo Trading?
Pair Trading
Delta Neutral Strategies
Rebalancing of Index Funds
Arbitrage
Mean Reversion
Volume Weighted Average Price
Scalping
Transaction Cost Reduction
Market Making
Statistical Arbitrage
Event Arbitrage
To cover all this content you need to pursue your course from the Best Stock Market Institute In Jaipur so that your knowledge about the algo trading can get strong and you can uderstand the depth of the domain. Now there are some more tools that you need to know about the Algo Trading.
What are the Technical Tools Required for Algo Trading?
Programming knowledge to program the required trading strategy, hired programmers or customized trading software.
Network connectivity and access to trading platforms with leased lines to place orders.
Access to market data feeds that will be monitored by the algorithm for opportunities to place orders.
The ability and infrastructure to backtest the system before it goes live on real markets.
Available historical data for backtesting depending on the complexity of rules implemented in the algorithm by differential probability to increase efficiency.
Was it an Operator trap for small investors? Public Owned Companies and Government officials giving such irrational decisions in Public Listed Companies can dent investors sentiments of the Indian Stock Market.
Classic examples of rising by elevator and fall by stairs.
The share price of IRCTC on 1st October 2021 was at 745 and made a high of 1280 making investors' wealth double in 2 weeks however the rally was short-lived and it made a low of 640 on 29th October 2021. The sudden rise of the shares in this bull run is way ahead of fundamentals given the fact that profits of companies do not support such valuations. Such euphoria in the stock market creates a trap for layman investors and traders. There is some big money that creates a trap but the main cause of concern, in this case, can question the involvement and credibility of Indian government-owned public listed companies and their subsidiaries. As an Investor in PSU we rely on the credibility of the government, such thing can dent foreign and domestic institutions investment in govt owned companies at a time when the government is planning to raise billions of dollars by listing LIC to raise 1 lakh crore from IPO to meet budget deficit by disinvestment from PSU companies.
To gain detailed insights about the Stock Market you should have proper knowledge, tools, rules, and strategies for investment and trading. You should choose the Best Stock Market Course in Jaipur for such practical knowledge
Damage was done by the Ministry of Railway and made a damage recovery by revoking the decision. The stock recovered sharply after the statement but small traders lost crores of rupees. Will the Railway compensate the layman traders who lost crores of rupee due to margin call triggered by such action? It's an open-ended question that questions the credibility of law formed by the government itself on Securities Contract Regulation Act 1956.
What was the news which questions the integrity of the Ministry of Railways in the IRCTC case?
On October 28th, 2021, a senior official from the Ministry of Railways issued a press release that stated that IRCTC would have to share revenues acquired from convenience fees for bookings made on its platform in a ratio of 50:50 with the parent company i:e Ministry of Railway. The first question arises how such a decision can be taken from the parent company when the subsidiary is publicly listed and investors interests should be protected at any cost. The sentiment of public shareholders is taken for granted. The decision was revoked on the very next day by afternoon stating that “ Interest of minority shareholders should be kept in Mind” by DIPAM. DIPAM is the Department of Investment and Public Asset Management, but the damage was done and small traders lost their money due to margin call trigger as the stock crashed 25% on the early morning of 29th October and brokers would have squared off small traders and investors' positions due to margin call. Investors and small traders' hard-earned money was looted by such an irrational decision by the Ministry of Railway.
Trading in the stock market in the derivatives segment is done with the help of margin which means we do not need to have 100% funds to enter in a trade. For example: If you want to purchase shares worth 1 lakh rupees and the stock initial margin is 20% then you need to have only 20000 rupees into the brokers trading account to buy/sell contracts by paying 20% token money.
Margin Call: Next day if the market falls more than the margin paid by you to the broker in the trading account then he has the right to squareoff the position. Brokers can square off the position when 80% of the margin paid by the trader is notional loss. IRCTC margin was around 25% so the broker has the right to square off the position the next day when the 20% price goes against the trade. IRCTC stock made a low of 20% in the early morning of October 29th and hit the first lower circuit. When the circuit opened brokers squared off the position of traders who were in a loss of 20% and the stock fell further 5% which means small traders made a loss of around 25%.
After wiping out small investors and traders' money, the Ministry of Railway stated that the revenue will not be shared with the parent company but left an open-ended question for the entire stock market investors and traders about the integrity of government-owned companies……….
(Derivatives shares circuit opens once the daily price range hits the circuit limit given the fact that they have DPR but do not have a circuit and opens once the price hits the DPR).
Will Global rising inflation, concern of US Economy Stagflation and China slow Economic Growth will halt the India’s Economic growth? To gain such Insights about Economic News and learn with Case Studies and Live Analysis, Visit Best Stock Market Institute in Jaipur. They will guide you with practical analysis in trading, Investment and Career Oriented Courses with 100% placement.
Last Week on 12th October 2021, the International Monetary Fund (IMF) maintained India’s GDP growth forecast for FY22 and FY23 at 9.5% and 8.5% in its recent World Economic Outlook report. Further India is projected to be the fastest growing economy for Next two years. Finance Minister Nirmala Sitaraman highlighted to keep the liquidity stimulus and to keep central bank policy easy as the country recover from COVID 19. The Central Bank too is projecting the same growth in its recent monetary policy meeting.
The India Growth story is also showing in Economic Indicators on Month-on-Month basis by showing an upward tick.
Indian Economy have opened up and recovered from the shock of second wave and almost reached pre-COVID levels due to high vaccination and falling cases which is positive sign for further growth.
Economic Indicators of Industrial Production, Cement and Steel Consumption, Capital Goods and Consumer goods output, manufacturing goods index have seen robust sequential growth consistently and have almost reached 2019 levels.
Due to an increase in consumption demand GST collection is robust and reached more than 10% higher to pre-COVID levels.
The government of India have ensured liquidity boost to support the economy, sale of asset monetization plan including IPO of LIC, Air India Sale, aggressive divestment of govt owned companies, sector specific schemes, agriculture reforms. This have led to V-shape recovery of Indian Economy. COVID-19 vaccine access and aggressive vaccination program have led to stead fast opening up of economy after the impact of second wave. At the current pace of vaccination India will be able to fully administer doses to all adults by the end of March 2022. Due to this the economic activity in all sectors however uneven have led to rapid recovery in all sectors supported to increased demand from consumers.
Indian Export and Import Sector have grown rapidly due to pent up demand in global economy and increase in energy and metal prices. There need to be a bit caution as the same can lead to increase in inflation which can have negative impact and central banks increase in interest rate can lead to slowing growth going further.
Capital expenditure by asset heavy model like real estate, infrastructure, transport and power is yet to kick off as no major capex expansion is seen in this sector. Manufacturing capex is the only sector which have seen significant growth. Service industry have contributed the current economic recovery to a significant extent. This uneven growth is the negative factor and the recovery in asset heavy model will be the key for further growth going forward.
Government of India stimulus to boost the recovery was met by high budget deficit of 8% and 6.8% in 2020 and 2021 by disinvestment. It would not be further possible to increase deficit and government have to shrink to meet its long term policy stance. Even Central Banks have reduced interest rates to historical lows and have reached its limits so the onus will be on government for effective fiscal policy to ensure further growth and incentives and PLI schemes to manufacturing and agriculture sector. Budget 2022 will play a key driver for further economic growth.
High inflation in global economy due to surge in commodity and energy prices poses a risk to India’s growth trajectory. The rising inflation is due to supply side constraint during the pandemic. Current inflation trajectory in metals and energy is continuously increasing higher than expected by central banks across the globe. US central bank will start increasing interest rate by mid-2022 and will stop asset purchase program which have infused liquidity in global markets. This can lead to outflow from Indian Stock Markets. Slow growth and rising inflation can lead to stagflation in global economy which is a serious cause of concern for Stock Markets in India and global markets. The central banks in India will have to start increasing interest rates due to headline inflation going above 6% consistently. There is also a concern arising from debt of Chinese companies and slow growth of Chinese economy. This are the key cause of concern in global equity markets which can lead to downward spiral in Indian and Global equity markets.
The global equity markets have given a rapid recovery and have made new highs due to liquidity boost and low interest rates and have rebounded from the aftershock of COVID 19. Further the current rally can only be sustained by fiscal policy measures and economic reforms. The global cause of concern is rising headline inflation due to surge in commodity and energy prices which can force central banks to start increasing interest rates which can lead to lower consumer spending and consumption which can lead to slow real growth and derail the current stock market rally.
For, Best Stock Market Course in Jaipur: NIWS is the pioneer in stock market course where we have custom designed courses for students who want to make their career in stock market in the field of Investment Advisory, Consulting, Research, PMS, Investment Advisory. We provide 100% placement in Banks, Broking House, MNC Banks with very good salary package. The courses are with 100% practical with case study approach and our students become a valuable resource from day one. We have courses for professional traders like technical analysis, option strategies and algo trading course with 100% practical trading in live markets. We provide internship to traders to hone their trading skills on Algo Desk and option Jobbing. We have courses in Portfolio Management and Fundamental Research for Long Term Investments.
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