Stock Market में Trading की शुरुआत कैसे करे

 Hello, hello, hello! Greetings friends! I am your friend Vivek Bajaj

Stock Market में Trading की शुरुआत कैसे करे

A student of mine wants to learn to trade

Stock market

I said I will definitely teach trading, but not just to you. I will teach all my students online for free

In this video series, I will sit and chat with my student

and try to teach her how to trade

and let's see if she is able to trade in the end or not.

Hello Annapurna! Hello Sir!

How are you? I am good sir.  How are you? I am good too

Annapurna is a millennial

She has completed her Masters? Right sir

She is my friend's niece

One day my friend called and told me that she has an interest in trading, so please guide her

It's good to know that the young generation is interested in trading seriously

First of all, let me congratulate you that you have thought about trading

Thank you, sir

It's a very good career if pursued properly

That's why I have come to you for guidance

I will try my best to teach you

Whatever best I can do, I will give you my best

But before I start; as this is a new series that I am starting

We will start with the basic and then try to move to advanced so that you can start trading

Let's understand your educational background and why do you want to trade

I have completed my BCom (Honours) in finance

I had a slight interest in the stock market from the start but kept it on the side

Because I belong to a business family, I went to pursue Masters in Entrepreneurship

Post that I have been working in a startup for experience since a year now

What I realized was that my money kept accumulating in the bank account and was stagnating

So I thought why not put it to better use?

Try to multiply it and get more income

So I thought why not start with trading

Absolutely

You have studied entrepreneurship and you want to step into trading

and become an entrepreneur

The first lesson is that Trading is an Entrepreneurship

You do it for yourself and you are not answerable to anyone.

You work with your own money with limitations

If you are into intraday trading, then you enter in the morning and exit in the evening

Not taking anything back home

It's like no debtor, no creditor

Everything's going to happen in the day

Or if you are into positions where you can estimate your buying price and your earnings

Trading is a noble occupation.

where you are an entrepreneur

but like I said, it's not easy

It looks glamourous and interesting

but it's very important to learn the basics

So let's start

Let's start with the journey and see if I can help Annapurna become a trader or not

To all the viewers, if you know any youngster with a similar profile who are also interested to learn trading

then please share this video with them

we will start with the basics

and try to teach the concept that works for me and has helped me earn

and try to inspire youngsters to take up a career in trading

So let's start with the basics

You can ask whatever question comes to your mind and don't worry about the time limit

Ask any number of questions you want. We will record multiple videos for the same

What is the first question in your mind now?

Sir, how do you trade? How does your trading setup look like?

So you are at my office desk and here you can see my entire trading setup.

I am a professional trader and I have been trading in the market for 15 to 16 years now

The trading setup for a professional will be different from that of a novice

So if you see my setup

I have removed the two screens that used to be on the top

I have reduced it since I am not involved in intraday active trading now

Nowadays I am more involved in active investing and passive trading

i.e., I carry my position for some days now

But when I was an intraday trader, I had 4 monitors in front of me

One was for real-time news updates

Another was to track real-time ticker updates

There used to be ticker-reading in the olden days

Every action in the market used to be shown in the ticker

Which stock is up or down used to be shown in the ticker continuously

That was one screen that I had

One other screen was to monitor the graphs which shows the technicals

As you can see that there is a graph with multiple lines moving

It's like a snake moving inside the screen

All you have to do is predict the movement of this snake

This is trading

So that's the graph

And on this another screen, the tool that I have developed, StockEdge

which helps me with my homework at the end of the day

And all my analysis and notes are there in the StockEdge

So that's always open on one of the screens

So 4 screens, and one laptop which is in front of me

To track my emails or any other actionable item

This is a typical trading setup of a professional trader

Don't get worried by the complexities

Not sure which screen to check when

This is a professional trader's setup which will build over a period of time

I'll suggest you keep one laptop or desktop in front of you

to keep and track the tools that I am going to mention, will be sufficient

The mobile apps are also very active nowadays

70% of the time we are using a mobile app

So keep a mobile phone and a desktop/laptop to start off

But what I would suggest that if and when you become a full-time trader

then a bare minimum setup should have a laptop, a smartphone, and 2 more screens

There's actually just one CPU connected to two screens.

If I move my mouse, you will be able to see

There's just one computer with two monitors. It has a dual display card which is easily available nowadays

This is the setup you should aspire to have

If you are able to achieve this setup, it implies that you are a professional trader now

Your target should be to get this setup

So this is my trading setup

This is just the hardware setup Let's come to the software setup now

The software setup you should have as a trader

Trading is forming judgement on the fluctuating prices of the stocks

Like, investing and trading are two different things

You question the price of the stock in the market when investing

You feel that the price is wrong

The price either should have been up or down

that we call evaluating the fair value

what should be the right price of the stock

Trading is different

The price in the market is always correct while trading

I need to evaluate whether the price is going to go up or down

Okay. Understood

What will you do when the price goes up?

I will buy Absolutely

What will you do if you feel that the prices are going to go down?

I will sell Exactly! It's simple

All you have to do is buy and sell

The biggest question here is how much duration do you want to trade for?

What is the duration of your trade?

Do you want to predict the price movement of a stock for 2 days, 2 weeks, or 2 months

Every duration will differ

The price movement might go up steeply and do down steeply just within 2 hours

So if you buy and sell, your duration will just be those 2 hours

But a stock might show a steep rise within a span of 2 months, then your duration will be 2 months

So as a trader, the first question that you need to answer is that what is the duration of your trade?

Do you want to trade within 5 minutes, i.e. do intraday trading?

Or do you want to hold your position for some days, i.e., do swing trading

So it's either intraday trading or swing trading.

What do you want to do?  Intraday trading or Swing trading

I want to start off with swing trading

So you want to hold the shares you buy for some days

Then you need to observe the price movement on a swing basis

Technical Analysis gives the flexibility to help you link the price with your objective.

This is a very brilliant study. Let me show you

This is a stock.  What do you understand from this chart?

Are you able to understand it?

I am unable to understand so many lines

Aren't there too many lines to make it complex for you?

Let's go to a simple chart

I'll nake a chart with a new layout to simplify it

The name of this software is Trading View

I use it for advanced technical charting

And the other software that I use is StockEdge, developed by me

Even StockEdge has charts

Use StockEdge to analyse the overview data  of fundamentals, technicals at the end of the day

Use Trading View for advanced technical charts

This is my setup that I have defined

How do you feel after seeing this chart? I am able to understand this at least

This is the daily chart

Daily chart maps the closing price of a scrip every day

Let's take the example of the State Bank of India

when I am typing State Bank of India, it shows SBIN, that is its code

The code of a stock is defined by the exchange

This is the share price of the State Bank of India

What can you see? What is going on in the charts?

This is the daily price, which plots the closing price per day and creates a graph accordingly

What can you make out of this?

So they plot a day's price per day.

So this is plotted from June to November

No, this is from June till today

This is till February. This is the zoomed-in view, if you zoom out, you will get old data as well

If I am into swing trading, do I observe such old data?

Absolutely. If you are into swing trading, then we don't need to see such old data

We will only check the chart for the past 3 to 4 months.

Now we will see a chart for past 12 months to understand what's happening in the SBI

You will be able to see multiple towers along with the line chart

What are these towers? This is Volume, as in how much is being traded

The number of volumes being traded

Okay?

If the price rises with a volume of 100 shares and if the price rises with a volume of 1000 shares

Which is more relevant?

Price rise with a volume of 1000 shares

More people trading, with an increase in price, indicates of conviction of more people in it

Technical analysis is when you study the price and volume together

This is the daily chart, which shows the end of the day chart with volume

What can you make out of the chart? What has happened in the State Bank of India?

The price has gone up drastically in the past few days

It means bullish market

What happened here?

There must have been some market event It means the bearish market

This is the bullish market and this is the bearish market

You must have heard about bull and bear. Bull means an increase in price and bear means a decrease in price

Price action indicates a bullish or a bearish or a mid-range known as the consolidation range

The price is resting and planning its way forward

It's a race and everyone is running. People in the share market are also running

Where will you place your bets on?  On the price which runs higher

An increasing price implies bullish A decreasing price implies bearish

Consolidated implies that the price is resting and planning its way forward

So you can see a bearish trend in the chart. When did this bearish trend start?

What happened last February, March, and April? Corona!

Corona led to a decrease in the price of not just this share but the entire stock market

Then the price was resting for some time, this is known as the consolidation range

When it was done resting, it started preparing for a new race

It ran up very steeply

This is known as breakout

But the previous high

When it is consolidating, this was the high that it had created

It lit up like fire after breaking the previous high

It started a new run post the breakout

Initially, the prices decreased, then consolidated and then increased again

This is technical analysis

Breakout is when the prices start running up again? Correct

Break - out

Break-down

Why do we use the term bull for an increase in price and the term bear for a decrease in price?

This is a good question, to which I don't have an answer to. Try to guess

You will not know any answer

Just think why do we use the term bull for an increase in price and the term bear for a decrease in price?

Maybe because when bull runs, it gets crazed out

Even the bear does the same thing

Bull's horns are facing upwards and a bear's nose is facing downwards

Hence when a bull trend is upwards and a bear trend is downwards. This is the story

There are more animals in the market which we will discuss later

A bullish market is created when there is a breakout

A bearish market is created when there is a breakdown

As a trader you need to identify both bullish and bearish trend as you can benefit from both

You will benefit by buying in the bullish market and by selling in the bearish market

How do you sell in the bearish market? We will have these conceptual discussions later

You have understood the broad concept that you need to buy in the bullish market

All you need to do is predict a bearish or a bullish trend

whether it is going towards a bullish trend or a bearish trend

You need to predict this as per your time duration, whether you are predicting for the next few minutes, or hours

You need to change the charts accordingly

You will follow the daily charts for swing trading

But if your trade duration is less

Then I won't see the daily charts

I will change the tenure of the chart to a 2-hourly chart

It plots the closing price every 2 hours

I can change 2-hourly to hourly as well

I have a question

Why do we plot the closing price?

We plot the closing price as this is a line chart

We plot the closing price in the line chart

If I convert the chart to a candlestick chart

This is how a candlestick looks like

It is a very interesting pattern that will be discussed later

Candlestick plots high, low, opening and closing, all in this one pattern.

Following closing price in the line chart is a convention

Because the closing price is more relevant

The trends in between does not really matter as much in the line chart

All the price movement is relevant as per the candlestick chart

We can take out inferences through the different patterns of candlestick

Let's use the line chart for now

This is an hourly line chart

We can convert it to a 5-minute line chart or 1-minute line chart

This is SBI's 5-minute chart

There was a bullish trend in the morning

Now there is a correction in the market after some pause

You might feel after seeing the 5-minute chart that the stock might fall

As there is a downward trend

But there is an upward trend as per the daily chart

This is where you might get confused in identifying the upward and the downward trend

Identifying the trend in the price movement of the stock depends on your objective

If you are trading in small tenure, then you can see a negative trend.

when it's going up or down, a trend is being created

if the trend is downwards in a small tenure, then I will trade for a small duration

if the trend is upwards in a small tenure, then I will trade for a small duration

The first thing that is important to understand is the tenure of your trade

Do you want to trade more for a small time period or do you want to trade less but effectively in the longer time period

I have another question

How do I define the time period? Should it be a range or a fixed time period?

There is no need for a fixed time period that needs to be defined for trading

It is price dependant

You can square up the stock as soon as the desired price is achieved, be it 2 days or 20 days

Price is more relevant for you, and not time

I'll square up when I have earned

I'll square up when my stop loss is hit

Stop Loss? We will discuss this later

We will have more conversations on it in the upcoming videos

But you have understood the basic structure

I have a trading infrastructure. I follow technicals for trading

My trading setup is based on the duration of my trading

I have another question

You have shown me hourly as well as daily charts. Which one should I follow?

Depends on your objective

If my objective is swing trading and my price is achieved in 2 days

But I feel that it might go up again after 5 days So should I hold or should I sell?

We will discuss the trading strategies in the upcoming videos

Sometimes you happen to mix up two tenure

I have a setup where I check the end of the day chart and 2-hourly chart

Any price movement of a stock in the market can be identified through small-tenure charts

Obviously

Small tenure charts will provide first-hand information because if the trend is changing

then a 5-minute chart or an hourly chart will inform you first

The large tenure charts will inform you later

I will share my setup with you

where you will see how can you integrate the daily chart with a 2-hour chart and create your own model

which can be used for swing trading

For Intraday trading, you might want to integrate a 5-minute chart with an hourly chart

I will teach you how to do that setup later

But you have an overview of trading now

You are familiar with charting now

We will also discuss what data to check post your dinner in the StockEdge App

The time post your dinner after 8 pm

What time do you have dinner? 8:30 pm

After probably chilling till 9:30 pm, use StockEdge App for your homework

so that you are better prepared for the market the next day

we will discuss how to do that

Finally, where will we transact? We transact through the trading terminal

Open an account with any broker and he will give you access to the trading terminal

I have the trading terminal open. It's very simple

You can see all the stocks, its bid price, ask price, last edit price, which you can use to trade

I will discuss in detail about the trading terminal and how to use it

You can see the prices going up and down in the trading terminal

And this is the price at which you trade

You buy at ask price and sell at bid price. I will discuss this over a period of time

There is market watch, offer book, trade book and a lot more information

Your trading setup should have technical charts, StockEdge, which has much more than technical charts

and a trading terminal

you can get all 3 in your laptop.  Trading Terminal is also available in app nowadays

all the brokers provide the service

you can use the phone to trade and a laptop to analyse

What about news? You can put on the news

What you need to remember is the news that you are consuming is outdated

Someone has already acted on it

If you act as per the news, then you are just to lose your money

If you follow the charts, then assume that the charts already has captured all the news

News is biased and is given so that you act according to the people who are putting out the news

which generally leads to loss of money

Don't follow the news in the market hour, just follow the charts

Technical charts and price will give you the hint itself

Do not trade on the day of an event like a new RBI Policy

Trade post the event

The market is not going anywhere, neither are we. So why the rush to trade? We are here to make money

Okay?  Okay

Friends, this was just the first chapter where I have explained the basic setup for trading

Hope you all have liked the video

We will discuss all the grassroots basics of trading

And will try to help Annapurna become a trader

It will be a lottery for me if you are also able to become a trader

I would love to train as many people through  this medium

The more you share, the more people will be able to get educated

I will be able to tell people the right way to participate in the market

Thank you for watching this video

Thank you Annapurna for your time Thank you sir

How to start trading in share market?

 How to choose good stock?

 What are the types of trading?

 How to earn money from share market?

Let's meet again Next time, next class