Technical Words used in Share Market

 BTST – Buy Today – Sell Tomorrow

 STBT – Sell Today – Buy Tomorrow
 Intraday – Buying and selling on same day
 SWING Trade - Buying and selling within week/month
 OPTIONS – Insurance for stock – Money Multiples
 CALL – CE – Buy stock when it is up trend
 PUT – PE – Sell Stock when it is down trend
 FUTURES – Bulk Trading (lot size) with Expiry Date
 Dividend – Profit Share
 Split – 1:05 (Avoid Split shares – 1 share split into 5 stocks prices will be reduced
 Blue Chip Stocks –
 Bullish Market – UP Trend Market
 Bearish Market – DOWN Trend Market
 Hedge – Both Side Investing
 Stock Symbol/Script – INFY, SBIN
 IPO – Initial Public Offering
 FPO – Follow-on Public Offer
 Index – Sensex, Nifty, DAX etc.
 Penny Stock - <1 Rs
 Larger-cap - More than 1000 crores
 Mid-cap – 100-1000 crores
 Small-cap – Up-to 100 crores
 AGM – Annual General Meeting
 NAV – Net Asset Value

To Begin Share Trading

1. DEMAT Account
2. System or Tablet or Mobile
3. Internet Connection
4. Basic Knowledge

Document Requirement for DEMAT Account

1. ID Proof
2. Address Proof
3. Photo 2
4. 6-month Bank Statement
5. PAN Card
6. Signed Application

Fundamental Trading Knowledge

1. Fundamental
 a. Yearly Income (Source: Money Control, NSE.com, Invet.com for Company Balance
sheets, results etc.)
b. Quarterly Income
c. Cash Flow
d. Orders and Projects
e. Management Activity
2. Technical and Chart Analysis
a. Moving Average, MACD, TRIX, Trend Indicator, Range Indicator
3. Supply and Demand
4. Money Management
5. Mind Control

Type of Traders

1. Scalpers – 5s-15mins
2. Day Traders – 1 Day
3. Swing Trader – Holding for Next Day or Week
4. Buy Today-Sell Tomorrow (BTST)
5. Short Term Trader – 1-6 Months
6. Long Term Trader – 6m-1 year

Indicator Types

1. Super Trend Indicators

2. Hull Moving Average
3. RSI Indicator (Upwards 70 Buy, Downwards 30 Sell)
4. TRIX (Triple Expotional Moving Average)
5. Parabolic SAR Trend Indicator
6. MACD – Moving Average Convergence Divergence
7. Heiken Ashi CHART – Best for Intraday
8. SQUEEZE MOMENTUM INDICATOR
9. Linear Regression Indicator alternate for Hull Moving Average
10. Bollinger Bands

Stock Analysis Steps

1. Use any free online website to analysis stocks (Money Control, NDTV Profit, Investing.com)
2. Pick any stock which you want to analysis search with the script name
3. Check daily/52 week low/high
4. Check current news and old and upcoming results
5. Announcements (+ means Uptrend/- means Downtrend)
6. Corporate actions
7. Financials
a. Check Balance Sheet
b. Profit/Loss
c. Quarterly results
  Face value – Initial stock price
 Book Value is original stock value, current market price increases based on the supply and
demand
 Dividend will be provided based on the face value
 EPS – Earning per share

Warren Buffet Tip – BUY - If current stock price is less than 50% of its book value but fundamentals
and technical should be analysed properly

Websites for Stock Analysis

https://www.tradingview.com/chart/ (30 Day trail then $22 monthly subscription) Best website to
learn indicators SQUEEZE MOMENTUM INDICATOR

https://www.moneycontrol.com/

https://www.marketcalls.in/ - Use for sample MCX calls (helps for paper trade)

https://money.rediff.com/index.html - Use to find hot stock (Top Gainers/Losers – Daily, Weekly &
Monthly)
Intraday Trading Strategy 1 – Super Trend Indicator
1. Select Super Trend Indicator - Don’t change any settings
2. Set Uptrend colour in Green; Downtrend colour in Red – Wait for 2 Candles to take any
decision
3. Use STOPLOSS

Intraday Trading Strategy 2 – Hull Moving Average Indicator (Range

Indicator)
4. Hull Moving Average - This indicator used by Professionals and Scalping traders.
5. This Indicator is very easy to use, and you can get profit easily while using FIRST and LAST
hour of trade hours for more accuracy
6. Use Linear Regression Indicator which is alternate for Hull Moving Average Indicator, this LR
indicator with MACD combination gives good result
7. Apply Heiken Ashi and Super Trend chart to Buy/Sell
8. Use Range Bar and Trend indicator for 80+% accuracy
9. Spend few minutes before market start and pick the suitable any one stock for trade

Intraday Trading Strategy 3 – RSI Indicator (Relative Strength Index)

1. Select RSI Indicator (Upwards 70 Buy, downwards 30 Sell) -Don’t change any settings
2. (Upwards 70 means Buy, downwards 30 means Sell) – Wait for 2 Candles to take any
decision
3. Use STOPLOSS

Intraday Trading Strategy 4 – TRIX (Triple Expotional Moving Average)

1. TRIX Indicator shows Trend and Momentum in same chart -Don’t change any settings
2. Use in Day chart and this Indicator is useful for Professional Traders, used for Trend
Identification
3. 2 Lines crossings indicate BUY/SELL decision
4. Use STOPLOSS

Intraday Trading Strategy 5 – Parabolic SAR Trend Indicator

1. Parabolic SAR Trend Indicator used for Trend Identification-Don’t change any settings
2. Trend Based traders uses this indicator
3. Used for swing/short term traders, doesn’t works for scalping traders
4. For Scalpers Hull Moving Average & Parabolic SAR will be useful - Wait for 2 Candles to
take any decision
5. Use STOPLOSS

Intraday Trading Strategy 6–MACD-Moving Average Convergence Divergence

1. MACD Indicator used by professionals and most of the time not trusted and named as most
lacking indicator, gives many wrong signals
2. Used for Idea gathering with other combination indicators – Super Trend is mostly used with
MACD. Set colour for more clarity –
3. If Histogram colour changes take decision to BUY or SELL “HISTOGRAM SIZE REDUCTION
ON BOTH UP/DOWN TREND” is indication - This method helps for scalping traders
 4. MACD line crosses Signal line which is indication for BUY/SELL
5. Crossing Zero line helps to take decision to go Selling side- This method helps for Swing
traders

Intraday Trading Strategy 7 – Heiken Ashi Indicators

1. Its most powerful indicator, it shows only average price movement which helps to take
decision easily to BUY/SELL
2. Use Candle line indicates the continuation of trend (confirm based on the colour)
3. DOGI symbol indicates the trend change
4. Use combination of Heiken Ashi and Super Trend indicator for 80+% accuracy

Intraday Trading Strategy 8 - RANGE BAR Indicator

1. RANGE BAR Indicator is very easy to identify BUY/SELL signals and it is very easy to
understand the trend technics for new traders as well
2. Use Range Bars and select range size as 0.5/1 whatever price gap you prefer which
indicates 1 candle price
3. Use 1-minute chart in candle stick chart
4. Dogi symbol indicates to “EXIT/ENTER”
5. Use first and last 1 hour for trade

Normal Chart
Range Bar Chart

Intraday Trading Strategy 9 - RENKO CHART Indicator

1. Use RENKO Chart and select range size as 0.5/1 whatever price gap you prefer which
indicates 1 candle price
2. Dogi symbol indicates to “EXIT/ENTER”
3. Use “STOP LOSS” to avoid LOSS and Use “TRAILING STOP LOSS” to avoid profit lose

Intraday Trading Strategy 5 - Linear Regression Indicator

This is alternate for Hull Moving Average Indicator, this LR indicator with MACD combination gives
good result
Intraday Trading Tips – Utilising NSEIndia.com
1. Website home page gives a general market information, Nifty last traded value etc.
2. Top 5 Gainers/Losers intraday/Scalping traders can use’s this information to pick stock to
trade
3. Index’s
a. Broad Market Indices
i. Indices i.e. Nifty 50, Nifty 100, Nifty 200 etc.
b. Sectorial Indices
i. Indices i.e. Nifty Bank, Nifty Auto, Nifty IT etc.
c. Other Indices
i. Indices i.e. Nifty Commodities, Nifty Consumption etc.
d. Fixed Income Indices
i. Indices i.e. Nifty 50, Nifty 100, Nifty 200 etc.
4. Select Stock Watch to see sectorial stocks etc.
5. Select FO Stocks and sort based on the % change to pick for “FUTURES OPTIONS” Trade
6. NSE PAATHSALA used for paper trade

How to Use Stop Loss

STOP LOSS RATIO 1:3 (This method doesn’t help’s for Scalping Traders)
Example

Buying Price – 100

Stop Loss – 99 – Use trailing Stop loss once buying price increases

Selling Order – 103

 While using Renko and Range Bars use previous low for STOPLOSS

Stock Market Tips Awareness

 Avoid Paid Calls
 50:50 chance for UP or DOWN trend


AUTO/ROBO TRADING 1 | ALGO TRADING

1. Uses of Auto Trade
a. Back Test
b. No Emotions
 c. Discipline
d. Consistency
e. Order Entry Speed
2. Types of Auto Trade
a. High Frequency of Trading
b. Auto Trading
i. Advisable for experienced and Professionals
ii. Orders from Odin, Nest Platform
iii. Service Providers are
1. AmiBroker
2. Meta Trader 4
3. Zerodha PI
Passive Income Ideas without Investment
 YouTube Videos
 BLOGS
 Online Sales
 Online Trading
 Brokerage for Sale
 Consultancy for any Field
 Insurance Agency
 Trainings
OPTIONS Trading Basics
OPTIONS Trading Basics
Types of options

1. Stock Options
a. Trading in any Stock Options are called Stock Options i.e. Gail, SBI, HDFC etc.
2. Index Options
a. Trading in any Index Options are called Index Options i.e. Nifty, Bank Nifty etc.

 CALL Options – Buy when market value increases

 PUT Options – Sell when market value decreases

Types of Options Price

1. IN THE MONEY
a. Gray colour highlighted values are called “IN THE MONEY”
b. Though time value is less profit and risk would also be less
2. AT THE MONEY
a. Values are at the strike price called “AT THE MONEY
b. Risk and Safety is 50:50
3. OUT THE MONEY
a. White colour shaded values are “OUT OF MONEY”
b. Investment would be less, and probability of profit is also less (20-30%), but if
market favours then profit would be very high
4. Traded based on the “Market Lot Size”
5. Expiry date applicable – every Thursday is weekly expiry and last Thursday of month is
monthly expiry
6. DONOT buy if contract is less than 100, otherwise bit difficult to buy or sell
7. We can do both BUY and SELL, but to sell need to maintain margin amount
8. Traded based on Strike price and expiry date
9. NEWS and Result Stocks are better to trade
Important Information about Option Trade

 GOTO any website ex: NSE.com

 Select any Stock and click “OPTION CHAIN”

Note: GAIL Stock used as sample images for educational purpose

HIGHTLIGHTED Informations are very important
Selecting Stock for OPTIONS Trade
 Select stocks which has more fluctuation

Steps to identify Volatile stock

1. Select based on the results and news

2. Use IIFL result calendar (https://www.indiainfoline.com/resultscalendar)
3. Pick any stock (BlueChip company is recommended)

Steps to Hot Stock

1. Picking HOT Stocks

2. Use rediffmoney (https://money.rediff.com/index.html)
3. Pick any stock (BlueChip company is recommended)
OPTIONS Analysis & Research
 GOTO any website ex: NSE.com and pick any stock
 Select any Stock and click “OPTION CHAIN”
 Pick any strike price and for its historical data
 Fill details and get 90 days data for analysis
 Check underlying value if it increases then price increases
 For any drastic change in any particular day; check its corporate action in any website
(MoneyControl)
Options Analysis for the position stock at loss
 GOTO NSE Website
 Select stock of options traded
 GOT Tradingview.com
 Select chart
 Apply following indicators and view 1-min chart also check in 1-day chart for more accuracy
o Moving Average, HULL Moving Average, Bollinger Band, Squeeze Momentum
o Apply SUPER TREND Indicator for more clarity
o Hold if stock is in up-trend, Exit if stock is down trend

Options Time Value

What is theta value?

Options Premium = Intrinsic value + Extrinsic or Time value

Current Stock A Price = 1005 (Underlying Price)

Stock A 1000 CE = Rs. 12

Underlying Price – Strike Price = Intrinsic Value

1005-1000 = 5 Intrinsic Value

Note: For more info we need to know Black Sholes Formula i.e. Delta, Gamma, Theta, Vega & Rho

Option Greeks

What is Delta

Underlying Asset Value

What is Gamma

Changes of Delta

What is Theta or Time Value

Time Value
What is Vega

Changes in implied Volatility

What is RHO

Option Greek Calculator

CALL PUT Analyser APP

Options Hedging
 Buying both CALL& PUT at same time (out of money)
 Professional traders and Big investors do hedge in (“In the Money”)
BANKNIFTY OPTIONS STRATEGIES-STRADDLE
What is Straddle?

This strategy involves two options of same strike prices and same maturity. A long straddle position
is created by buying a CALL and a PUT option of same strike and same expiry whereas a short
straddle is created by shorting a CALL and PUT option of same strike and same expiry.

If a stock is trading at Rs. 6,000 and premiums for ATM CALL and PUT options are 257 and 136
respectively.

Long Straddle or Buy Straddle

 Suitable for beginners

 This is also called as volatile strategy
 Buy CALL & PUT “AT THE MONEY” market should be volatile
 This strategy doesn’t work in “TREND MARKET”
