Stock Market Learning Index
Complete guide to master stock market trading
Foundation Concepts
Stock Market Basics
What is stock market and how it works?
Market Terms
All important market terminology
Trade Types
Different types of trades
Trading Styles
Various approaches to trading
Candlestick Patterns
Bullish, Bearish & Continuation patterns
Chart Patterns
Technical chart analysis
Support & Resistance
Key price levels identification
Market Analysis
Technical, Fundamental & Price Action
Advanced Trading
What is Stock Market and How it Works?
The stock market is a platform where companies raise capital by issuing shares of stock to the public, and investors buy and sell those shares in hopes of earning a profit. It serves as a bridge between companies seeking funding and investors looking to grow their wealth.
Key Players
Companies
Issue stocks to raise capital for business operations and growth
Investors
Buy and sell stocks to build wealth and generate returns
Stock Exchanges
Platforms where buying and selling occur (e.g., NSE, BSE, NASDAQ)
Brokerages
Intermediaries between investors and exchanges (e.g., Upstox, Zerodha, Motilal Oswal)
How It Works
Initial Public Offering (IPO)
Companies issue stocks to raise capital from public investors
Listing
Stocks are listed on stock exchanges for public trading
Buying and Selling
Investors trade stocks through brokerages.
Price Determination
Supply and demand dynamics dictate stock prices
Trading
Investors trade stocks in real-time through brokerages
Settlement
Transactions are settled (e.g., payment, delivery).
Market Structure
- Primary Market: Companies issue new stocks
- Secondary Market: Existing stocks are traded
- Over-the-Counter (OTC): Stocks not listed on exchanges
Stock Types
- Common Stock: Ownership in companies
- Preferred Stock: Higher claim on assets, dividends
- Growth Stocks: High-growth potential companies
- Value Stocks: Undervalued companies
- Dividend Stocks: Regular income providers
Investment Strategies
- Long-term Investing: Hold stocks for extended periods
- Short-term Trading: Buy and sell within short periods
- Diversification: Spread investments across asset classes
- Technical Analysis: Analyze charts and patterns
- Fundamental Analysis: Evaluate company performance
Market Indices
- Nifty-50: Tracks top 50 Indian companies on NSE
- Sensex: Tracks top 30 Indian companies on BSE
- Bank Nifty: Tracks banking sector companies
Benefits
- Liquidity: Easy buying and selling of stocks
- Diversification: Spread risk across multiple investments
- Potential for Growth: Long-term wealth creation opportunities
- Dividend Income: Regular income from profitable companies
- Inflation Hedge: Stocks often outperform inflation over time
Risks
- Market Volatility: Price fluctuations can cause losses
- Company Risk: Poor company performance affects stock value
- Liquidity Risk: Difficulty selling in certain market conditions
- Economic Risk: Economic downturns impact market performance
- Regulatory Risk: Changes in laws and regulations
Getting Started
Open a brokerage account with a registered broker
Complete KYC (Know Your Customer) documentation
Fund your account through bank transfer
Research and choose stocks or investment funds
Set a budget and investment strategy
Start with small amounts and gradually increase
Remember, investing in the stock market involves risk. Always educate yourself, set clear goals, and consult with professionals if needed.