Welcome to another full of knowledge article by Excel Strategies, A Stock Market Trading and coaching firm which trades for themselves, for their HNI clients and also gives amazing stock market courses for people who are planning to start investing and trading in stock markets or you are already trading in stock markets but are facing losses.
So the very first question comes that why it happens only in stock market that people take it for granted and a place to test their fortune where they come without absolutely any knowledge with an aim to make millions of money in short span of time. Over the past few decades we have seen many people saying that 95% people lose money in market and only 5% make the question is what are these five person people having special in them the differentiation point is of knowledge that 95% come just to test their luck however 5% people come with proper knowledge and that take this stock market trading very seriously instead of just buying on someone else’s tips or recommendation.
We should also think that why it never happens in medical profession or in Engineering or if you want to become a lawyer that you expect to make money without even doing any professional degree but this mind set changes when it comes to stock market and people just think to make quick money without doing or studying it professionally…
Now let us understand once you agree with the importance of knowledge in stock market then and what are the various courses that you can do so that you can understand the basics of stock markets and you can start trading independently:
- Technical Analysis: It is oftenly said that everything is included in the price of the stock so that means if you are able to understand the movement of the stock where it is taking support or bear it is being rejected from the resistance different it is following a basic understanding of this can help you a lot if you are starting with the stock market trading. In technical analysis we also cover Mini indicators which are primarily divided into two leading and lagging indicator. We have Momentum oscillators like RSi, we have trend following like Supertrend, we have moving averages, we have MACD, Stockastic, bollinger band and many other indicators which help a person understand what exactly is happening in the stock. All this is covered very well in the technical analysis course and helps you understand the basic movement of the stock in various time frames.
- Fundamental Analysis: after technical analysis we have another very powerful course which is by the name of fundamental analysis in which we try to understand the basic fundamentals of a company. The basic job of fundamental analysis is to read the balance sheet of the company and to understand the future plans of the company. In this we try to understand how company is better if it is the market leader if it has some competitive advantages if the company has some patents that makes it the leader of the industry such that it in the coming years nobody is able to defeat it or beat that company. We also try to understand what are the Holdings of the stakeholders of the company if they have any pledged shares what is the liabilities of the company what are the Assets of the company what is debt to asset ratio for how company is growing in the past few years how is sales increasing of the company or the total profit after taxes is increasing. So overall we understand how company is working fundamentally which helps us to understand the long-term view of that company however in short-term that company may face ups and downs but if a company is fundamentally strong then it will for sure go up in the long run and fundamental analysis is of great use to investors specially.
- Price Action: this is a very important part and helps you read the chat on a quick basis immediately many people say that this is the part of Technical Analysis well but in technical analysis we focus more on indicators and in price action we focus primarily on the behaviour of the price due to some news on May be event that is happening. In price action bi try to understand how price is behaving at important levels that levels can be e a support or resistance from past that level can be a Fibonacci retracement level that level can be a trend line and so on. What makes price action so important is that it helps you get entry very quickly because it will show you how exactly price is behaving right now whereas indicators will take time to give you entry points and price action will help you enter into the trade very quickly. Price action is also very important when it comes to intraday trading because in intraday movements are quite volatile and we cannot afford to enter late and that is why many times we have to follow price action strategy is to enter into the trades immediately and book quick profits. You can say it is the combination of price action and technical analysis that we used primarily in the intraday trading where we trade with high volumes because fundamental analysis or we can say the fundamentals of the company does not change every five or ten minutes but stock prices move up and down every minute and that can be e well read through the price action how prices behave in at Special levels. Candlestick patterns are also part of price action which completely show that if the price is taking rejection from few levels different type of candlestick patterns include one candlestick pattern like hammer do pin bar we have to candlestick patterns like bullish engulfing Harami pattern, we have three candle stick patterns like morning star evening star and all these become part of price action which actually tells how price is behaving at particular levels and what type of candles are being formed.
- Along with above mentioned price action technical analysis and fundamental analysis course we also need basic knowledge of risk management which is considered to be the Holy Grail of stock market we should also understand position sizing that is how much quantity we should take according to our own portfolio. The simple tool of risk management is to wait for big profits when you are proven right and to come out with a small stop loss if you are proven wrong because in stock market nobody can be hundred percent right and you have to come out with the small stock loss but wait for big profits if you are proven right.
We hope above article must have helped many readers and future traders who are looking for best stock market course online now they have basic idea what exactly they have to study and what should be the syllabus that they should focus on once the cover up this basic of fundamental analysis technical analysis and price action then they should focus on studying future and options because options are amazing tool and the only risk management tool that we have in stock market and it can be of rail great help to retail traders because options help us to manage our risk very swiftly. At XL strategies we have decided to come up with more articles where we will be covering future and options and other aspects of stock markets we would also be covering individual indicators in detail and how to use them in our upcoming articles.
If you are interested in studying with us or you want to know more about us please feel free to visit our official website https://www.excelstrategies.in
We can proudly say that we provide the best stock market course online with thousands of satisfied students and thousands of people have recovered their losses from stock markets from the knowledge we have given them.