INVESTMENT IN STOCK MARKET

• BY : MOHAMMED ASIF MOHAMMED ATHAR MOHAMMED AZMATH MOHAMMED FASIL MANJUNATHA G.B MITHUN KUMAR

INVESTMENTS IN

STOCK MARKET

YOU ARE A TEAM OF FOUR

STUDENTS FROM FINANCE

SPECIALISATION AND AS A PART

OF LEARNING ON STOCK MARKET

SENTIMENTS BASED

INVESTMENTS WE ARE SURE YOU

CAN MAKE MONEY…

SHARE THE BOOTY AND YOUR

STRATEGY WITH OTHERS….

SHARE MARKET - BASICS• DEFINITION…..

STOCK MARKET IS A TERM USED TO DESCRIBE THE PHYSICAL LOCATION WHERE THE BUYING AND SELLING OF STOCKS TAKE PLACE AS WELL AS THE OVERALL ACTIVITY OF THE MARKET WITHIN A PARTICULAR COUNTRY..

• Benefits of investment in stock market.

Interest rate is higher than bank rate.

Capital appreciation.

Do not want to work on it.

TDS (tax deducted at source)

TWO TYPES OF INSTRUMENTS TO INVEST IN:

BONDS STOCKSA STEADY RATE OF RETURN. RETURN IS UNCERTAIN.

RISKINESS IS LESS. MORE RISKY WHEN COMPARED TO STOCKS.

NOT AFFECTED MUCH BY MARKET FLUCTUATIONS.

AFEECTED BY MARKET FLUCTUATIONS.

RETURNS ARE FIXED AND LESS. RETURNS ARE UNCERTAIN BUT MORE.

DOESN’T GIVE A SHARE OF THE EXTRA PROFIT.

PROVIDES EXTRA DIVIDEND WHEN PROFIT IS MORE.

OUR STRATEGY IS TO HAVE A BALANCE BETWEEN EQUITY AND DEBT

TYPES OF MARKET WE CAN INVEST IN:

• PRIMARY MARKET….

An Issuer/Company enters the Primary markets to raise capital.

They issues new securities in Exchange for cash from an investor (buyer).

If the Issuer is selling securities for the first time, these are referred to as Initial Public Offers(IPO's).

Summing up, Primary Market is the means by which companies float shares to the general public in an Initial Public Offering to raise capital.

TYPES OF MARKET… CONTD…

• SECONDARY MARKET…

Secondary Market transactions are referred to those transactions where one investor buys shares from another investor at the prevailing market price.

The Secondary Market or the Stock Exchanges are regulated by the regulatory authority.

In India, the Secondary and Primary Markets are governed by the Security and Exchange Board of India (SEBI).

WE HAVE DECIDED TO INVEST IN THE SECONDARY MARKET

A GOOD INVESTOR……

KNOWLEDGE ABOUT GRAPHS AND PATTERNS…..

THREE SURE SHOT WAYS OF MAKING MONEY IN THE STOCK MARKET…

FIVE REASONS WHY STOCK MARKET TRADERS LOSE MONEY…

LEARNING ABOUT PATTERNS….• Patterns are graphs that put all buying and selling into

perspective by consolidating the forces of supply and demand into a concise picture. As a complete pictorial record of all trading, chart patterns provide a framework to analyze the battle raging between bulls and bears.

• Most important trend predictor…

HEAD AND SHOULDER PATTERN…

THREE WAYS OF MAKING MONEY IN THE STOCK MARKET….

1) PEOPLE WHO HOLD FOREVER…..

EXAMPLE: BILL GATES…

These investors hold shares of a company, pretty much forever, and that is the bulk of their net worth.

THREE WAYS OF MAKING MONEY IN THE STOCK MARKET…. CONTD……

2) People who hold for a trillionth of a second….

EXAMPLE: GOLDMAN SACHS

High-frequency traders trade thousands or even millions of times in a second. They take tiny little arbitrages and add them up throughout the day. They rarely have a losing day.

THREE WAYS OF MAKING MONEY IN THE STOCK MARKET…. CONTD……

3) People who do something fishy.

EXAMPLE: HARSHAD MEHTA..

People who take all possible illegal steps to make lots of money ….

FIVE REASONS: WHY TRADERS LOSE MONEY…

I. Trading during the first half-hour of the session

II. Failing to hear the market's message

III. Ignoring which phase the market is in

IV. Trading for emotional highs

V. Over-eagerness in booking profits

CONCLUSIONS

• There is no role of emotions in stock trading.

• Have a good knowledge about the market before investing.

• Follow the market trends for better understanding.

• Know about the public’s perception about the company before investing in an IPO.

• Always remember – TREND REPEATS ITSELF….

THANK

YOU…..