THE Complete Beginner'S Guide: Simple Stockmarket
THE Complete Beginner'S Guide: Simple Stockmarket
THE Complete Beginner'S Guide: Simple Stockmarket
STOCKMARKET
THE
COMPLETE
BEGINNER'S
GUIDE
Anto Dominic Nathan
Contents
Introduction
Indices
Chart phases
What is trading?
Trading styles
Trendline basics
Short selling
Is 3k/day possible?
About us
I dedicate this guide to all the new and struggling traders out
to help you develop into the kind of person you need to become,
traders think they don’t have to learn a single thing. They believe
that they can buya “holy grail system” to trade for them and make
them rich while they sleep. Or they rely on the advice of some
markets.
You took decision to read this pdf because you’re serious about
This has been my daily experience and even traders who have
right way.
are the some of the top reasons why trading stocks is really the
perfect business.
No inventory
Compounding effect
lifestyle.
build this business with care and put in the quality time needed to
With your own trading business, you truly are master of your own
destiny. Your trading decisions will get better with time if you
put in the quality time and study needed to refine your trading
style. Perseverance will pay off big time. You really will
appreciate having more free time to enrich your social and family
life!
These are some of the thoughts that go into why I really pour my
heart into this business and deeply believe you can’t go wrong
with this business if you truly want to build a better lifestyle for
yourself.
have to know what you really want in this life, and then simply
keep asking the right questions till you get the answers you need
Your job is to keep feeding your hunger for knowledge and day
always continue to ask questions till they get the right answers.
path on the straight and narrow, and in the black, when it comes
What is a share?
JIM
JIM SHARE
PAN card
Aadhaar Card
Canceled Cheque
What is stock market?
In its most basic form, the share or stock market is the place
and its main purpose is to make sure that all the activities that
happen in the share market are fair and do not jeopardize the
Traders are the people who are looking to buy or sell shares
The Process
they release the details of their stocks that they want to sell
first time a company sells its shares to the public. This is the
After this, the company’s stocks can be traded between the sellers
and the buyers. This is the secondary market stage. But due to a
conduct the trade at the same time and place. Hence, stockbrokers
the broker who sends the order to the stock exchange. The stock
exchange then matches the traders buy request with that share’s
sell request.
Once both the parties (seller and buyer) agree to the price of the
decreases.
What is demat and trading account?
are held. If you buy 100 shares of Tata Steel, it will be held in
Like, when you sell these shares, they will be digitally removed
E.g Upstox and Zerodha have only 20 / trade. (i. e even if you
With regular brokers you will end up paying Rs. 20,000 just
market". There are many other indices other than these indices.
NSE goes up and it goes down when the latter goes down. The
These two are the major stock exchanges in the country. Most of
the stock trading in the country is done though the BSE & the
NSE.
make up the Sensex are selected and reviewed from time to time
by an “index committee”.
and time intervals. There are many types of charts available. But
most popular and widely used among them are Line Charts &
Candlestick Charts.
Basically in price chart, the X axis represents the time scale. The
unit can be month, week, day, hour, 5 min or few seconds. (The
Higher the time period, more detailed the chart becomes) & the Y
Line Charts
Line Charts are composed of a single line from left to right that
connects the closing prices (or any specified price data point) at
each specified time interval. The chart looks like a basic graph
For the most part, this chart may be a bit too simple for traders.
Candlestick Charts
The area in the candlestick between the open and the close price
If the stock closes at a price higher than the open price the body is
At any given time, the price can either rise, fall, or move
are short-term phases in which the price falls. As we will see, the
sideways phase. If the strength ratio between the buyers and the
These are the two words which represents the trends of stock
market.The terms "bear" and "bull" are thought to derive from the
way in which each animal attacks its opponents. That is, a bull
will thrust its horns up into the air, while a bear will swipe
moving upward then you can say that market is Bullish, similarly
of assets over a period of time. While the price of the assets in the
portfolio may fluctuate over time, the goal of the economic agent
The return is the profit from an asset. It is gain (loss) from price
paid.
Position trading
Swing trading
Scalping
Intraday trading
the price of assets. If they expect a bullish trend, then they would
go long on the asset. If they detect a bearish trend, they may short
sell the asset. Position traders may not necessarily try to forecast
the future prices of the asset, rather they try to ride the ‘wave’ of
the trend which has been firmly established, and benefit from the
a few days, to a few weeks. Once the trader holds more than few
than day trading since the time frame for holding trades is longer.
stocks will be moving up and down, but they will not be always
Scalping refers to where traders’ long (or short) assets, hold them
for a few seconds or minutes then close the position. Scalpers try
assets in the same day. Positions are not held overnight. All
positions are closed within the same day. Intraday traders try to
trading style is not working for you, but also requires the
past market data. The idea here is to identify price patterns and
and search for patterns and once these patterns are identified, the
highs made are higher than the earlier ones, and the lows are also
highs. If the peaks and troughs are neither higher nor lower, the
separate the daily short term noise in the stock prices and
bottom-up approach.
the industry. Only then do they refine their search to the best
top-down approach.
Trendlines
Trend lines are an important tool in technical analysis for both
connects two or more price points and then extends into the
time frame.
(Touch points) a trend line, the more significant and valid that
confirm the price trend before they enter a trade. MACD, Moving
is the price itself. If prices go up that tells the trader that people
Indicators vs. Price Action - Price Action tells you more, and
does so faster than ANY indicator. Many people believe that the
more indicators they use the better, but they are WRONG. Price
is the only indicator you will ever need. Besides price action, all
future.
few methods on using Dynamic Zones, but they take the back
If you sell a stock you don't own, you are shorting it. (Yes, it's
legal.) You are now short the stock. A short seller sells a stock
that he believes will fall in value (Price). A short seller does not
someone who already owns it. Later, the short seller buys back
the stock he shorted and returns the stock to close out the loan. If
the stock has fallen in price since he sold short, he can buy the
stock back for less than he received for selling it. The difference
stock prices. "Buy low, sell high" is the goal of both short selling
bought later.
short 100 shares of Reliance at 1700 per share. The stock market
Harsh buys back 100 shares of Reliance and closes out the short
and the purchase costs and pockets 70,000 from the short selling.
Risk to Reward Ratio
The risk to reward ratio concept is what will make you a winner
in the long run. Before you enter any trade, you have to know
how much money you will win if the market goes in your favor,
and how much money you will lose if the market goes against
you. Don’t never enter a trade in which the profit is less than the
amount of money you risked. If you will risk 1000 for example,
ratio of 1:2.
Let’s suppose that you took 10 trades with 1:2 risk reward ratio.
In every trade you risk 1000. You won 5 trades, and you lost 5
trades. So you will lose 5000.but you will win 10000. so the
benefits is 5000. This is the power of the risk to reward ratio, you
shouldn’t think that you have to win all your trades to become a
Key Points :
This is a question that many people have and the answer is Yes
you can, and much more from trading stocks, but it is far from
easy.
Most people go broke trying to trade the markets and the reason
for this is not having enough knowledge how stock market works,
not having a mentor, greed, fear, etc. One of the first things you
must realize is that you must treat trading as a business and not as
healthy state of mind, that you know how to manage money and
that you have discipline. It also requires that you learn the skills
of the trade.
Warning: Trading is not for people who are looking for an easy
or a quick way to make money. You must pay your dues, you
If any or all of these points apply to you, don’t feel bad, it just
means you’re like most other traders out there, now you need to
step outside this generic thought process and start thinking like the
professionals do. The problem with most new traders is they are
this is actually a big killer and they don’t even realize it.
Breaking the Myths
For the past few years till today, there are more and more people
financial freedom one day. Other than the real possible income
and freedom that stock trading can offer, I think that most people
“quitting your day job in weeks” are the most successful bait for
most people.
them money 100% of the time. If you ask those new traders who
have just joined the arena of stock trading whether they think that
have a Holy Grail system that generates them money day in day
out but the actual fact is there is no Holy Grail system in the
world. Even the most successful trader makes 30% losing trades
them. The reason why there are successful traders and there are
their trading plan even when they are losing 3 days in a row. This
is because they know that the strategy works in the long run and
you really think that you will get 5 heads and 5 tails? But if you
were to throw about 100 or 1000 times, you will most probably
accuracy of about 60%, you need to trade long enough for the
think that the market will either move up or move down only and
forget that the market can also move sideway. With the additional
Myth #3: You can make money with the click a button
traders joining stock trading loses all their capital within their
The main reason for their failure is their lack of knowledge and
practice in this field. Stock trading is like any skills that you want
to learn, you need to put in hard work and effort to learn the rope,
This is another common myth that most traders believe. They are
indicators and the best trading strategy. When they are handed
strategy and most of them trades with no indicator at all. The key
You can give 2 person the same strategy and later find one person
making a living with it and another losing all his money. This is
it the how you trade with it that eventually makes you successful.
If you have been reading our post & stories in Instagram, you will
capital in beginning. This is the best time for anyone to fine tune
About Us
HI
I'M ANTO DOMINIC
I'm a 23 year- old Stock Trader with a MBA Degree,
Founder of S I M P L E S T O C K M A R K E T
from Sivakasi, Tamilnadu
I believe trading is not easy like getting an MBA degree,
it is a long term game and it all depends on one winning
strategy and winning team to guide you in live market.
After trading with many indicators and blowing my money,
Finally Today I have....
Pure Price Action Strategy
Dom
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