Before telling you the Best Way to Learn About Stocks and its benefits, we would want to tell you about a very interesting small incident.
One day, my nephew wanted to have fun in the swimming pool as he saw his schoolmates having a loving time in the pool. He thought it was easy and effortless and hence he dived into it. Immediately, he realized that his assumptions were wrong, and he committed a grave blunder as he was completely unable to swim. Later he got assistance and got out of the pool.
The same happens in the stock market when one dives in without basic knowledge of Stock Fundamental Analysis, Technical Analysis of Stocks, and Psychology. You might not drown, but your capital will. Hence, today we are going to discuss Best Ways to Learn Stock Market so that you do not fall into the stock market pool with your capital.
Yes, the Best Stock Market Online Course will not only empower you but also equip you with a great hands-on experience through mentorship. Below are the courses that serve as a must for a Stock Trading Course or investing course.
1- Fundamental Analysis of Stocks and its system
A course on Stock Fundamental Analysis will help you to study, analyze, and understand the qualitative and quantitative aspects of a company. Stock Fundamental Analysis teaches you an effective way of analyzing the nature of the business, and management. It covers the analysis of various financial ratios of a company along with an assessment of the financial sheets.
Fundamental Analysis includes ratios such as Price to earnings ratio, ROE, ROCE, and Debt to Equity ratio. Further, it includes an analysis of the Balance Sheet, Cash flow statements, Profit and loss statements, etc. Analyzing all of them helps in understanding and analyzing the financial health of a company.
2- Technical Analysis of Stocks and its system
Technical Analysis is the study of stock price’s past behavior to interpret the current trend and its behavior in the upcoming future. Technical analysts believe that price and its history contain all the required information and it is more than sufficient to analyze charts to predict future prices. A Good Technical Analysis Course in Mumbai or anywhere in India should cover the following topics: Chart Pattern analysis, Price-Action analysis, Candlestick pattern analysis, different scalping strategies, Intraday, swing, and positional strategies, methods to analyze and use indicators, and lastly limitations of technical analysis.
Technical Analysis in conjunction with Fundamental Analysis will help you take more better profitable trading and investing decisions.
3- Behavioral Finance:
The study of the psychology of investors and traders in financial markets is termed as Behavioral Finance. It focuses on explaining the impact and implications of emotions and personal biases into investments and trades. Free Stock Market Course Online should encompass Behavioral Finance which teaches how to handle emotions during correction and controlling greed during bull runs.
4- Macro-Economic analysis
Fundamental and technical analysis gives investors/traders an idea of how a stock can perform in future. But it is important to not ignore the macroeconomic factors that affect entire markets. Macro-economic analysis includes study of unemployment, interest rates, inflation, exchange rates, economic growth of a country i.e., GDP, etc. and their impacts on the stock market.
Macro-economic analysis of the markets plays a major role helps in predicting an impending stock market correction.
5- Course on Future and Options
This is an advanced section of the course that relies heavily on quantitative and economic arguments of derivative contracts. With the help of the Derivatives Course, you will be able to generate income in the stock markets by deploying simple yet effective strategies. Further one can hedge their investments using these strategies. But they need to be used carefully as they might prove to be weapons of mass destruction, as quoted by Rev. Warren Buffet.
6- Practice Through Live Investing
Practice makes a man perfect. Let us change this quote into a more relatable one. Practice makes you a better trader. It is impossible to get all your trades correct all the time. But then, to ensure a high success probability of profitable trades, it is important to keep practicing. Stock trading is a hard nut to crack without live market trading. Putting your money in live markets will bring your skin to the game.
Treat your losses as the fees paid to learn the market. Remember to learn and never repeat those mistakes. This will boost your practical knowledge, multifold.
The presence of an experienced coach will save you from drowning yourself and help in getting the best out of yourself.
Effective Step-By-Step Way to master markets after a Stock Market Course:
• Start with reading good basic books alongside trading in the market with a small capital. First, start to read in general, further as you move on, try to connect the dots by analyzing and understanding.
• Analyze which trading best suits your personality and accordingly take trades. Like scalping, intraday, swing, positional, price-action, etc.,
Example: Say, you like price action strategy. Then study more about it by reading books on it, watching videos, learning, and taking advice from your mentor, etc.
• Back test your trading strategy with the past data. If your past data offers a minimum of 50%-55% accuracy with 1:3 risk-reward, then the system you’re working with is excellent.
• Once you get a fair idea on your trading strategy and setup, then stick on to it. Remember, any good strategy must have an entry price, stop-loss, target price and a favorable risk-reward ratio.
• Once you have profitable experience of 3 months of testing your setup with smaller capital, you can deploy your actual capital. Make sure that you never risk more than 1-2% of your trading capital onto one single trade.
• In this process, you will again commit some mistakes. But remember to pen down your mistakes and learn from them. Promise to not commit those Stock Trading mistakes ever again.
It is important to note that trading and investing are like any other skills which demand persistent efforts, focus, determination, and dedication. With experience you can make this journey profitable.
At GSF, our Irresistible Stock Market Architecture course includes all above the concepts and methodologies along with several case studies of the past with live market scenarios, meet ups twice every month, and interactions inside a like-minded community with assistance from a friendly support team.