Are you searching for the Best Online Stock Market Courses in India to learn trading and investing? Let us help you!
Amid countless Share Market Courses Online, it has become very tough to find the Best Online Stock Market Course for yourself Today, we are going to discuss a few important topics that should be a part of the Best Professional Stock Trading Courses for Indian markets.
1. Fundamental Analysis Course:
Whether you’re an intraday, swing, or positional trader or a long-term investor, having a good understanding of fundamentals is a must. Unless you know which stocks are a trap, you’ll continuously make losses even if you’re trading. The top five things to take into consideration while looking at the fundamentals are:
Ⅰ. Profit and Loss Statement:
Other names: Earnings statement, expense statement, statement of profit and loss, statement of operations, statement of financial ratios or income, income statement.
A Profit and Loss Statement summarizes the revenue, costs, expenditure, etc. incurred during a quarter or fiscal year.
The two important terms in the P and L statement are top line and bottom line.
Top line refers to the gross sales of a company. Top-line indicates the efficiency of a company in generating sales and revenue. Since it is the the first item on an income statement, it is termed as “Top Line”.
Bottom line is the company’s net income or the profit after tax (PAT) that is achieved after deducting all the expenses from the revenues. The bottom line describes the efficiency of a company in managing operating expenses and spending.
Ⅱ Cash-flow Statement:
A cash flow statement tells you how much cash is entering and exiting your business. It primarily tells the amount of cash you have on your hand for a given period. Following are the three major components of the cash-flow statement:
- Cash flow from operating activities.
- Cash flow from investing activities.
- Cash flow from financing activities.
Professional Stock Trading Courses discusses more cash-flow statements and how to analyze them to measure the effectiveness of a company.
Importance of a Cash-Flow Statement:
A cash flow statement (CFS) is one of the most important measures of a company’s financial strength, profitability, and long-term outlook. With the help of CFS, you can determine whether a company has enough cash or liquidity to pay its expenses.
A company can use a CFS to predict future cash flow, which helps with budgeting and forecasting matters.
Ⅲ. Balance Sheet And Financial Ratios:
A company’s assets and liabilities form an important part of a Balance Sheet. These are again classified as either short-term or long-term. Short-term assets include cash and accounts receivables. Property, plant, and equipment are long-term assets.
Similarly, short-term liabilities include accounts payable and wages payable. While long-term liabilities include bank loans and debt obligations.
Using a balance sheet, investors can derive various ratios known as Financial ratios that immensely help in determining the financial health of a company. Financial ratios are the heart and core of Stock Fundamental Analysis. The six important financial ratio groups are:
- Liquidity Ratios – Current ratio, acid-test ratio, cash ratio, operating cash flow ratio.
- Leverage/Solvency Ratios – Debt ratio, Debt to equity ratio, Interest coverage ratio, Debt service coverage ratio.
- Profitability Ratios – Return on equity ratio, return on assets ratio, operating margin ratio, gross margin ratio.
- Efficiency Ratios – Assets turnover ratio, inventory turnover ratio, days sales in inventory ratio, receivables turnover ratio.
- Market Value Ratios – Book value per share, Dividend yield, Earning per share, Price-Earnings ratio.
- Coverage Ratios – Times- Interset earned, Debt- service coverage ratio.
It is important to note that different industries simply have different ratio expectations. I recommend you to enroll in the Best Stock Trading Course In India so as to have a wide deeper knowledge of how to analyze and interpret these ratios.
2. Technical- Analysis Course:
Using Technical analysis, the stock prices are forecasted with the study of past market data. With this analysis, trading opportunities are identified using the price trends and patterns on the charts. The target, entry, exit positions are calculated using the analysis. This analysis works on the ideology of- “History repeats itself”. The main subtopics to give extra attention in technical analysis of stocks are:
• Chart types
• Trends and trend lines
• Support and resistance levels
• Candlestick analysis and patterns
• Demand Supply strategy
• Momentum indicators
• Moving averages
Behavioral finance is the most neglected part in the majority of the stock market courses in India. It is one of the major aspects which when not properly studied, can land all your technical and Fundamental Analysis of stocks intof Stocks can go into the trash.
Behavioral Finance is the study of how psychology affects retail investors and financial markets. It explains why investors sometimes make decisions based on personal biases instead of facts.
3 . Combination of Technical, Fundamental, and Behavioral Analysis:
Technical analysis of stocks is the study of the price of a security, whereas
Fundamental analysis of stocks is the study of the value of the security.
The study of effects of human psychology and emotions of traders and investors in the financial markets is Behavioral finance analysis. If these three are merged, then one can find the best market opportunities.
When you analyze a technical chart of a stock, it means that you’re merely looking at it’s historical price. The reason the price moves this way is due to sentiments or the change in the fundamentals i.e., the intrinsic value of the security.
Example: Take any five stocks from Nifty50 and compare their behavior of prices. One of the best examples can be the decline in the share price of Asian paints when there was an increase in the crude oil prices.
4. Futures and Options/ Derivatives Course
Futures are a type of derivative contract in which you one can buy/sell specific securities or assets at a set future price and a future date by entering a contract at a lesser price than what it would have cost if purchased directly from the Equity segment.
Types Of Futures:
Ⅰ. Financial Futures:
This includes currency futures, interest rate futures, index futures, stock futures, etc..,
Ⅱ. Physical Futures:
This includes metal futures, commodity futures, energy futures, etc..,
An option contract is a right, but not and obligation for its buyer to buy or seller to sell the underlying asset on or prior to a fixed date at a fixed price. Options are a wonderful way of trading in stocks without actually owning them.
Types Of Options:
Call Option: It gives the holder the right to buy a specified quantity of an underlying asset.
Put Options: It gives the holder the right to sell a specified quantity of an underlying asset.
We know that there are several market terms which sound simple while others seem complex! But with time you’ll learn, practice, and master the required skills. So, keep learning with us and practicing!