which subject is best for stock market?

Beginner’s Checklist for Stock Market

Stock Market for trading minds

If Charts and Technical patterns interest you, it seems that you are drawn towards Technical Analysis. So if you are new to this field, here are few guidelines you can follow to build your base in Technical analysis.

1. Read Good Books

Start with good books on Technical Analysis like-

a. Reminiscences of a Stock Operator (By Edwin Lefevre)

b. Trading for a living (By Alexander Elder)

c. Technical Analysis of the Financial Markets (By John J Murphy)

d. Japanese Candlestick Charting Techniques (By Steve Nison)

e. Encyclopedia of Chart Patterns (By Thomas Bulkowski)

2. Learn Technical Analysis

If you are willing to learn technical analysis from very basic, you can take up a course at elearnmarkets.com. Click here to know more about the Technical Analysis Course certified by NSE Academy.

Moreover, you can also go through the study material or videos in google to develop an understanding of technical analysis.

3. Read articles and blogs

You can regularly go through good blogs or articles or videos like-

a. StockCharts

b. Tradeacademy

c. Elearnmarkets.com

d. Trading with Rayner

4. Virtual trading is important

Paper trading is a good way to track your performance and understanding on the subject. Moreover, you can use NSE Paathshala for virtual trading. This process is very important before entering into the actual trade in the market.

5. Market Psychology

Psychology plays a very important role in trading just like in a game of chess or in athletics. As a trader progresses from novice to expert, the understanding of both individual and crowd psychology becomes extremely relevant to become a successful trader apart from gaining the basic knowledge like chart patterns, risk management, market structure etc. With the market becoming extremely competitive day by day, traders are facing a lot of challenges which are sure to test their skills and limit of their psychologies.

6. Follow good traders

Start following good traders in the world. Read about them, their trading strategies, their books, etc and it will surely benefit you in your trading career in the long run. Some of the well-known names in the industry are as follow-

a. Paul Tudor Jones

b. Jack Swagger

c. Alexander Elder

d. Martin J Pring

e. John J Murphy

7. Opt for Professional degree

You can opt for CMT course, to gain specialization and detailed knowledge on technical analysis.

Stock Market for Investment minds

1. Books should always be the first step

Someone has rightly said-

“Books are one’s best friend”

Some of the good books on fundamental analysis are as follows-

1. The Intelligent Investor by Benjamin Graham

2. Competitive Strategy by Michael Porter

3. The Essays of Warren Buffett by Lawrence Cunninghan

4. Buffettology by Mary Buffett and David Clark

2. Education is important

Fundamental Analysis is a vast subject which starts right from reading Annual Reports and sector reports to analyzing financial statement to the valuation of the company. It’s better to get proper education on fundamental analysis, equity valuation, and financial planning. You can opt for a Fundamental Analysis course on Elearnmarkets.com

3. Read annual report of companies

There can be no better piece of information about a company than annual reports. It may look like a collection of pages which companies send at the end of the year and reading it may seem to be a time consuming and a boring job. However, it is a very valuable piece of information about a particular company. In the annual report, the company’s management discusses the important aspects about the company like industry performance, its vision for the long term, opportunities and threats faced by the company, company’s historical performance etc.

Some of the important things which we need to focus while reading the annual report includes-

a. Chairman’s letter

b. Financial highlights- It gives a snapshot of the performance of the company.

c. Director’s report and MD&A section

d. Financial performance- It provides 10 years summarised track record

e. Financial statements

Few of the important areas where we should focus while reading annual and comparing the annual reports:-

i. Debt scenario of the company

ii. Salaries drawn by the key personnel of the company

iii. Actions by the leading shareholders of the company

Feel free to ask me in the comment box if you are having any further doubts

hope you find it helpful

Good Luck!