We are going to discuss lot about stock market. Actually we will talk about the basics. So, are the basics not useful? I think basics are the most important Fundamental Aspect. If your basics are not clear and strong, then youcannot do anything, whatever you want to do. So, we will talk about the stock marketbasics today. We will do a discussion aboutthe important aspects. That what is what and what kind ofknowledge you guys need. If you want to trade properly and earn money in this.OK. So, we will talk about it. So, what is stock market? These are two words, stock and market. Market is obviously like a fruit market ora vegetable market. There you get fruits and vegetables andhere you can find stocks. What are stocks, it’s nothing, it’s just a partnership,ownership or a share in a company. Means if a company has five crore shares, even if you have twoout of those. You own two of them. Then you are also a tiny owner of that company.This is known as ownership. OK. But, what is the benefit of doing so? It’s nothing but a simple concept that you should have a Demat Account,like this is an Angel Broking Demat Account Here you can see the name of the stocks, Asian Paints,Axis Bank, Bajaj Finance. I have interest in Britannia. I want to buy that. So, I will click on ‘Buy’, will write 500 shares,will finish it by clicking on ‘Quick Buy’. Market is closed right now so, it is asking forafter market ‘AMO’, well. Coming back to the market so, that is the whole concept,you have to buy at lower prices. And sell at higher prices. This is how you have to work. This you must be already knowing that is why you are watching this video. Come, now let’s start about the basics. So, guys in India we usually consider the stock market as two entities.NSE and BSE. National Stock Exchange and Bombay Stock Exchange. We prefer to tradein NSE because of the high volume and Government regulations and everything. So, we will talk about it. I am going to skip other thingsbecause I can’t tell every other thing in details. But, I will cover all the major topics in this videofor you guys. So, let’s go ahead.So, what is NSE? It’s India’s stock exchange. It’ nothing but a buildingin BKC, Bandra Kurla Complex in Mumbai. And what is inside, a few people sit there. Computers and serversare there. Super fast computers are there. What is happening with these computers? In those computers, the companies with Demat accountsand NSE is connected with them. And we traders are connected with the Demat accounts. If I have to buy say, Britannia, I will tell him, this will tell this Dematcompany will contact the other broker. This everything is happening through computers. And say thereis some Trader no. 2, who wants to sell Britannia. So, it will immediately sell, it will travel like thisand will reach immediately to me. That’s fine. This is the concept. This will charge a little fee from me and NSE will charge them.So, this kind of network through internet. Buy-Sell of shares. Why am I doing so?Because I feel Britannia will rise, that’s why I want to buy it. He is feeling that Britannia will fall and he has to book the profit that iswhy he is selling. This is how the circulation happens. This is known as The working of stock market or the stock marketexchange in India, NSE. OK. Guys, then, now we will talk about. Three types of market participants. There are three types of market participants, whoparticipate in the market. OK. The first type is known as retail investors. Retail investors means you and me. People like usare known as retail investors. Those who trade with a nominal amount. Second category is, these are known asHigh Network Investors. Means those who invest more money to trade. Like you all musthave heard about Rakesh Jhunjhunwala. So, you know him. The third type are known as Institutional Investors. Institutional Investors means companies. Mean the large organizations like LIC.Big organizations who buy shares. Like the Aditya Birla group.Like the foreign companies. Like Bank of America, Wells Fargoand many more such companies. So, these can further have two categories. Foreign Institutional Investors,which are foreign companies. Domestic Institutional Investors. Now, I want to ask youwho is going to be the most important among these three? To my surprise, lot of people answerRetailers. Wrong, the hierarchy goes like this. The most important folks are these. If they have to buy something like HDFC is a good stockand if they want to buy it. So, they cannot buy it in a single go.They have to buy a large quantity. Slowly in a long term, they take HDFC to an uptrend, takeICICI to an uptrend or like Reliance. So, most importantly you will understand that how the InstitutionalInvestors think or which stock are they interested in. Definitely, you will become a successful person in stock market. We spoke about the three types of market participants. Three types of Let’s talk about trading styles. We have already discussed thethree types of market. Bullish market. Let’s talk about this.There are three types of market also. We can discuss that in this market also.It’s a small concept. Buddy, there are three types of market. First is up-trending market,we call it as up-trend. Fine. Second is down trending market and we callit down-trend. Right. Third one is sideways market. Some people call itChoppy market as well. Choppy… It revolves side ways only and it it really difficult to earn moneyif it is in a narrow range. You know how to earn money in this. Buy at low price and sell at high price. And what do wedo on a down-trending market? How do we make money, I have made a video on thisconcept of short selling. If you have an idea that market is going to fall,short the market at this point. You will gain profit when it will go down. So, this is howyou can earn money in a down-trending market. If you have not seen the concept of short-selling thenplease watch it. OK. Now important thing comes before you trade, you needto know that there are three types of trading style also. If you don’t know your style, you won’t be able to work. So, what are the three trading styles?First one is… People call it intra-day. Intra-day means the market starts at 9.15 and we do good trade till 3.15.But, whatever buy-sell we have to do, we have to do during this time only. Right. You have to buy and sell that also and have to exit after selling.Means you can’t hold. If you, If you don’t hold the position then it is calledintra-day trading. Fine. Other type of trading is, When it is for more then one day. People call it swing trading. Swing… Or some call it positional trading as well. Fine. That I have taken a position for two weeks orone month or two months or whatever. And the third type of trading is known as theLong-term Trading. We call it Investment directly. When your horizon, time-horizon is like two years, five years, ten years,twenty years or more, then you don’t call it trading, you call it investment. OK. Fine, so three types of trading.So, what kind of trading you want to do? I think you must be thinking that I want to dothe investments. Or may be I want to do Intra-day or may beI want to do one or the two. OK. I shall tell you that in order to do all three, 1-2-3, What you want to do, it’s fine. But, first you understandwhat is the qualification for doing it. There are two qualifications, first is money,how much money do you have? And then how is your personality. How is your nature?Are you aggressive. Are you like, do you have patience. Are you able to be patient becausefor number three, it takes more money. OK. For this you need more money. And more patience. A lot of patience. And lot of money too. If you are going to invest ten thousand, fifteen thousand, twenty thousandfifty thousand, you are not going to get anything. Means, its nothing. You need to have good amount of money. I think at-least five lac, ten lac, fifteen lac, twenty lac One crore, two crore. CR’s. That is called investment. OK. If you deposit it monthly then also, it is fine. But, don’t thinkthat will earn money for you like trading. So, Investment is something guys where more money is needed and personality guys,like during the Covid times, the market fell pretty much. Then also you didn’t sell. Instead you bought more to accumulate.That is called an Investor. But, if the market fells a little and you are worriedthat your money will went down the drain… You will not be able to sleep and starthaving sleepless nights. So, you can’t invest if you don’t have patience. Now, what is swing trading? You need little lessmoney for this. Like if you trade in future lot, if you don’t know aboutfuture lot, I will upload a video for that too. If you trade in future lot for a month, for 1.5 monthsor for twenty days. Two days or four days, then you need tosleep in nights. So, you need a little patience. Say, I have bought this trade and it should giveme money after four days. Bro, it should do like this. For this also, you need an investment oftwo lakhs, five lakhs or around ten lakhs at-least according to me. Right. And lower patience level is needed in this… Obviously patience is needed but of different sort. Intra-day trading. You come in the morning, youbuy and sell today itself. What is the difference here? Here you geta market margin. Margin means, a few people call it leverage also. What does leverage means, if you have one lakh rupees in your account,so your broker like Zerodha or… Angel Broking gives you… a margin of ten times. Means if you have one lakh rupees in your account,then you can buy shares of up to ten lakh rupees. So, your profit and loss depends on that thing. So, the strategies aredifferent to trade all three. Money needed is different. Different personality is needed. So, you just see whatever is suitable for you.According to me, if you start from this… With a smaller capital. So, at-least you will understand the market movement. Eventually then you can go for swing trading. And investment is a totally different game. OK. I think I have explained you now that there arethree types of trading style. Fine. Three types of participants are there and three typesof market movements are there. Good, we got some knowledge about the market.How to trade in this market and everything. OK. Come let’s start and move little forward. In order to buy and sell a stock at sometime,there are two kinds of analysis. That one can do. OK. Usually there are two types of analysis and many new and differentnames are there but, these are the two main things. One is Fundamental Analysis. Another one is Technical Analysis. These are two tech analysis,which you should know. OK. So, let’s talk about the both. First let’s talkabout Fundamental Analysis. What is Fundamental Analysis? Getting to know how the companyis fundamentally is known as Fundamental Analysis. What do we do in this? We look at theworking of the company. Check it’s balance sheet. How can you checkthe balance sheet? You can do it. Go to moneycontrol.com or economic.com, there you can findbalance sheets of all companies. You can have a look. What was the performance in the past quarter?How much revenue was generated? How much were the expenses. How many stocks are remaining,how much debt they have on them… How much they have to recover from others,how much stock do they have… How much tax did they paid, how much…you will get all the things, Means by looking at the balance sheet, looking at the growth,if the turnover in this quarter is five thousand crores… which was four thousand crores in last quarter.Means we are in profit, it’s going upward only. Doing such kind of analysis is known as Fundamental Analysis. OK. That’s it. What is the meaning of Technical Analysis, wherethe technology joins in. Means where like this iPad comes, charts comes,you opened this chart and saw a candlestick pattern. It’s loading right now. This green-red, which you can see here… You understand what you are able to see here. If my market is… able to cross this level, then I will buy at this level.Means anything, you have to understand it. Trading with the help of charts is calledTechnical Analysis. Now, which one is the most important? This is not right. OK. You cannot compare between you right eye and left eye, thereis no way. My which ear, which finger, little finger is not good… This is all rubbish. So, obviously both are importantat their own places. If you… want to do long-term investment… then definitely do the Fundamental Analysis andbuy at the right level. But, if you say that you have to do the intra-day trading, I have to buy Reliance tomorrow only,I know fundamentally it is a good company. Reliance will grow tomorrow, noit’s nothing like that. You can be wrong.You are wrong. When do we use the Technical Analysis,when we have to do intra-day trading. If you have to it for a couple of days or weeks,Fundamental Analysis will be of no use. When I see charts… I don’t even look at names. That doesn’t matter to me whether it is thechart of Axis bank or IndusInd bank or is it Kotak Mahindra bank. What I see is that these are some of my levels,these are some of my regions. If something like this happens, I will buy. this is called Technical. So, I hope I made… like this concept… easier for you that what is Fundamental Analysis andwhat is Technical Analysis. OK. Now there is a word called NIFTY, which is called Index.I will make a separate video for this. And I will share with you. So, guys, I have cleared a fewbasics here. What is a market buddy? And what kind of people comes in. How do we do analysis… I will not talk about the Fundamental Analysis now. Let’s talk about the Technical Analysis. What is with the Technical Analysis, you have to full chart… Complete Price Action, what is Price Action?My first video is Price Action based. Means I have made the video on this. Just see.I have made a basic one. I will make another one aftertwo, three, six months. Price Action Advanced. I will tell about the advanced concepts in that. But, for nowyou just watch the Price Action now. So, one trading is called price action trading, and if weapply certain indicators on that… So Then it becomes Technical Analysis. There are many things in Technical Analysis, we tradetechnically using them all. Let’s suppose, a little later,we can’t go in details right now. we will discuss about it in a separate video.Let’s assume that we know how to do the trading now. Means now we know how to do the Technical Analysis.So, can we trade now? Definitely we can do. Go to you Demat account,click on buy-sell… But before that you need to apply… you should havea Trading Plan. What do you mean by Trading Plan?I will tell you what is Trading Plan. So, you need to learn how to buy-sell,then you need to have a plan. Then you need to have a risk management plan as well. And this is very important. If you don’t follow this, then thingsmentioned above are of no use. But, this risk management and psychology… But only the one who knows Technical Analysisshould talk about this. So, first of all you need to learn the subject. You can only learn by coming into the market… Learning from a mentor… Watching these kind of videos… Or else Whatever way you like to learn. After that. I will talk about Technical Analysis a little later.Let’s talk about Trading Plan, what do you mean by Trading Plan? Buddy! Trading Plans many times you must have…If you are an experienced trader… You must have read it everywhere that make a Trading Plan, make a Trading Planyou must have tried making it also…may be you have made it also. I don’t know how you made it but, I used to get very confusedthat what all Trading Plan should have. So, I did this… ‘S’ ‘R’ ‘P’ ‘S’ ‘Q’ ‘T’, I fixed these six letters like this.’S’ ‘R’ ‘P’… ‘S’ ‘Q’ ‘T’, if you… this… I know it doesn’t make any sense but, try to say’S’ ‘R’ ‘P’ ‘S’ ‘Q’ ‘T’ This concept, what does it mean? You have to know which script or stock you are going to trade.Means you need to do a little homework. R means if you have a reason like I want to trade Reliance,because there is heavy investment in Reliance. It’s coming through Facebook or some company in Abu Dhabior it’s coming from here and there So, I have a reason to trade Reliance as it is going toget a lot of volume. I should have a plan, ‘P’ for plan.What kind of plan? I will start observing market at 9.15 in the morning andwill not do anything till 9.30, if by 9.30 this level breaks… This pivot level or I have drawn some horizontal line orthis trend-line, anything… it can be anything. Then I will buy this. And as soon as I will get 30 rupees in this, I will exit. This is known as plan. In your trading plan you should be aware whichstock you are going to use You should know the reason, there must besome reasons for you to trade. And you need to have a plan like I will do this ifthis happens this way. Then meaning of this ‘S’ here is Stop Loss. Stop Loss is an order, Guys Whenever we trade, we give an order along.Like I am buying at 100 rupees, If it goes to 96 by mistake, socut my trade by 95. Means we give an order to the broker thatyou should stop my loss. So, that I don’t incur further loss. So, Stop Loss is very important. It is a very wide subjectthat I have to cover. in a lot of videos Still try to understand the concept. Don’t try to trade right now.Try to learn. OK. So, Stop Loss you have to apply. And quantity is anotherimportant thing with the Stop Loss. If there are 2 lakh rupees in your account,do you want to buy for 2 lakhs in a day. If you buy and you incur loss, then? If there is loss then how much is the loss?To manage all this, you need a Risk Management Plan. So, ‘S’ and ‘Q’ are part of risk management.We will talk about it as well. This video… I am going to make it very informational for you. Now what should be your quantity, if it for 2 lakhs,then you won’ buy it for 2 lakhs rather you should buy for we will discuss. So, you should know the right quantity. ‘T’ means buddy, that you have to give some time. This I am not talking in terms of time frame thatwhich time frame you have to observe. I am talking about that time when this,when this… What is trade? To buy… And then sell it. This is what people know. With a press of a button you can buy and sell and that’s it., no bro… The time in between this… Which is almost 80% of the day, we call itTrade Management. To sit with patience. Not to take any stupid action. Like increasing quantity if you arefacing loss If you are gaining profit, then to escape from any loss,you exit early. This is all that happens. So, you need to have patience.You need to give the time. So, this is called Trading Plan. Of a kind. So, you need to have a trading plan. which You should not think at 12:00, that what should I do. No.You have to check this, whether the things happened accordingly or not. If the things have happened according to the Trading Plan, then you are doing good. I hope I made this also clear to you, thathow the Trading Plan works. Let’s discuss Risk Management as the last thing. We will touch this in detail later.Let’s take a little… example here. What is Risk Management? Going ahead and managing a risk. So, a very vast topic, even I used to look for videos on this but, I am not able to find any satisfactory video yet. But, recently after a lot of… research, I have got this understanding and I am myself following this thing. And since I have started following, the results are tremendous. Don’t go for that big MTM’s guys, looking at hugeprofit’s and loss won’t be of any benefit to you. consistent money is more important. And keeping your losses small. See, keeping your losses small is most important. So So A lot of things are there. See I have written this here also. Big profit will be fine, break even will also be good but,there shouldn’t be a big loss. Huge loss shouldn’t be there, how would a big losswon’t happen? There is only one way. Risk Management.How, let’s discuss. Guys tell me one thing, have you ever been to casino? Have you ever been to Goa or to Deltin,have you all gone to Big Daddy casino? Have you visited any foreign casino? If you have ever been there, what have you seen?Is the casino runs always in profit or in loss? Definitely it always incurs profit. Why? Because they are lucky?No, there is nothing related to luck. They have a mathematical edge. Mathematical edge means they have set the game like that. The whole game is rigged. Rigged means that it’sbeing set in such a way that they have a mathematical edge. Over the players, over the gamblers. At the end, in the casinos, they always say the house always wins, they say that often. Why, because they have a mathematical edge. That’s why… Gamblers always loose… Casino always earns money. So, stock market gives this edge to you also. If you keep your mathematics like that So that, Whether it is recurring profit or loss but, at the end of theyou should make profit only. How will this happen? It can happen like if we talk about Roulette, in thatthere are 36 numbers, 18 black, 18 red like that… There is a 50% chance. Whose chance? Casino versus Gambler. But, why thecasino always wins, because there is a zero as well. And European Roulette’s have two zeroes. So, definitely at the end of the day. Even if it is 52% or 54%, the casino has got little edge. Right. So, that is most important thing. Now, what kind of edge you can have?Let me tell you and now this video is going to end. So, let’s talk about Guys Let’s suppose if we take ten trades. Ten trades. Right. You take ten trades. And I assume that your winning percentage out of this is… How much percent it is? You don’t know. But, what do feel how much percentage, how many trades out of ten can be successful? eight, nine, seven… I say it will be five. We get five wins and five losses. OK. Let’s take a 50% win rate. Fine. OK. This is the first concept and we will use it,now the another thing is If we, Ten thousand. If we talk something… Whenever we trade and I buy something for 100 rupees,I assume my stop loss at five rupees lower. I keep my target 110, So, if I incur loss then how much it will be,let’s say that I always… 10… I trade with 100 shares always. OK. If I incur loss, how much it will be,5 rupees. Right. It’s 5, so five into hundred… Loss will be of 500 rupees. And if I incur profit then, how much will it be? Do ten into hundred, how much is it, thousand rupees. Profit. This is called Risk. Reward Ratio. That my risk is of 500 rupees and profit is for 1000 rupees.Means, 1:2 is my system. So, many people get 1:3 trades also or some might get 1:1 as well. People even 1:5 trades as well. But, what I like to mention is that even if we take 1:2 trades… Good quality trades. Then, How much will be the loss… 500 rupees. How much will be the profit?1000 rupees. How much money will I earn in five wins? And tell me how much will I loose in five losses? If there will be five losses then, Tell how much will be my loss How much is 500*5? 2500 rupees will be the loss… And if it is profit, then how much it will be? Do it once, 1000 into… five, Five thousand. So, what happened overall? Are you in loss or are you in profit? So, overall you got a profit of 2500 rupees. So, this is called that edge. There is a book also on this topic titled ‘Trade like a Casino’ This is a very important phrase. You should trade like a casino and not like a gambler. So, if you keep a mathematical edge… limit you stop loss level… You have to dive in really deep and we can’t do it right now.So, I hope I am able to give you an understanding that if you know analysis. if you follow a plan, and if you apply Risk Management then, at the endwhere can you reach? you can be positive. So, this is all. What trading is about. So, this is it. This was the today’s video for you.I hope… this video added some value in you life. And you people enjoyed. And… Now it’s just that I will plan to make new videos for you. I will try to bring new videos every week. Definitely you will be able to learn a lotfrom these videos. OK guys, so thank you so much. And, share, subscribe and like this video. Thank you. Hi OK.