13.1 – Dig deeper
Congratulations! If you’ve read all the chapters and scrolled through the numerous comments in each chapter, then that means that you dont have a passing interest in stock markets but rather a genuine interest to learn and profit from the market.
I guess you are now warmed up to dig deeper!
The objective of the first module is to give you a quick hands-on introduction to the stock markets. In our endeavor to introduce the stock markets, we have carefully selected concepts you need to know, especially if you are new to markets. At this point, it is a good sign if you have many unanswered questions. You will find your answers as we proceed to other modules.
Before we proceed further, you need to understand why we have so many different learning modules and how these modules are interrelated. Here are some of the modules that we will cover in Varsity.
-
- Introduction to Stock Markets
- Technical analysis
- Fundamental Analysis
- Futures Trading
- Option Theory
- Option Strategies
- Markets & Taxation
- Currency, Commodity, and Govt Securities
- Risk Management & Trading Philosophy
- Trading Systems
- Personal Finance (Mutual Funds)
- Integrated Financial Modelling
Apart from these, we will add other modules on the go.
13.2 – So many modules, how are they interrelated?
The idea of ‘Varsity at Zerodha’ is to create a repository of high-quality market-related educational content. The content will cover fundamental analysis, technical analysis, derivatives, trading strategies, risk management, financial modeling, etc. Each main topic is categorized as a module. So think of a module as reading a book with several chapters within.
You may wonder how each topic fits within the grand scheme. To help you get a perspective, let me ask you a question. To be successful in the markets, what, according to you, is the single most important factor? Success in markets is easily defined – if you make money consistently, you are successful, and if you don’t, you are not!
So if you were to answer this question for me, chances are you would think about risk management, discipline, market timing, access to information, etc., as the key to success in markets. While one cannot deny the importance of these factors, developing a point of view (POV) is even more compelling and primary.
A point of view is the art of developing a sense of direction on a stock or the index. If you think the stock is going up, your POV is bullish; hence you would be a buyer of the stock. Likewise, if you think a stock is going down, your POV is bearish; you would be a stock seller. Without a POV, you won’t know what to do in the market. Once you develop a POV, you add other elements like risk management, timing, macro & micro factors, etc., to improve the odds of your trade, but without a POV, you just can’t get started. For that reason, I’d consider developing POV as the most important factor.
Having said that, how do you develop a point of view? How do you figure out if the stock is going up or down?
One needs to develop a systematic approach to analyze the markets to develop a point of view. A few methods are using which you can figure out/ analyze what to buy or sell. They are:
- Fundamental Analysis (FA)
- Technical Analysis (TA)
- Quantitative Analysis (QA)
- Outside views
To give you a preview, here is a typical illustration of a trader’s thought process while developing a POV (whether to buy or sell stocks) based on a particular method of analysis –
FA-based POV – The company’s quarterly numbers look impressive. The company has reported a 25% top-line and 15% bottom-line growth. The company’s guidance also looks positive. With all the fundamental factors aligned, the stock looks bullish; hence the stock is a buy.
TA-based POV – The MACD indicator has turned bullish along with a bullish engulfing candlestick pattern; the stock is also trading at its support point, with that study, its short-term sentiment looks positive; therefore, the stocks are a buy.
QA-based POV – With the recent up move, the stock’s price to earnings (PE) touched the 3rd standard deviation. There is only a 1% chance for the PE to breach the 3rd standard deviation. Hence, it is prudent to expect a reversion to mean the stock is a sell.
Outside view – The analyst on TV recommends a buy on the stock; therefore, the stock is a buy.
The POV you take should always be based on your own analysis rather than an outsider’s view, as more often than not, one regrets taking action based on an outside view.
So after developing a POV, what does one generally do? Does the straightaway go and trade the point of view? Here is where the complexity of markets starts to kick in.
If the POV is bullish, you can choose to do one of the following:
- Buy the stock in the spot market.
- Buy the stock in the derivatives markets.
- Within derivatives, you can choose to buy the futures.
- Or choose to trade via the options market.
- Within the options market, there are call options and put options.
- You can combine call and put options to create a synthetic bullish trade.
So what you choose to do after developing a POV is a different ball game. Choosing the right instrument to trade that complements your POV is critical to profitable trading.
For example, if I’m extremely bullish on the stock from a 1-year perspective, I’m better off making a delivery trade. However, if I’m out rightly bullish on the stock from a short-term perspective (say one week), I’d rather choose a futures instrument to trade.
If I’m bullish with constraints attached (for example – I’m expecting the markets to bounce because of a great budget announcement, but I don’t want to risk much), it would be prudent to choose an option instrument.
So the message here is – the market participant should develop a point of view and complement the POV with the right trading instrument. A well-researched POV combined with the right instrument to trade is a perfect recipe for market success.
Also, by now, hopefully, you have got a sense of how all the different modules in “Varsity” play an important role in assimilating the market.
So keeping this in the background, go ahead and explore the content on Varsity at Zerodha.
The next two modules will explore concepts that will help us develop POV based on Technical and Fundamental Analysis.
After reading through these two modules, you will get a sense of developing a point of view on markets. In the later modules, we will discuss the different trading instruments you can choose to complement your perspective. As we progress, we will ramp up the flow to help you start calibrating your trades with effective risk management techniques.
Let’s roll!
loved it..learn a lot many new things..thanks 🙂
Most welcome 🙂
Sir I had some doubt regarding the purchase of stocks of a company. After listing a company in stock exchange they are actually selling their share to the public, right. If company xyz issues 10rupee 10000 shares to the public, and I bought a 1000 shares of that company at rupees 10000. After some time I wish to sell my share. Then I ll put an ask price for my shares. What will happen if nobody buys my share?
Well, this depends on the liquidity of the company. For a really large company like infy there is always someone buying and selling its shares…however there are some really small obscure companies in which trading does not happen…even if it does the volumes are low. So you need to make sure there is ample liquidity before you take positions.
Hi Hari,
In simple terms, like any traditional business that involves buying and selling trading is not any different. By liquidity we mean that the shares that you purchase should be easily sell-able. In other words if you purchase a stock that nobody wants then you will not be able to sell it.
Before you purchase any stock check the volume of the stock that is being traded. This is a great indicator that tells you that so many people are buying and selling. More the volume the better. More volume involves more trades and more buyers and sellers which improves your chance of selling your stocks
I have a question which bothers me. The volumes of shares like MRF and Eicher are always low then how do the price move so much in a day despite low volumes?
When volumes are it is actually easy to move the price, even a small buy-sell can influence the price.
If no body is interest in your ask price ..trade will not execute.
Yes, the trade would sit in your order book, waiting for a fill.
How can i get inside information ( such as cmpny goes to anounce xyz) 😁
Well, you should not really aspire for it 😉
Excellent material with quality content. Thanks Zerodha.
Thanks Gaurav 🙂
Thank you so much for the content sir.Thanks Zerodha. 🙂
Welcome 🙂
Thanks for an introduction marked by clarity, and simplicity of explanation. Was very useful in following the material.
Thanks for the encouragement, please stay tuned 🙂
This is like HC verma for stock market
awesome 🙂
Sir, we are mere mortals, cant afford to even be present in the vicinity of stalwarts like HC Verma!
WHO SUGGESTED SITE NAME AS “VARSITY@ZERODHA: IS A UNIQUE MAN/WOMAN. HATS OFF TO HIM/HER
EXCELLENT ARTICLES FOR THE BEGINNERS, BUT VERY SUITABLE FOR WHO IS NON-FINANCIAL GRADES WITH A KEEN INTEREST ON INVESTING IN TRADING AT FULL TIME WITH AIM OF HIS/HER SATISFACTORY RETURN LATER
🙂
I AM BEGINNER WITH UR SITE-WLD APPRECIATE IF U NOTIFY ME NEW CONTENTS /POSTS BY EMAIL
UR ARTICLES FOCUS ON TRADING OR INVSTMNT -I AM AN INVESTOR WITH S/T POSITIONAL TRADES
In fact most of the candlestick patterns explained is with a perspective of short term positional trades. Request you to kindly go through the same.
sir pls explain about top line and bottom-line growth. I can not understand about topline & bottom line growth.
I have discussed about the same in Fundamental Analysis – Request you to go through this chapter – http://zerodha.com/varsity/chapter/understanding-pl-statement-part1/
in “sort” type of investment 1st i have to sell and then i have to buy share but in how much time i have to buy??
In cash segment you can only short only on a intra day basis…which means you have to buy it back before the market closes.
Hi,
What is ‘sort type’ of investment ?
he actually means ‘short’ or shorting a trade
Sir, Excellent article. I would like to know and attend your class room course,if any.
Have a nice day……Regards
Thanks Ashok. We do not intent to conduct classes…all the content will be made available on Varsity itself.
Thank you sir for providing such a wonderful platform for learning.
The way you explain is so simple, interactive and easy to learn plus the pictures make it very interesting. – AWESOME!!
Stay tuned, we have more things coming up here!
Out of All Chapters in this module, I loved chapter 12 and chapter 13..hope to see this as next “Investopedia”..your examples are gud..keep innovating and improve the services…Great Initiative by Zerodha…
Would love to hear your feedback on why other chapters dint impress you 🙂 We could always improvise, adapt, and ensure you get the best 🙂
Hey! This modules are easy to understand. Thanks Zerodha.
I could see only till Chapter 10. Where are others?
There are about 14 chapters in this module – https://zerodha.com/varsity/module/introduction-to-stock-markets/ , can you try refreshing the page again?
Karthik ,i have fallen in love with you :=) .Love you as a teacher and your teaching methods .Please get the Futures and Options modules also up and ready quickly .Awaiting with a lot of curiosity on how high our learning curve will go up. Regards Sandeep
Sandeep, thanks ! Starting work on Futures trading t’row. Hope I wont disappoint you 🙂
wa wa !! dil khoosh hogyaa.. 😀 😀 sir you are great… am big fan of you again.. looking ahead for future trading module … 😛 😛
There is lots more to come on Varsity, please stay tuned 🙂 We are working on Futures Trading, the module will be posted by Jan 2015.
Very helpful, for the novice like us. Learned a lot, keep up the good work. Thank you.
Thank you, and I’m glad you liked Varsity. We are putting in our best efforts to ensure you get the best content, so please stay tuned 🙂
Excellent piece of work Karthik. You really nailed it. Love to see more …
Thanks Vijay, miles to go before Varsity shapes up into what we really want it to be 🙂
Good job sir ji
MAn Karthik who are you man ? .. Am bowled seeing these posts … U r awesome … I have searched for years to find things and you nailing them on one board .. Kudos to your effort … Am Jaga a Systems Analyst by profession. Would like to know about your profile is that’s ok..
Once again many many thanks for the beautiful piece of work you have put in …
Warm Regards
Lol 🙂 Thanks for the kind words. You are making me feel like a hero! Like many of my motivated colleagues, I’m too working towards making Zerodha the best financial services firm in the country, this is my bit towards that. Please stay tuned, we have planned a lot of good content for Varsity. All of which will be up over time.
Thanks a lot team. I had no knowledge about share and stocks before reading this. I thought just buy and sell. Now I have a different picture about the market. Will finish all the modules and start trading soon 🙂 Thanks again…..
Sure Balraj. Stay tuned, there is lots of good quality content lined up on Varsity.
Thanks a ton. Clear and concise introduction to Stock markets. My journey into value investing has truly begun.
Wishing you all the best Naveen 🙂
Thanks for educating us with such wonderful information
Thanks, glad you liked it 🙂
What is averaging?
Averaging is a term used when you buy shares in order to vary the cost of transaction. For example – Initially I buy 100 shares at Rs.20, cost of buying is Rs.2000. Next the price comes down to Rs.15, I buy another 100 shares this time the total cost of buying is Rs.1500/- and the overall cost is Rs.2000 + Rs.1500 = Rs.3500. Divide this by total 200 shares, the average cost of buying works out to 3500/200 = Rs.17.5. Therefore initially I bought at Rs.20, now I averaged it at Rs.17.5. This is called averaging.
SIR I LEARNED TO TRADE. I CAN ONLY INVEST RS 1LAKH. I PL.GUIDEWANT TO EARN FOR SHORT TERM DAILY BASIS
Try learning technical analysis for short term trading.
Dear Sir…
which one is the best option strategy…?
There is nothing like the best strategy that I’m aware of.
Awesome ! hats-off!! excellent initiative !!! happy to be a Zerodha customer.
Glad to know that, please stay tuned for more.
Suppose I dont have cash in my zerodha account, then I buy some shares with value X in the morning using leverage. The share price goes high in afternoon. And now the value is X+Y. And I sell them earning the profit of Y. Then how much interest I have to pay? If I sell them BTST then how much interest? I how much time span I should pay out leverage to zerodha?
You cant do this, as you need to have a cash balance before you can employ leverage.
Hello Karthik,
I am not able to understand how to buy shares if no balance in Zerodha account ?
And am also not able to understand your reply.
Can you please explain?
To buy shares for delivery you need to have 100% cash. For example if you want to buy 10 shares of 100 Rupees each, then you need to have 1000 in your account.
Good work team Zerodha.
Lot of learning on basics of a share market.
Thanks 🙂
Good content. Lucid writing. I wish, I had gotten it earlier. Looking forward to more.
Thanks, we are still working on developing the content…we are working on Options now. Please stay tuned for more.
Excellent Work ….Thank You Very Much
Thank you 🙂
Sir I had some doubt regarding the purchase of stocks of a company. After listing a company in stock exchange they are actually selling their share to the public, right. If company xyz issues 10rupee 10000 shares to the public, and I bought a 1000 shares of that company at rupees 10000. After some time I wish to sell my share. Then I ll put an ask price for my shares. What will happen if nobody buys my share?
Actually This question has already been answered before. Here is it:
Well, this depends on the liquidity of the company. For a really large company like infy there is always someone buying and selling its shares…however there are some really small obscure companies in which trading does not happen…even if it does the volumes are low. So you need to make sure there is ample liquidity before you take positions.
🙂
I cannot wait to read more about investment. 🙂
Good luck, we have put up the whole module in the Fundamental Analysis section. Please do check 🙂
Dear Sir, First of all, thank you very much for the wonderful efforts for training beginners like me. I have one question on the bid and offer part. If I want to purchase 3000 shares from the market and I raise a limit order. My price was 300 on the order. The quotes are showing 1 stock at 300 and another ones are 301,303,306,305 respectively. what does that mean? out of my 3000 requirement, I get only one share? or I have to raise a market order? kindly advise
In this case you will get only 1 stock @ 300 and the balance 2999 will be pending order. Remember this is a limit order, hence you will get a fill only when the price meets your specification.
Sir
Where I get proper information about Quantitative Analysis (QA) I am interested to learn it
This is a huge area, I would suggest you start with Willmot Forums.
i have a doubt 1. iam not getting my preferred equity or scrips in the trading platform a task bar above the trading platform i have seen
normal/nse or bse next be bl bt b2 d1 dr eq and h1 to h 9 etc kindly give breaf f details of thid abbrivation iam interested to get a training
if possibile arrang the meetting at kerala
B1, B2, H1 etc are all different series in the markets. For normal equity please select “EQ” series. Sometimes the scrip that you want if not in EQ will be available in B1 series. If the scrip is in B1, you cannot do intraday trade on it. To add stocks to your marketwatch, please use the drop down menu. If you are trading with Zerodha, then please do contact +91 80 40402020 for more details.
Unfortunately we do not conduct training sessions in a phyisical set up.
Sir, please explain what is de-listing and its impact on share holders?
De-listing happens when a listed company wants to pull off their shares from the public market. Usually when a company delists shareholders will get a better price. For example company ABC is trading at 100 on NSE, the company decides to delist, then the company is expected to delist at a premium …so maybe they can offer 130 or 140.
Sir,, if a company comes for public issue with floor price and price band of 500 -520, and if lead manager decides the issue price as 510,, then at what price it will be first listed in stock exchange?
Listing will be at 510….and based on the demand supply the stock can open much higher or lower on the listing day.
IF I already have shares in my holding and I take a short position (intraday) and then close it before the market closes by buying it, will my holdings remain intact or there will be First in First Out impact on it? I dont want my holdings date and cost to get affected by intraday trades. Please provide clarity. Thanks.
I’m assuming you are trading with Zerodha – so if you do intraday the order type is either NRML, MIS, or BO/CO….so this order type ensures that the trade is intraday and hence does now interfere with your holding. For you to square off from holdings the order type to use is CNC.
Hi Karthik,
I have a doubt on IPO section,
” The total of 50 lakh shares is called the Authorized shares of the company. These shares have to be allotted amongst the promoter and two angels plus the company has to retain some amount
of shares with itself to be issued in the future”
As per initial share holding pattern, promoters and angel investers control 25 lakhs shares,
My question is “who provided other 25 lakhs ruppes and who controls/owns 25 LKHS shares in company’s account” .Based on the seed funding by promoter( 20 LKHS) and angel investors (2* 2.5 LKHS), shares are allocated. How shares are allocated under company’s account ?
Thanks,
Anand
The balance sits in the company’s reserves (under the share holder’s liabilities section of Balance Sheet). Suggest you also have a look at this chapter – http://zerodha.com/varsity/chapter/understanding-balance-sheet-statement-part-1/
Hi Karthik
i mostly trade in options..i got your three points except the one called QUANTATIVE ANALYSIS,what is that about touched 3rd standard deviation..and were can i find that.Is it on every trading platform,when to expect bullishness with respect to standard deviation…please explain..and help me with this VWAP…thank you
That was just a pointer towards the ‘Quant’ based trading Ajit, basically to highlight the fact that there are traders who trade based on on ‘Quantitative Strategies’. This chapter here should give you a basic orientation – http://zerodha.com/varsity/chapter/volatility-normal-distribution/
ಶ್ರೀ ಕಾರ್ತೀಕ್ ರಂಗಪ್ಪ ರವರಿಗೆ ಧನ್ಯವಾದಗಳು ….ಷೆರ್ಸ್, ಸ್ಟಾಕ್ ಟ್ರೇಡಿಂಗ್ ಕಬ್ಬಿಣದ ಕಡಲೆ ಯಂದು ತಿಳಿದುಕೊಂಡಿರುವ ನಮ್ಮಂತವರಿಗೆ ನಿಮ್ಮ ಸಂಸ್ತೆ ದಾರಿದೀಪವಾಗಿದೇ …ನಾವು ಷೆರ್ಸ್ ನಲ್ಲಿ ನಮ್ಮ ಬಂಡವಾಳವನ್ನು ತೊಡಗಿಸಿ .. ಲಾಬದ ಅಸೆಇಂದ .ನಮ್ಮಿಂದ ಟ್ರೇಡ್ ಮಾಡಲು ಆಗುವುದಿಲ್ಲ ವೆಂದು …… ಬೇರೆ ಏಜೆಂಟ್ ರವರ ಮುಲಕ ಟ್ರೇಡ್ ಮಾಡಿಸಿ ಲಕ್ಷಾಂತರ ರುಪಾಹಿಗಳನ್ನು ತೊಡಗಿಸಿ ಎಲ್ಲವನ್ನು ಕಳೆದುಕೊಂಡಿದ್ದೇವೆ…… ಸದ್ಯ ಕೊನೆಗೂ ನಿಮಂಥ ಸಂಸ್ತೆ ನಮಗೆ ಸಿಕ್ಕಿದ್ದು ನಮ್ಮ ಪುಣ್ಯ ….ನಿಮ್ಮ ಇ ಪಟ್ಯ ದ ಸಲಹೆಗಳನ್ನು ಚಾಚು ತಪ್ಪದೆ ಪುನಃ ..ಪುನಃ ..ಓದಿ ಕರಗತ್ ಮಾಡಿಕೊಂಡು ನಿಮ್ಮ ಸಂಸ್ತೆಯಮುಲಕ ನಾವು ಮತ್ತು ನಮ್ಮ ಸ್ನೇಹಿತರು ಕಳೆದುಕೊಂಡಿರುವ ಬಂಡವಾಳವನ್ನು ಪಡೆದೆ ಪಡೆಯುತ್ತೇವೆ
ಧನ್ಯವಾದಗಳು
ಪ್ರಸನ್ನ ಕುಮಾರ್ ಚ ವೆ
Sir, read your message and felt really happy. Thank you so much for the kind words and the encouragement!
Sir fabulous article full of knowledge with complete explanation. If I do good in this market it will be all because of you and if I do bad it will be my fault.
Wow, those are strong words!…so allow me to rephrase it…if you do good in markets, its because of your hard work and if you don’t that means there is more to learn 🙂
Good luck.
You’re really cool
Brilliant stuff Karthik!
Thank you 🙂
I want to start trading, can you please guide me through.
I would like to know about opening de-mat account, particularly please tell if I can handle all procedures online?
Glad to know this 🙂
Please leave your contact details here – https://zerodha.com/open-account
Someone from our sales team will call you back within 30 mins and guide you through.
thankyou karthik ! is it possible to send e-mail instead of calling? I will be in town only by Monday.
Sure, please do email [email protected] and he will do the needful for you. Thanks.
can you please tell me what is this discount broking and how is it different from full broking?
Check this – http://www.chittorgarh.com/article/broking_industry_in_india/97/
check :- https://ipowala.com/sis-india-ipo-allotment-status-gmp-online-date-details/
Simple and amazing content, compatible and easy to understand for both rookie and an elite trader.
Cheers! I’m glad you liked it 🙂
in modules chapter 8 to 10 is not updated why?
Thats yet to be done 🙂
sir, i have studied some modules completely. they are very helpful for a person like me who hails from defence background. i want to suggest that this information can be more understandable and attractive if it is in the form of short videos.
Thanks Tarun. Videos take a lot of time to make, hence we decided to keep it in text form.
content is awesome.feeling confident to invest in stocks
Glad to know that Satish 🙂
Excellent material for new beginers. very smoothly explained. I bet even a first standard student will understand this :p
Thank you for the kind words 🙂
Hi Karthik. I have just applied for a demat and trading account with Zerodha. I went through your Module 1 and it has provided a quantum jump in my understanding about many Stock market related queries. Keep up the good work. I am eager to complete the other modules now.
Welcome to the family Sushant 🙂
Sir please may i inquire about when we can get currency, commodity section topics listed on varsity.
We started work on this, the first chapter is out – http://zerodha.com/varsity/chapter/currency-basics/
hello karthik ,
just a general query .
what are your views about a CFA qualification from US -CFA institute ?
does this add any value to our trading / investing performance ?
You need it if you plan to build a career in investment management…but not really required for personal trading and investing.
lets say a retail trader /investor after years of consistent returns wants to set up his own hedge fund or AMC ….can he attract outside money based on his returns or people still look upto paper-qualifications ?
for an avg . retail trader what is the best method to improve his/her trading performance ?
Well it really depends on how well you can communicate with clients. If your clients know you well, then qualifications does not matter, but to attract new clients, qualifications matter to some extent.
Also, I think SEBI needs qualification and relevant experience certificates before issuing the licence. Suggest you double check this.
What is the meaning of Hot and Cold with respect to stock market.
No idea sir!
Please tell me about nifty buying
You buy if you are bullish.
What is nifty buying ?
Buying the Index futures or its options 😉
Best Article I read this month. Will definitely share
Thanks!
Loved it,
thumbs up
Cheers!
sir,
i am a beginner and start investing with zerodha along with reading the phase-wise lessons of your varsity section. its really really nice job and being a knowledge-less person its very informative.
i have a suggestion to please recommend the stocks to your account holders for that you may charge minimum fee, if so that would be a great help to the investors who are investing in the stock market for long term perspective.
As a company we are against recommending stocks. Instead we like to educate our clients so that they can take informed decisions themselves!
Hi,
I read chapter 1 & 4 thoroughly. As I am planning for long term investment, I think fundamental analysis is enough. Do I require to read all chapters? Please suggest.
You just need Fundamental Analysis for long term investing, and nothing more!
Hi Zerodha Team,
One small request, if you launch trading practice demo account with live feed market data on existing platform (pi or kite), it’s very useful for novice trader and new upcoming person.
Thanks in advance.
In fact we do plan to have something like this. Will keep you posted. Thanks.
Hi Zerodha team,
One more small doubt for me. If the stock is de-listed from the exchange. Then, how can i trade the stock and why the stock de-listed from the exchange. How can i protect from this trap? How select the stock?
Thanks in advance.
If the stock is de listed then you cannot trade it. In fact, if a stock that you hold is about to get de listed, then it usually gets delisted at a very high premium to its current price, which is really good for the investors.
i was not able to understand these clearly before reading this..thank u very much if u write a book for beginners i am sure it will be best selling book for beginners
Thanks for the kind words 🙂
Market Guru,
Why not separate module on Quantitative analysis on varsity.
Have planned a module on Quants, maybe sometime next year 🙂
Hi Karthik, I have a question for you. I have not started trading yet and after completing the first chapter recently, I’m in the initial pages of Technical Analysis. All I know about Stock is from your first module. I know you’re coming for the stock portfolio session in IIM Bangalore, wanted to know if I could attend the session with the knowledge that I have.
Curious to know how you figured out about the IIM B event 🙂
I intend to focus on ‘Options Trading’ at the IIMB session and nothing related to TA.
The session requires registration, I got to know about it from FB, and saw your name there.
I don’t have an idea of ‘Options Trading’ at all, does that mean the session will be difficult for me to understand?
Ah no, the topic is changed to Portfolio creation and management.
Hi Karthik,
Apologies as my question is not related to this chapter.
Today 21 Oct 2016 – NBCC offer for sale for non retail investor(floor price 246 and 5% of on cutoff price) – I thought to apply but I saw its trading on 242 on open market.
1.What is OFS and what are its benefits?
2.In above case why some will buy through OFS or what is better?
3.How discount is provided? at the time of purchase or later?
3.Suggest some article on the same
Thanks!
I’ll try and put up a detailed chapter on OFS sometime soon.
Ok, Thank you.
But as per today’s scenario what should be the best option to buy through OFS or direct from Market. Please suggest.
Well, if the market gives you a price which is less than OFS then you are better off buying from the market directly than OFS.
In Chapter 6 you have mentioned: Day Trader – A day trader initiates and closes the position during the day. He does not carry forward his positions. He is risk averse and does not like taking overnight risk. For example – He would buy 100 shares of TCS at 2212 at 9:15AM and sell it at 2220 at 3:20 PM making a profit of Rs.800/- in this trade. A day trader usually trades 5 to 6 stocks per day.
and in Chapter 10 you have mentioned: All equity/stock settlements in India happen on a T+2 basis.
My question is: If i am a day trader then how can i buy and sell the same stock on the same day when all equity/stock settlements in India happen on a T+2 basis.
Well, when you trade intraday, you close all the positions by close. Therefore you are fair and square. However, if you want to purchase a stock for delivery, then you will have to buy…and the settlement happens on a T+2 basis. By settlement i mean, the act of the stock hitting your DEMAT account.
Requesting you to please explain with an example .
You buy TCS at 9:30 AM and sell it anytime before 3:20 PM (using product code MIS, Bo Or CO) then its considered an intraday trade. However, if you buy TCS with CNC as your product type, then you are essentially buying the stock to hold for few days. Settlement in such case happens on a T+2 basis.
Sir, which all modules should i complete before actually starting to trade. I want to be a swing trader and would like to go long and short sell as well for more than a day…
I guess you messaged on Linkedin as well….as I mentioned, it makes sense to learn TA, it helps you develop a point of view. Maybe you could gradually move to quantitative technique.
Great content, explained in layman’s terms,
thankful to it
will recommend it to anyone who wants to learn the technicalities of stock market.
Happy to know you liked the content here, thank you so much!
Excellent Material, just apt for someone to begin…
Thanks, good to know that 🙂
sir, I want to start investing in stock market but there is a little fear. I have studied a lot and had also done a course of technical analysis.But whenever I start playing any virtual game of stock market I just end up that I know nothing. what should i do???????
Have confidence in what you’ve learnt and place a trade.
Dear sir,
Can we place short sell order through CNC if we know that the trend in the particular stock is bearish and the trend will continue for few trading days…?
Thank you ..
You should be using MIS here.
Can you explain multiple day short position?
I thought both BSE/NSE does not allow such shorting and carrying position to multiple days. it is settled on the same day.
If i do not own the stocks how can i sell them, unless i buy it at the end of the day to square of the position?
Yes, you can only short spot on an intraday basis. To carry positions overnight, you need to look at futures market.
Hi Karthik,
i recently opened an account with zerodha , i have a quiery ,when i tried to place an order there is an option like VALIDITY: DAY OR IOC what is the meaning of this?
2nd doubt if i enter a scrip name in wishlist like reliance it is showing RELIANCE-BE, RELIANCE-BL what does that mean.
Thanks&Regards
A day order is valid until it gets executed or till the end of day (market close). For example, if your order is to buy Reliance at 985, then the order stays in the system till Reliance hits 985. Immediate or Cancel (IOC) on the other hand checks for the price, if it is 985, the order gets executed, else gets cancelled.
BE, BL, EQ etc are all different market segments. You can know more about it here – https://www.nseindia.com/products/content/equities/equities/mrkt_segment.htm
If you are just starting, I’d suggest you stick to EQ.
Thank you so much. I am going to read all the other modules as well. Nd i would return the favour by opening an account with Zerodha.
We will be happy to have you as a client, Karan 🙂
Good luck & happy learning.
Just wanted to confirm that, isn’t it that all the 5 other charges other than Brokerage will be same irrespective of the broker you choose ?
Yes, they are common across all brokers.
Thanks Zerodha great material easy to understand , i am planning to invest real soon . Right now i am gathering all the knowledge that i could before going live . Thanks again Zerodha it would be very difficult without to understand the concepts so easily.
Happy to know that Gagan 🙂
Good luck and happy learning!
1>is stock operaters exist in indian stock market.
2>how to identified stock in which stock operaters exist.
3>how to analys operater intention that he want to move stock up or down.
1) Yes, they do and their activities is illegal
2) They usually prefer operating in ill-liquid stocks
3) To some extent, the charts would help.
That was an excellent effort to provide basics for Novice Investors
Thanks!
Thanks for the all the information. Great medium for beginners.
Can u share some information regarding how different is your company from Futures First. I know they trade their own money, they do not trade public money and also they do not trade in stocks.
FF is a trading company, they trade their own money. We are stock brokers – we give you the access and infrastructure to trade the markets. Along with this, we give a host of other services, including Zerodha Varsity.
How is your work different from investment bankers (managers)?Also can u suggest how or what other skills are required to make a transaction from trader to investment banker?
IB’s offer a whole host of services to corporate like – Mergers, joint ventures, acquisitions, merchant banking, stock broking, structured products etc. We offer just stock broking (at least for now).
Thank you for creating this ! Its fabulous. Most importantly, the content is relevant, easy to follow and hopefully retained. I am a doctor and have always hated finances due to its jargons and complexity. Usually, I start studying these things and loose interest very quickly, given the dry subject and difficulty understanding.
I spent entire day reading the first module and I am feeling enlightened. In fact, I am so looking forward to the next modules !
Keep up the great work !
Best,
Prashant
Thanks for the kind words, Prashant. Constant encouragement like this motivates us to do better and better 🙂
My question is not related to this chapter but still please if u could help with this.
What should be done if i have brought shares of some company and companies losses are rising every quarter and revenues falling every quarter and in near future also company is not giving much hope.(Like happening for IDEA now).What should be done to minimize the losses??
Sell the stock, book a loss, and look for other investing opportunities.
loved the content hope the rest of the modules are like this, if this is trading then i love it. even being an engineer i m thinking to start trading
😛
Its pretty much the same, Sumit! Good luck and happy reading 🙂
Love this module.Such a great place to start with for beginners like me:)
Happy reading 🙂
Wow!! I have never understood stock markets before. Your explanation is so clear for beginners like me. Thanks a lot, Karthik and Zerodha team.
Happy to know that, Mrinalini 🙂 Happy reading!
Amazing content…!!! Request to add a chapter on Mutual Fund/SIP..!!
It is in the list of modules, will do that. Thanks.
I am a client of zerodha, I want buy IPO, How can I.
Request you to follow the thread here – https://tradingqna.com/t/how-to-buy-d-mart-ipo/10597
If i use cover order for equity (intra-trading) and use leverage because of insufficient funds, will there be any interest ?
Nope.
and also it is showing on my dashboard that 2.41k margin available, what does that mean and will any interest will be charged?
That is the margin available for you to trade. No interest will be charged.
and do i owe anything to zerodha
No.
I just finished reading Module 1.
Amazing content, so beautifully written and explained. The way you explained why cos. go public via story telling – wonderful
In one of the above comments you said you will be adding content on Mutual Funds and SIPs – really looking forward to that.
Thankyou Karthik and Zerodha team. Kudos to you’ll
Thanks for the kind words, Jinal. A module on personal finance is long overdue. Will do something about it soon.
I can’t thank you guys enough for such easy to understand content, will study some more and open a Zerodha account soon 🙂
We will be happy to welcome you to the Zerodha family!
Happy learning 🙂
As per my understanding I can invest in a particular company under stock market. But how to invest in nifty as its an index comprised of several companies?
You can buy the Niftybees, which is basically an ETF based on Nifty as the underlying.
Karthik sirrr, you are doing a great job……..Really thank you sir.
Thanks, Bhanu.
I did not know ABCD of stocks , now I atleast know the letters of stock market . Thank you Karthik sir ….. I think I will be able to create words after going through the remaining modules. Thanks once again 🙂
Happy to head this, Vijay. Good luck and happy learning.
Excellent content. I know most of things but still some new concepts are cleared. Thank you zerodha.
Cheers!
Sir , if we hold a scrip- infy and we want to do BTST in the same script ,how can we do it since FIFO we sell the shares from demat ,and will FIFO also apply if we do intraday trade in same script (infy).
Excellent Work Karthik !! Much Appreciated !! Request you to advice regarding quantitative analysis. If i wish to trade as a swing trader, would the volatility distribution explained in “Options” module be sufficient for me to get a POV (as far as QA is considered, in addition to POV from TA and FA ). If not, request to add that module. Also i understand, getting a POV by making use of your technical analysis module, i may trade at 3:20pm (same day)or 9:15am(next day) by considering 3-6 months candles. But what do you recommend be the number of historical candles if i wish to trade during the day. And is the pivot provided by zerodha kite,obtained on the same lines as that explained in the “Support and Resistance” chapter of TA module. Lastly does zerodha provide quantitative charts(Volatility distribution chart as explained in Options Module) in any of the platforms, if not do you suggest any forums or platforms for obtaining the same. Alternatively i can also use the spreadsheet provided in the “Volume Distribution” module, but request you to suggest the history data for the stock i need to consider if i wish to be a swing trader.
Thanks Kiran.
1) Yes, it certainly does.
2) It really depends on your outlook. For example, I mostly look at EOD charts for intrday for at least 3 months. Some people only look at last 3 days data…and some look st last 15 mins data. So there is no right or wrong answer here.
3) Pivot works on a preset calculator, this is different from what we have discussed in S&R chpater
4) No, not as of now
5) Will try and do that
Request to suggest a good website for economic market calendar, where i can read about key events of the market.
Have you checked trading economics site?
Thanks Very Much Karthik !!
1. Trading Economics Site has lot of useful information. Request to let us know if impact of Key Events Globally on Indian Stock Market.
2. Also wanted to know if there is a site where i can find time of declaration of corporate earnings as in trading economics, as most of the websites i have found only have dates but do not mention time. And at trading economics, i was unable to find Indian corporate.
3. And lastly, as Indian Citizens are we allowed to trade in global markets such as US. Is there a similar concept as FDI for US markets. Also would like to know your opinion for trading in US markets. My reason for trading in US market would be to take advantage of dollar conversion rate, ie if i manage to make profits in dollars, i can be at an advantage as i would still be spending in INR only.
1) Yes, it is a very resourceful site.
2) Moneycontrol has it I guess, please do check the site
3) Yes, you can. But RBI has a restriction on how much you can invest. Guess its 25K USD.
Hello Karthik,
I just finished Module 1 and I must say that this is my best investment (time) and how I wish there is a formula to calculate my ROI (Knowledge) in quantitative terms. I am going to keep on investing on the other modules. I just want to say Thank you very much for teaching us. You are awesome ! 🙂
Hey Jeevan, I’m so glad to hear this 🙂
The best investment in market is your investment in learning. This is the only investment where returns are guaranteed :). The more you invest, the more returns you earn.
Good luck and happy learning!
Dear Sir,
I would like to pay my sincere thanks to zerodha and specially, many many thanks to Karthik Ji as I learnt a lots from Module 1 which could be possible by your noble efforts.
Again thanks.
Good luck, Sunil. Happy learning.
Very good content for beginners , simple and right choice of words, learned lot of things ,and cleared many doubts, thanks.
Happy to note that 🙂
Good luck and happy trading!
Sir …I have shilpi cable stock ..From last 5 to 6 days stocks continusoly hitting to lower circuit …There is no buyer in this case how to sell stocks …How to place order …In such cases …So that I will able to sell stock
You will have to just place the order everyday with a hope it will get executed. No other way out here.
hi kartheek ji small doubt ( good or bad i dont know) placing. here is the question
futures contract for wipro now (24/06) future price 258
lot 2400 expiry on 29/2016. for the same buy margin 205488
sell margin 76968 why that much difference (128520)??
2) i observed some times futures price is trading at lower than spot.
i learned futures mimics spot. futures acts according to underlying asset
please clarify me sir
1) Futures margin is the same for both buy and sell, they cant differ. Are you sure you are looking at the right contract/right number of lots etc? Please do recheck once.
2) Yes, there are at times when futures trades below spot (referred to as discount) and at times, futures trades above spot (referred to as premium). This happens due to the natural demand and supply situation in the market. However, the overall price movement in Futures is based on the spot prices.
hi sir . nifty17jul 10600 ce @prem. 0.10 trying to buy 7500 (100lot) in nrml
is rejected with message , rms: margin exceed.required 9375.
how the fig 9375 came?? 0.10×7500=750 only please clarify me
in our calculator also its showing 750 only plese
what is day and ioc in validity sir while placing order
It should be 750, I’m guessing you had some other open order or something. Can you please check with our Support executives once?
Day order is valid for the entire day but IOC is immediate or cancel. For IOC to go through, both price and quantity should match with what is available in markets.
Do you guys have any learning material about mutual funds? I invested Rs.5,00,000 in a liquid fund (Peerless) through Zerodha in October and when I checked a couple of days back the current value is below the original amount. In other words, I lost around Rs.2000 in 8 months. I thought liquid funds were safe enough. Can you explain what may have happened? Thanks.
We do not have anything on MF yet, however, we will create a module on MFs soon. Ideally, you should not have lost that money. Is this the fund you’ve invested in? – https://coin.zerodha.com/funds/14057832.00206600/peerless-liquid-fund-direct-plan
It was Peerless Liquid Fund – Dividend-Monthly https://coin.zerodha.com/funds/14055555.002182. The NAV when I invested in Oct 2016 was 1005.9436 while the NAV when redeeming in July 2017 was 1003.3102. The units remained the same. It was a monthly dividend, but I don’t know what happened to the dividends. Agree, ideally, I shouldn’t have lost money (even though it may have not appreciated much) given that it was a liquid MF, but not sure what happened here. I had invested 7L in Taurus liquid MF through another broker and there too I lost close to 22K. 🙁
Let me check this and get back as soon as I can.
Karthik, do you have any update on this?
Great content….Thanks.
Cheers!
can someone explain me about picking a stock for fundamental analysis from around 6000 companies available to invest
You may want to start from here – https://zerodha.com/varsity/module/fundamental-analysis/
The entire guide is really productive for a beginner like me. Truly remarkable guide to start with.
Happy learning, Rohan!
Brilliant tutorial! THis guy must be a maths teacher!
No, I was quite bad at math 🙂
just finished the first module..all the chapters are excellent but personally I loved the one on IPO and pre-IPO funding and that other one on short selling that use the example of flipkart mi sale 🙂
Happy to note that 🙂
Hope you enjoy the other modules as well 🙂
If any company issue Bonus share 2:1, then its prices will be half.
Then don’t it will affect the Nifty of Sensex if its in Nifty-50 or Sensex-30…..as they calculated by averages of them…!!!!
If the company is listed on the index, then it does have an effect. The effect of this will be taken care by the index management company.
Thnx…!!! Can you elaborate…if possible..!!!
The Index management company will adjust for splits and bonus such that the index does not show up erroneous values.
Easiest way of learning stock market.. thank you (y)
Cheers! Happy learning!
I like to trade on Forex on some international stock exchange for that I have to write some exam to get permission from rbi or not
No, as per RBI, you cannot trade leveraged products overseas.
The main reason of the company going public is to raise funds for its expansion. if an early investor wants to exit, which one would be considered as priority? will the company and the investor will sell there shares separately to the public?
Could be for any reason –
1) Money for expansion
2) Exit for investors
3) Pay off debt
They will all have to transact via the stock markets.
Dear Sir/madam,
How can we check the shares holding period?
If you are trading with Zerodha, I’d suggest you check the Q backoffice > portfolio > holdings. Under the stock names in holdings, click on ‘+’ icon and you will get the number of days you have been holding on to the shares.
Tumba thanks dear,
Just want to know as a bigenner which type of trading or investing one shud be doing.
I have no idea about trading but have inclination towards shares.
If you are an absolute beginner, I’d suggest you start with investing.
i loved your site, because all informations are here, i learned like a class room. thanks
Happy to know that, Rajesh!
Hell Sir,
Yesterday I purchase 1000 shares of SBI @ RS 300 [say] at Intraday Trading Zerodha Platform, after some moment it hit a Stop Loss and I lost Rs 2000/- on the trade.
In this case how much would be debited from my Zeroda Equity Balance.
I think RS 4000/ was debitted from my account.
Kindly explain such scenario , I am new to trading….
Thank you
Debit will be to the extent of your loss plus applicable charges. You can get an estimate of this by using our brokerage calculator – https://zerodha.com/brokerage-calculator
Hi,
If i convert my position of XYZ from MIS to CNC before the squaring off , will margin available on my stocks till T+2 ? or do i need to add money at end of T day?
You need to have the required amount of money at the time of conversion.
Good job Team Zerodha
Cheers!
i have a demat & trading account with edelweiss can i convert it in zerodha & close my all other demat & trading account …..please provide me this facility….& explain the charges for this activity…
You need to open a new account with Zerodha, I’d suggest you use the onscreen instructions here to open your account – https://zerodha.com/?ref=varsity. Good luck.
Hi,
can shares from one demat account be transfered to another demat account.
Yes, you can.
Three weeks ago, I started thinking about investment. I started out with knowing about mutual funds and then two weeks ago I started to look for trading and how to do it. And then, a week ago I found this. This is the most awesome content that I have ever read on the internet. It’s really helpful and everything is in place for the beginners to start with.
Happy to note that, Saikumar! Good luck and happy reading 🙂
Too good. Thanks for providing the required information in a contained format.
Happy learning 🙂
One of the most simple and interesting materials. Thanks 🙂
Glad you like it, happy learning 🙂
I want to know after an IPO how does the company benefit from trading of it shares
There is no direct benefit for the company from the daily trading that happens on the exchange.
Then what is in-direct benefit for the company ?
The benefits are reaped when the raise funds via IPO. Of course, the network of the promoters is also dependent on the share price.
Does Zerodha offer a practice demo account to practice day trading?
No, Alex. Unfortunately no demo account.
I have no words to describe the beauty of your articles. This is very very helpful to guy like me (I.T professionalist) who have a great zeal to invest in market but always fear of “share market is gamble and always loss” but i always believe to first go to deeply to understand then will be able to judge whether this is really a gamble or mind game..
I was looking for an online material to get basics and market running fundamental knowledge and by luck found this website.
Again Thank you so so much for such a fantastic,knowledgeable,well explained & complex contents 🙂
Cheers !!!
Welcome to Zerodha Varsity 🙂
Thanks for the kind words, Saurabh. Words like these motivate us to put up better content.
Good luck and happy learning.
I have following queries with respect to share market .
can you please help me to understand this.
1) Does company growth totally dependents on share market value.
For example : An I.T company share market prices are getting down by 50% (from 500 per share to 250 per share) but company running with all existing clients so does this prices down will start layoff in company or what does impact of low share prices for any individual company.
2) Personally , i want to retain share for longer period then want to sell it out so is there any different category for this .As i knew that in intra-day share will be buy/sell on the same day.
3) what is an ideal way to open trade/demat account . With broker or direct with bank.
For example : should i go with sharekhan/zerodha or icici direct . which to select and why?
1) No, the growth depends on the core operations of the business. The share price is a reflection of the growth in operations. If operations and business grows, so will its share price
2) Yes, you can invest for long term. I personally know people who continue to hold Infy shares from the time of its IPO
3) You can choose to open it with a broker like us :). We are India’s leading stock broker. If you have an AADHAAR number, then you can even open the account online within few minutes, click here – https://zerodha.com/?ref=varsity
Thank you very much Karthik . i read the entire Module 1 that is all 13 chapters in one go . The language used is very simple and you have explained the most complicated things in the most simplest and interesting way.
Thanks Again .God Bless You.
Thanks for the kind words, Anand.
Happy learning!
What if broker like Zerodha closed overnight….!!!!!
I mean what would happen to my funds in zerodha a/c and shares owned by me…!!!!
Check this – https://tradingqna.com/t/how-safe-is-it-to-trade-with-zerodha/533
Yes no doubt on zerodha…!!!
But what about if any other broker like zerodha closed suddenly….!!!
what are govt rules regarding that…!!!! just curiosity….!!!!
Check this – https://tradingqna.com/t/how-safe-is-it-to-trade-with-zerodha/533
Hi karthik,
The charting indicators option is not showing in the kite web browser in my mobile phone after formating it at service centre. Can you please guide.
Thanks & Regards
Well, can you try reinstalling your browser?
dear karthik,
The material is very useful for beginners . Nice effort
Thanks! Happy learning.
Enjoyed reading! Many concepts cleared in a very simple way!! Thanks for sharing.
Can i sell the share on next day or same day (if i select CNC type)? Because in module i learn that we recieve share on t+2 day then how i sell my share before i get it.
Shares are settled on T+2 Basis, Bhavik. However, you can sell it the very next day, but there is a risk of auction. Check this – https://zerodha.com/z-connect/queries/stock-and-fo-queries/btstatst-buyacquire-today-sell-tomorrow
would like to know how one can use margin trading. I am currently using kite. Is it possible there.
Also are there any demo videos on the various features on buy & sell, charting, backoffice etc available on zerodha
Check this – https://www.youtube.com/watch?v=1Jy23XfKwG8&list=PLkxTRam6E2V-okv6gwQlt6dLTsn0v6CD1
How can I put stop loss in option trading.
Example: I bought a LOT of JET AIRWAYS 600CE Sep @ 15. And now it is trading @17. So now I want to sell it @18 if it touches 18 but also don’t want to sell less than 16.50 if it goes down. Please advise.
You will have to place a SL at 16.5 and track the position to sell at 18. This is the only way to do this, Veer.
Hi, I am new to stock markets and your materials providing me great knowledge from basic. I have query on short position, in which first i sell some stock and then i need to buy it to close the existing position. Is there any timeline to complete it and what if i don’t complete it.
Yes, if you are shorting in the spot market then you will have to close the position within 3:20 PM on the same day. However, if you are shorting in Futures, then you can carry forward the position overnight.
Hii sir I am karthik from hyderabad ‘ I have opened a demat account in zerodha
But I do not know how to trade in options and how to select a stock
Please help me sir ‘ how to learn and invest in option market
Welcome to Varsity, Karthik 🙂
I’d suggest you take a look at the Options module – https://zerodha.com/varsity/module/option-theory/
Thanks a lot sir
Happy learning!
1) how can an indian trade in international market say US from india?
2) Who should be the broker in that case?
3) does an indian brokerage firm allow to trade in say US market?
4) I have listened some people trade in gold in the international market, how do they do that?
1) You will have to find a broker who allows you to trade US stocks. RBI has a restriction of upto $250,000 of investments per year. No leveraged trades allowed
2) & 3) Yes, some allow not sure of the names for now
4) Same as above.
Dear Karthik anna,,,
Are you from the same planet where we also belong too??!! you amused me with your knowledge . “Knowledge is power” obviously not,,but using that knowledge for well being of all is the real power,,,i have specific goals in my life , one more goal added to my list, that is meeting you in future . I will make you proud by becoming key player in Indian stock market
Thanks a ton !!!!!
Knowledge grows when you share it with people 🙂
I wish your dream comes true and you indeed become a key player in the markets!
Good luck and stay focused 🙂
Hi Team, Could someone suggest on how to buy and retain shares for more than a day? whenever i start to buy the validity says one day and i will not be allowed to carry forward. please let me know how to do this
THanks
Anoop
You should use the product code as CNC. CNC means cash and carry and is used when you want to buy shares for multiple days/weeks/months etc.
Hi sir,
Your lectures are awesome. I have a question for you. what if I bought a stock in cnc and sold it on the same day.Can I do CNC for intraday trading?
What is difference between ioc and day options which zerodha shows in advanced menu
Thanks
Mohammed
Yes, you can do that and this would be considered as an intraday trade. IOC is immediate or cancel, you can use this to place orders when you are particular about the time of execution. The day order is valid for the day.
Sir,
My order got rejected and it say Rule:check holdings, no holdings present for entity account-ZP8084across exchange across segment across product.
It was showing stocks in my positions. but i was not allowed to sell, order was getting cancelled with the above message. This happened for half an hour. After that I could sell them. Why is that happened?
Can you check this Tradingqna post?
It has the various reasons for which you could see that order rejection message
Sir,
how are the payment gateway charges for zerodha?
How are DP charges applied? is it 13.5 per stock of same company? or 13.5 even for 100 stocks of same company?
The payment gateway charges is Rs.10.63/- including 18% GST. DP charges are applicable when you sell shares from your holding. This is on a per script basis, does not matter how much you sell.
Hi Karthik,
I have a questions . I have a 9-5 job . Is there a paid sms/whatsapp service that will send market alerts before moneycontrol, etc. My idea is to trade the news flow for a few minutes.Please advise.
Not sure about this, I’ve never tried such services, Sashi.
Hi Karthik,
Thanks for such a quality information about stock market explained in simple way.
Really helpful for a beginner like me who lite
Good luck and happy learning!
Hi Karthik,
Thanks for such a quality information about stock market explained in simple way.
Really helpful for a beginner like me who literally didn’t have a knowledge about the stock market before opening account with Zerodha.
Keep it up..
Glad you liked the content 🙂
By the way, welcome to the Zerodha family!
hello sir,
thank you for the awesome training you have given… Sir i need a clarification regarding the market depth.. As I am new to stock market trading, I am getting horribly confused with the terms bids and offer …kindly help me out..thank you again…
Where are you getting stuck, Prasad?
thank you so much…I got it cleared from my friend…thanks again ☺
Good luck!
Take a bow Kartik n team for fabulous work, it’s like better than reading so many other books on markets and your lucid language and example made it all so much clearer, kudos
Glad to note that, Sachin 🙂
Happy learning!
Take a bow Zerodha team for fabulous work, it’s like better than reading so many other books on markets and your lucid language and example made it all so much clearer, kudos
Thanks for the kind words, Sachin 🙂
I just loved reading varsity. Though i have still one question in mind regarding IPO. Can a company get listed in secondary market instead of going through the process of IPO?
Yes….. a through reverse merger a private company can do so by acquiring any listed entity.
https://en.wikipedia.org/wiki/Reverse_takeover
Glad to know that, Abhi. For a company to get listed, it has to go through the IPO process.
What is face value of a stock? What’s the difference between this and stock price?
Face value is the nominal value of the share at the time of creation of the share. The stock price is the price determined by the market participants.
So, for a stock to be considered as performing well, it’s current stock price to be greater than face value , right?
No – this is not true. The only indicator for the performance of the stock is the % return the stock generates!
Sir you have said that scalping is essentially buying and selling of stocks in large quantities, for a small price difference. Now, what is large quantity? Would a number like 25000 qty of a particular stock be enough for scalping?
This again depends on the stock price. If the price says 10, then 25K is not much. So instead of thinking in terms of quantity, it makes sense to think in terms of the value of transaction.
I am speechless, I can’t believe such a wonderful information with great illustrations are provided free of cost.. I will be indebted to you always Sir… You are great Man
Thanks for the kind words, Kamil. Happy learning!
how many modules are covered in zerodha varsity? why cant i see the 11th module ‘financial modelling for investment practice’ as mentioned above?
So far there are 9 complete modules and the 10th one on Trading Systems is ongoing. Maybe after this will start a module on FM.
ok. thanks!
Cheers!
thank you so much sir….
you are the main reason for making share market easy for thosands of people and letting them to make indian economy better
Hahah, thats not true 🙂
Happy learning, Shiv 🙂
learn much and you make easy to understand basics. I will start read module 2 soon. Thanks a lot for sharing such a good content.
Glad to note that, Heer. Happy learning!
I have question, I wonder in a falling market like the one we saw in 2008 and 2013 where market was on a freeflow, how a person can sell a particular stock? I mean there should be a buyer right? Why do anybody wants to buy in a free flow market?
Indeed I was about to ask the same question. Thanks for asking
There were buyers, Pramod. They call themselves the value investors 🙂
Sir you’ve written about how to develop a POV using fundamental and technical analysis. But you never got around to quantitative analysis. If it’s not on cards anytime soon, can you suggest some books on the topic?
In fact, the current ongoing module on Trading systems – https://zerodha.com/varsity/module/trading-systems/ , revolves around quants/stats. Do take a look. Thanks.
What are the different basis for trading? I know trading based on Fundamental, Technical and Quantitative approach. What others forms of trading is there?
Sir to be clear, I’m asking about the basis on which trades can be taken, like based on market profile or technical Analysis.. And not the time frames. It’d be greatly helpful if you can guide me on this. BTW, enjoying varsity very much.. Have recommended it to all my friends and colleagues as well. Thanks in advance.
Thanks for spreading the word about Varsity, Sundeep.
Selecting the time frame is secondary. If you opt for TA, then something like candlesticks will help. For investing, nothing beats Fundamentals…and for short-term trading, you can consider something like pair trading (based on stats/quants).
These are the three main categories, Sundeep.
Sir what are some lesser known methods/basis for placing a trade apart from those three? That’s what I wanted to know. Thanks for the amazing write ups sir.
Every other technique is a derivative of these three broader techniques. Of course, you can always rely on your gut. This is outside the purview of the TA, FA, and QA. A lot of traders use this occasionally, including me 🙂
Sir I have few more doubts. How would you classify placing trades based on market behavior? Like volatility is high on stocks surrounding news. So short the same. What kind of trade is that?
Since its a bet on Vol, I’d peg it to QA. In fact, you can use ATR indicator to get a sense of Vol, that would be TA.
Excellent Article. Was able to learn many new things.
Need to learn about the derivative markets in the coming chapters and developing PoV.
Glad to know that, Sajeev.
Happy learning!
QA based POV – With the recent up move, the stock’s price to earnings (PE) touched the 3rd standard deviation. There is only 1% chance for the PE to breach the 3rd standard deviation. Hence it is prudent to expect a reversion to mean; therefore the stock is a sell.
can you please elaborate the above? It’s a tad bit confusing.
You will have to spend sometime on normal distribution for this, have explained the same in options module. Request you to read through it. Thanks.
Even I got the same doubt and confusion….
Like I mentioned, a lot of it will make sense as you progress through the modules.
Dear sir,
Can you please elaborate differences between last trading price LTP and close price of equity stock?
Check this – https://tradingqna.com/t/how-to-determine-closing-price-in-f-o/584
Happy to know about new thing and in the best simple way,these things are happening in front of us on daily basis and we have to know behind the scene.
Good platform.
Good luck, Amnendra!
Nice explanations. Thanks
Happy learning!
Hi!! Thank you.Must say an excellent article for beginners. So Karthik I don’t understand the last part of this module.
1)What is an MACD indicator?
2)What is PE ratio? And third standard derivation?
The terms are explained in their respective modules (MACD in Technical Analysis and PE in Fundamental Analysis, and Standard Dev in options and trading systems). I used these terms here to give a sense of what to expect.
is it necessary to buy the stock the same day you shorted? if yes,why so?
Yes, otherwise you will have to give delivery of shares. Hence to avoid this, you close the position the same day.
Hi Karthik,
Thanks for explaining the contents in a easy to understandable way.
I have a query. There are approx 5500 stocks in the market. At the starting point, how to pick up a winning stock/how to select stock for analysis? Could you please provide some guidance on this.
Arundathy, I’d suggest you stick to the Nifty 50 stocks, at least when you are getting started.
Sir where is this quantitative concepts.I couldn’t find it.will it come after trading systems.BTW you explain any thing in such a plain practical way and so effortlessly that after reading it feel like WOW.
Check this – https://zerodha.com/varsity/module/trading-systems/. It is all about quants and stats.
A little off topic question
what education or degree course would you advice which will help someone who wants to do stock trading for a living (only for own business ,not considering and requiring any job ) .
That will be difficult to answer, Omi 🙂
I don’t think there are any courses designed to do that. You just need to read a lot of content and develop a path ahead for yourself.
thank you
whats your view on cfa course.will it be helpful?
Yes, certainly, more so if you are looking at a career in Asset Management.
Excellent article sir. Hats off to you sir… Karthik (Y)
Happy learning, Prakash 🙂
I have read somewhere that sebi has investor protection fund for investors or traders for default with maximum compensation of 25 lakh. So in case say xyz broker defaults or hypothetically say runs away with clients money so will the trader or investor would get compensation from this fund put by sebi
Everything you need to know about it is here – https://investor.sebi.gov.in/ipef.html
Great post.
I have doubt, Can any retail investor like me be able to buy shares of MRF or Eicher at the lower levels?
Meaning, will these share price comes down? either by way split or bonus or will it fall to its lowest level?
Well, I wont be able to answer that for you 🙂
which countries stock market affects nifty
Dow and Hang Seng, certainly has an influence.
Awesome!!
You have explained it in a very simple manner. It’s very easy to understand for a beginer.
Happy learning, Naveen!
one small doubt what is the crriteria of being called as retail trader in indian contest.
i mean is it the trading account capital from which someone trades or else.
There is no formal definition for this. Generally, if you are an individual trading the markets, you are considered as a retail participant.
Hey Karthik,
When is the 11th module gonna come?
Will take sometime, Ram.
Awesome content !! The way it is explained is simple and clear.
Glad you liked the content, Dinesh. Happy reading!
Apart feom zerodha’s fabulous content the comment section is also interesting after reading 413 comments your 413 doubts are cleared. cheers!!
True, the comments section has become a treasure trove 🙂
Happy reading 🙂
If you think the stock is going up, your POV is bullish hence you would be a buyer of the stock. Likewise if you think a stock is going down your POV is bearish therefore you would be a seller of the stock.
I dont understand this, when rate is high then it buy
And rate is low then sale
Sale of low rate & purchase of high rate, then how profit gain
The thing is, you buy when you expect the price to go higher. Likewise, you sell when you expect the price to go lower.
But when the price to go low than pur price then how get benefit
e.g. pur price 100 sales price 90 then benefit??
Then that would be a loss.
Superb article
Great work guys ! Really helpful 🙂
Keep going, Arvind!
Much more than what I learnt at MBA! Thanks for the humongous effort this must’ve taken. Much appreciated. Have also ordered the ‘Finance made easy for kids’ as a birthday present since my younger one certainly has a ‘trading mentality’ 🙂
Glad to note that, Lalita!
Good luck and I hope your little one makes us all proud 🙂
This is truly fantastic. Really appreciate the efforts you have taken to explain all the required concepts. You just made stock market interesting for a total newbie like me! Hope to dig in further, especially curious to learn about derivatives. Can you suggest a good read on it, or is it already included in one of Varsity’s sections?
Glad to hear that Saurab! Varsity’s section on F&O is a good start, it gives you a good understanding of the basic concepts. There are plenty of books which you can read later on. Really depends on your area of interest.
dear sir,
actually i have query regarding intra day trading ……..
1) sir can we trade any security or stocks in intraday without using MARGINE provided by zerodha.
2) can i buy any stocks in CNC and i want to exit my position same day is this possible.
(i want to tarde as intraday without using margine)
if possible is there penalty levid on me or not
1) Yes, you can do a CNC order types, pay full cash and trade
2) Yes, possible. No penalty for doing so. However, since its an intraday trade, you will be charged intraday brokerage.
Hey, in this module you talked about there are 11 modules.
They are-
1.Introduction to Stock Markets
2.Technical analysis
3.Fundamental Analysis
4.Futures Trading
5.Option Theory
6.Option Strategies
7.Quantitative Concepts
8.Commodity Markets
9.Risk Management & Trading Philosophy
10.Trading Strategies & Systems
11.Financial Modeling for Investment practice
But actually there are 10 modules. Shed some light
Thats right, planning the 11th module 🙂
Hi,
You have mentioned that there is a module of Quantitative Concepts, but there isn’t anything as such, in Varsity.
Check this Karan – https://zerodha.com/varsity/module/trading-systems/
Wow, great content. I am compelled to re-enter the market after 2008, this time more prepared. Can you please suggest 2-3 great books too?
Happy to note that, Amit 🙂
I’d suggest you read the contents on Varsity, I’m certain it will help you through.
Dear Sir,
One doubt about margins/leverage given by Zerodha,
I take trades in Cover Order which provides high leverage and my day turnover goes up to 1 lakh or more i.e. the main question that I have less amount when I entered into trade but at the back leverage has been provided by Zerodha.
Will zerodha take any annual charge with account maintenance charge on this leverage provided during day trading?
No Ishant, Zerodha does not charge for providing leverage.
Hii Karthik, thanks a lot for this valuable information as I am beginner to this field and going to invest soon. I have lot of queries regarding to investing in stock market some of them was cleared with your modules. As I am going to investing my money for the first time suggest me some tips and what i need to learn more for investing.
And finally my another question is looks like little bit silly but i am going to ask, Is it better to do trading or investing and why?
Thanks.
Prudhvi, I”m glad to hear this! Good luck with your investing journey. I’d suggest you spend time learning about investing. You can try trading once you are comfortable with investing your money for longer period of time.
This is one of the best resources for the Stock Market.
Great Content for beginners!
Happy learning, Sachin!
Sir I want short stock in cash Market for one week how can I do this
You will have to do this in the SLBM section – https://www.nseindia.com/live_market/dynaContent/live_analysis/slbs_chain/chainDataBySeries.jsp
i have purchased share of real estate now i ma confused whether it is f&o or equity
how to know that?
I’d suggest you speak to the support desk, they will help you with this.
Dear Karthik,
I am not able to understand contents coming in the Rectangular Balloons Popping up in Holdings View under Net Change and Day Change.
Value within the Brackets is the +/- %. But what about the value outside the Bracket? Please give detailed explanation.
Ramesh, can you call the support desk for this? It will be much easier to explain.
Namasthe!
Is it necessary that for every SELL should be followed with BUY and for every BUY there need to be a SELL also?
What happens if I don’t do the corresponding trade doesn’t happen?
Hmm, its better if you look at it this way – every buy order requires a sell to square off. Every short trade (sell first) requires a buy order to square off.
How i can use FD as collateral in Zerodha ?
Nope, not as of now.
Great content sir.
Very much thankful to you for a great job.
This will definitely help to gain knowledge in the stock markets.
Happy learning, Ankita!
Thanks, Karthik and all Zerodha team for putting up such a nice content on stock market trading. Despite having a non-finance background, the content was very much easier to understand. Thanks a ton again and keep spreading financial literacy.
Hey Shubham, thanks so much for letting us know. Glad you liked the content 🙂
Thank you very much for the very informative and well explained contents about stock market trading! I really learned a lot.
The only thing I was confused most of the time was the currency (It is in RS). Maybe changed it to international currency perhaps? (only suggesting). Again thank you very much and more power. I’ll certainly share it your site with my colleague.
I’m glad you liked the content and thanks for the feedback!
Hi, I am fresher for share trading. The tutorial (Varsity) is really good, in a very simple, easy to understand for the beginners, relevant information to start the trading.. Hope to make good use of this.. Thanks Karthik
Happy reading, Basavraj 🙂
Hi Karthik,
I have registered and opened an account with Zerodha. I wanted to know whether there is any online workshop or seminar for the beginners from Zerodha? .. Thanks
No online workshops as such, all of the study material is put up here.
Dear Karthik,
Is it possible to learn and trade in derivatives by learning the basics from the modules? Or do we need to learn TA and FA before broaching the subject?
Thanks,
FA is not really required, but maybe TA to help you with developing a market view.
Thanks Karthik! I wanted to develop a basic understanding of the subject.
Good luck!
Hi, is there a module on Mutual Funds?
Yes, its included within this module.
Very pleased to find such a gem available free of cost. It is a Bible for traders and investors that too in a very simple and understandable language.
Would love to know who wrote it .
Happy learning, Sayed!
Can I know who wrote this?
I did, please let me know if you spotted any errors, will be happy to fix.
What I wanted to know is that I know people who trade only on the basis of trend lines, indicators and basic technical strategies and are making good profit from the market on intraday basis,they don’t even know what options are in depth as you have explained.
What advantage does a trader has, who has given a lot of time learning and hardwork practicing and memorising theory behind everything that are mentioned in the content over the prior traders?
Hard work and practice pays rich dividends in any field right, not just trading 🙂
Hello Karthik Sir
Firstly thanks to complete team for putting up such informative content. I am looking to open an demat+trading account with zerodha. Few queries I have are as follows:
1. Will I get a margin for trades in Cash if I dont have balance in my account and how much time I get to put in the money in account either by transferring funds or selling the stocks.
2. What are terms BO, MIS, CNC , AMO and all? Where can I get a detail knowledge for all this.
3. While placing any order, Can I place SL and target in same order? How does this operate here?
Also, once I learn technical analysis, what should my next step for trading for short term. How do I set up up my approach. Do I need to see various videos and strategies available on youtube. Do I need to learn quantitative analysis after technical?
I know there are lots of questions, but I know this will be answered here and hence posted to clear my kmind.
1) You need to have cash in your account, margin provided is dependent on how much cash you have
2) Check this – https://zerodha.com/policies-and-procedures#tab-equities
3) Yes, you can, check this – https://zerodha.com/z-connect/tradezerodha/kite/introducing-gtt-good-till-triggered-orders
You can start with sing trading wherein you buy stocks and hold them for few days/weeks and at the same time read more about futures and options.
Hello
Even browing on zerodha is feeling like confusion. I mean you have modules in varsity to read, then you have z- connect, then tradinqna and many more. I mean how can we take proper steps in learning . Means first read this and than other kind of approach. I am keen on developing my own startegies rather than depending on other. Now earlier you told to start with swing trading, but question is to with what startegy. How to decide entry and exit. Please guide.
Also, I have mailed some account opening queries to zerodha team. But still have not recived any answers. Email is [email protected]
The best way is to pick up a module, learn what’s being discussed there and implement what you’ve learnt in the market by deploying small bits of capital. This way you get to validate your learning.
Thank You Soo Much For Your Guidance and For Your Precious Time Sir..
Sir I Am Not Getting Financial Modelling Chapter or Module .
Can You Please Guide Me . I want to Learn Financial Modelling.
We are yet to put up the module on Financial Modelling, hopefully it will be available by mid-July.
This is great Karthik! Very useful for beginners like me. I landed upon Varsity from this article – https://bytemine.io/blog/getting-started-with-technical-analysis/
Really great job putting in your efforts to publish this.
Cheers,
Sagar
Happy learning!
thank u kartik ji for the content with clarity.
Happy reading!
At 1030 AM when I see a value of Rs xx as a closing price on a particular day..What exactly does it mean? The closing value is of previous day? or is what exactly is a closing value u show even before the market closes?
That is the last closing price for the time period you are looking at, could be 5 minutes or 15 minutes.
But where can I see the time period. The interface do not indicate time period in that particular window. The only place the time period selected is in the charts.
Jagan, do call the support desk, they will help you with this.
First of all thanks a lot for putting out this brilliant piece of work.
A) This chapter mentions a module for “ financial modelling for investment practice”. Just wanted to know if this module is already published or if you can provide any time estimate by when will it be published?
B) Is there any module or chapter which can help me in modelling my portfolio? If not, can you suggest any books I can read for the same.
1) No, not yet. I will take this up after the personal finance module
2) You can check this – https://zerodha.com/varsity/module/risk-management/
Hi Karthik,
Excellent writing because of the simplicity and its content. Plz check for the word ‘compliment’ or ‘complement’ in the second last sentence “In the later modules, we will discuss the different trading instruments that you can choose to compliment your point of view”.
Regards,
Thanks for pointing that out 🙂
Hey, you talked about Quantitative concepts and Quantitative analysis in this chapter but i cannot find that module there are only technical analysis and fundamental analysis module, there is no Quanatitative analysis module. will it be added in the future or not.?
Check this – https://zerodha.com/varsity/module/trading-systems/ and this – https://zerodha.com/varsity/module/risk-management/
It’s awesome.
Regards
Check this –
Maru Gujarat
kya line boli biddu.
apun copy krega ise😁
nice content btw. thank you❤
Lol, which line are you talking about?
Please put up content on Quantitative Analysis.
Do check this – https://zerodha.com/varsity/module/trading-systems/
Amazing content; its a refresher for everyone.
Happy reading, Rohit!
Nice article. Very informative.
Happy reading, Akhilesh.
Can you please suggest any book on stock market for beginners?
VArsity is a good place to start 🙂
can anyone sell stock like delivery?
No, but you can short sell on an intraday basis.
Sir i have one question?
The investors said that when market price is going down then everyone going to buy the share ok i agree it and when prices going up then everyone think now sell it make profit this also i agree but the another side investors who is going to buy my share then he is not think that price high and i will face losses in case of price will going down after buying shares
Not everyone in the markets thinks alike, there are so many people with different opinions, that’s why the price moves 🙂
Thanks a lot if youre still reading this Im an 18 year old student who is interested in investing and this module is really helping me a lot in getting a grip. Thanks a lot.
Good luck Rakshith!
Great Content by Zerodha, the Learning experience is very good. Thanks, Zerodha
Happy learning!
Karthik
What is difference between spot market and derivative market?
can u elaborate those concepts please!
Chinmay, I’d suggest you check this module here – https://zerodha.com/varsity/module/futures-trading/
pls give link to read and understand the following topics mentioned in this chapter.
Here are some of the modules that we will cover in Varsity to give you a head up.
Introduction to Stock Markets
Technical analysis
Fundamental Analysis
Futures Trading
Option Theory
Option Strategies
Quantitative Concepts
Commodity Markets
Risk Management & Trading Philosophy
Trading Strategies & Systems
Financial Modeling for Investment practice
Check this – https://zerodha.com/varsity/
Hello Karthik, thank you for the excellent help you have been providing. A basic question related to equity and its relationship to derivatives
My understanding is derivatives just follows the underlying equity and have no influence in terms of moving the price up/down. However the price movement in equities reflects on derivatives right?
if the above understanding is correct, may i know how people say short covering pushed the marked up or vice versa? (i believe equity shorts are allowed only intraday)
Pls share some insight, thank you
Harsha
Harsha, this is true. Its the underlying markets which bear its influence on the derivatives market. However, the reverse is true for short durations of time, as in for intrday.
Sir I didn’t understand about the 3stage deviation in PE . please elaborate it with an example.
Sorry, where did you spot PE? Can you share more context, please?
Heloo what is the difference between a merchant Banker and investment Banker
Merchant banker specializes in the IPO process, while an investment bank is a larger umbrella which can also have a division to carry out merchant banking operations.
Hi
I am beginner in stock market.this information is very useful for my study i have one objervetion want to share that in intraday treading smoe company share price move 5 to 7 Rs per at 1 Rs earning view it is suitable trade pls advice if possible.
Yeah, these are volatile shares, you need to exercise caution while trading these stocks.
Why not the dates are updated yearly. otherwise we, fresher, feels like we are reading an old version of the subject.
There is no need to update the numbers, as this is not a data portal. The content is conceptual in nature and not written wrt to provide updated numbers.
Hi, Mr.Karthick. Really a good article for beginner.
Thanks for your efforts to bring this to us.
What should be the method to choose the trigger price to buy a share?
Depends on your point of view. If it’s TA, things like S&R or candle patterns come in handy. Else its FA, then valuation act as a primary trigger.
I’m new in the stock market and I had learnt so many thing about the stock market. I want to start my investing but I’m confused which stock to buy and In which I have to buy(Equity or F&N). One more question about Zerodha I had open a Demat account only. But I get the option of buying and selling. The Demat account is only for to store the share so why the buy and selling option is showing. Trading and demat are megre?
” I’m lucky I had open my account in zerodha.”
Customer Care are good they give all the answer of consumer!!
KEEP IT Up
Happy to note that, Sachin. I’d suggest you call the customer care number, they will help you with this understanding.
Hi, there are many modules and each has got different levels beginner, intermediate, advanced…. So how do we go about it. Do we first read the full module (all levels) and move to next module or do we first read beginner level of all modules and progress to the next level?
The module is broken down into levels only in the app, not on the web. THis is to ensure that there is a smooth flow. Otherwise content is the same, you can read it in one go.
Sir you have not told about spot market forward and derivatives…in detail…can u plz explain
Not required, Akshay since forwards is not there in India.
We all feel highly indebted to you sir, for providing this amazing knowledge in such a structured and systematic way.
Happy learning!
Who values the company i.e how is the valuation of companies decided
Do read the module on Fundamental Analysis Rahul.
happy to learn
Loved it your content..osm
Happy reading!
Sir,
I have recently started to do intraday.
Wish to constantly buy and sell just one particular company share.
For example once I bought and sold Reliance shares in ””MIS””
Made a profit of Rs 506.
About one percent of the Amount involved,viz Rs 50000.
Then for sometime the ril share went down again.
I thought of doing one more trade and bought similar RIL shares in “”MIS””.
But, now I could see that this fresh purchase got superimposed on earlier MIS trade ,which was highlighting the profit of Rs 506 in Green colour.
I got confused…but still managed…
RIL went up once again and I made a similar profit once again.
Sir,
What I don’t understand is that my second time buying was a fresh MIS. Trade.
Why did it get superimposed on the earlier trade and cause confusion.
Is there a way out…???
We can manage a Trade better if we see it as a Distinct second trade…
I wish to do many such trade with
SAME SHARE…
Please guide…how do I go about it…
Thanks
Also Request for an increase in NUMBER of shares in the WATCHLIST.
Initially there were only
20. X. 5. =. 100
Now
50. X. 5. =. 250.
Share mkt is growing…
Number of Good Shares are Growing….
Ipo are increasing….
Even UPSTOX has watchlist of 1500 shares.
Maybe
2000 is PERFECT for ZERODHA.
Hoping for the BEST…
Urvashi Mody
Thats because the buy average changes each and every time you trade the scrip.
Thank you for posting the content for free of cost , this has helped me a lot 😀
Happy learning, Ayush 🙂
what an explaination !!!!!!
Happy learning!
Really U made a amazing article for beginners..
Kudos..!!
Happy learning, Kadir 🙂
All of this content feels like bible stuff. For anyone looking for a direction into full-time markets, this is like a holy grail!!
Happy learning, Mayank!
Loving the content ! 😍
Happy learning, Sahil!
I am a new investor and these content are really a blessing… Thank you for the all the information!
Happy learning, Pallavi!
i love you sir
Thank you 🙂 We love you too!
who will reading this in 2021
Tejas, there are comments coming in, so I guess people are learning and educating themselves 🙂
Mind blowing. I have seen and read many knowledge platforms or articles but Varsity is fabulous. Very well designed and easy to understand. Great job zerodha.!!!
Happy learning, Ashish 🙂
Please kindly let me know what is Spot, derivatives, options market how can we access the same on kite
Milind, I’ve explained all these terms and more in both Futures and Options module.
Amazing very rich and insightful, truly loved the content !
Happy learning 🙂
I Did not understood the score grid instruction in the varsity app please Kindly explain is it for 15 Questions asked
Sorry, which grid are you referring to?
Very good content
Happy leanring!
I am too late to know about the varsity of zerodha. It will be very very helpful to the common people of our country to learn about the market in a very simple way. At the age of 60+ I have started to learn again about the market from varsity.
Thank you.
Hey Karthik, I’ve noticed that the contents in the varsity website is more detailed than the app. So which is better to study from?
Both are similar, Atharva. The content from here is broken down into bite-sized form and served on the app.
Hi sir,
What is 3rd standard deviation?
Be a new one to knowing these terms,want to know from your own simple words
It is an attribute of normal distribution. I’ve tried to explain it here – https://zerodha.com/varsity/chapter/understanding-volatility-part-1/
Quite impressive explanation on all issues related to the subject.
Happy learning, Chandrapalan!
Wow. The name is worth – “Varsity”
At least I dont know where, if such contents are available.
Basics always remain same. Even if one buy paid course(s).
Thanks to Zerodha, they could have charged, but its FREE to all.
Great.
Thanks, Prashant. I hope you continue to like reading the content here. We have also started putting up videos on youtube, hope you like that as well.
Hey it’s mentioned in this chapter that QA quantitative concept as the 7th chapter.buy there is no such thing in 7th chapter.could your team please provide an article on quantitative concepts.
Have discussed that here – https://zerodha.com/varsity/module/trading-systems/
1 Sir what is top line and bottom line growth ???
2 what is spot market???
Top line and bottom line refer to a company’s revenue and profitability, respectively. The spot market is the equity market.
I recently gave the varsity exam from the app to collect the certificates but the first module of stock market basics after finishing the test my each and every answer was wright but still I got only 210 marks out of 250 why is it so.
Not sure, Shivansh. Please create a ticket, team will check on backend.
very well structured content presented in a lucid way. thank you so much for sharing. I would appreciate if you may please keep it updating
Glad you liked it, happy learning 🙂
sir can you suggest that this is good for trading also.or any trading program
Sorry, not sure what you are referring to.
sir,there is nothing on how intraday trading works. is derivative market and intraday trading the same. i understood the spot market very well.
The chart analysis remains the same for both EOD and intraday.
Sir how can I get job in zerodha .
Keshav, you can keep a tab here – https://careers.zerodha.com/
What are the conditions which are required to be fulfilled for getting job?
The job description (when posted) will have the details.
Sir when POV is bullish whether it is beneficial to trade intraday in stocks or in stock’s future?????Please guide me sir only as knowledge purpose as I am in the learning phase.
It depends on your capital and risk appetite. But if you are a newbie trader, I’d suggest stocks, as you have better control over the quantity you are trading with.
Thank you so much sir. Your way of teaching is crystal clear in each and every topics. Blessed to have you sir. Thanks a ton.
Happy learning 🙂
Sir, May I ask your net worth please?
😶
Like I mentioned, good enough to take care of my family 🙂
Sir,I known fundamental analysis is not esay but i only like fundamental analysis compare to TA.
Is it okk.
Yup, you can. But do make an attempt to learn FA as it help you identify good trading opportunities.
Hi Karthik,
Am currently pursuing a EBMP course from IIMB. The class is interested in understanding on stocks/shares/trading etc.. From beginners level to experienced.
Would like to collaborate with you and look for options on how we can deliver a classroom trainings for our group of students(I believe these are no charges involved(Varsity)). This is purely a self initiative .(Not from any institute).
Pls lets us know how we can collaborate.
Thanks,
Thanuja
Thanks for reaching out, Thanuja. I guess we connected over email.
Hi karthik,
As u told in the previous modules, onpy face value money is counted as real company share and rest we pay will be sit in premium account.
So when buy an adani share now, aprt from face value my rest of money will sit in premium account of company.
Then if i am selling the share for less amount [say due to the current pressure on adani stocks], the other person is buying it for less price from me.
Here i am loosing my money[as a retail investor], how does this effect their balance sheets towards the huge loss.
That excess over the face value sits as the premium only at the time of IPO and not while trading. When you buy sell from market, you are trading against a counterparty just like you.
Hi karthik sir,
Thanks for the reply…!
okay, then why Adani NET WORTH is dropped (as shown in news 1 lakh crore), as share price is corrected with current market pressure and reports from foreign agency, the reduction in share price is directly attributed to the loss of retail investor as we increased share price in trading due to expectations. how this action impact wealth of Adani?
Because the promoter’s net worth and literally every investor’s net worth are tied to the share price of Adani, right?
Dear Karthik Sir, I am proposing a correction to the below sentence in this chapter,
Current Sentence:
`Does the straightaway go and trade the point of view?`
Corrected Sentence:
1. `Does s(he) straightaway go and trade the point of view?`
2. `Does the person straightaway go and trade the point of view?`
Checking this.
i have some queries .
1 when we make a zerodha demat account what facilities do we get or can we do intraday trade with it? .
2 what is the basic diffrence btw spot market and future or option ?
3 diffrence btw future and options ? and why it is referred as derivative market?
4 and the cnc and mis method can be used in only capital market?
1) For intrday trading, you need a trading account. With the demat, you can safely keep your equity investments
2) I’d suggest you check the module on futures – https://zerodha.com/varsity/module/futures-trading/
3) I’d suggested you check the module on Options – https://zerodha.com/varsity/module/option-theory/
4) Yes.
i have some questions
1 diffrence btw cash markets and future and option market ?
2 more on future and options what is the diffrence btw them and why they are referred to as derivative market ?
3 when we make our demat account can we do trading with it only?
thanks for your simple yet too much understandable module
For all these questions, you will have to do proceed to the next few modules, Vaibhav. Also, check the previous set of responses.
I need all subtitles of videos. Because I can’t hear as I am Deaf. Please add all subtitles of varsity of videos
Noted, sir. Will do.
Thanks, Karthik Sir for this Greatfull content🫡
Happy learning, Ravi!
Really informative and useful specially for the beginners to have equity market and financial knowledge
Happy learning!
Hi Karthik,I liked this module content, I would like to ask you is ther any application where we can track all our investments which is used by portfolio manager or asset management, if not then please make a module on investment analysis and portfolio management this will really help to manage investments.
Glad you liked the content. Not sure if I understand your query completely. Are you talking about a utility something like Console? https://console.zerodha.com/
Yes, that I was needed! Thank you!
Hi sir. This blog is really good for absolute beginners. But, I am wondering that there are lots and lots of market courses out there for which we have to pay and study about market. But this is absolutely free. My doubt is, in order to become a trader, is it enough for me to read the whole modules given in varsity to become a successful trader?? Or I after finishing this, do I have to study lot more. If yes, where can I learn after finishing this whole module. Thank you.
Thanks Krishna. Here is what I suggest – readup whatever is available here. With all the new knowledge, try and trade the market with smaller amounts. Keep increasing as you gain confidence. At any point if you feel you need more information/knowledge, then circle back and improve on those specific areas.
great content which has been studied by me till date. looking forward to next modules to develop more knowledge about market.
Happy learning, Mohak!
hello karthik, will there be a brief explanation about spot market and derivatives market in the upcoming modules? if not then can u please give me an insight on this
Yes, we have discussed this at length in Futures and Options module.
I had a doubt in a line in this chapter sir,
That Line:
With the recent up move, the stock’s price to earnings (PE) touched the 3rd standard deviation. There is only a 1% chance for the PE to breach the 3rd standard deviation. Hence, it is prudent to expect a reversion to mean the stock is a sell.
How could we calculate SD for PE given we dont have historical Data for PE or EPS??? Is there any website offering it or there is any shortcut for calculation sir??? On my search im unable to find a way, so please help me out
Great learning session for me. Thanks for your sincere effort in creating this content for free.
Glad you liked it, Shrinvas. Happy learning 🙂
What is macro and micro factor your are discussing in the POV segment?
Overall factors that influence the market (macro) and the factors that influence the stock in particular (micro).
Thank you for the insight.
Happy learning 🙂
Amazing content and very easy to understand. Perfect for a beginner 🙂
Thank you Zerodha- Varsity team 🙂
Happy learning, Sayali!
Sir, what is adjusted P/E and symbol P/E, diluted EPS in case of stocks/equity which are there on NSE website?
Its adjusted for corporate action I guess.
“Gratitude to Zerodha for providing this fantastic and entirely free content. I believe Zerodha’s initiative will positively impact market participants and contribute to fostering a bullish trend in the Indian economy.”
Happy learning, Shrikant 🙂
What modules should I read next if I only want to know about personal finance and investing (not into trading) ?
Then I’d suggest you check this – https://www.youtube.com/watch?v=vO2KGm8NM8E&list=PLX2SHiKfualHj_3Ms2t8cCd9tUpQHA9MW
Thank you so much Karthik for the content and thanks to Zerodha for this initiative. I tried many sources for the guidance. However, most of it is either dispersed or in islands. Varsity gives very comprehensive view and very much integrated, enabling reader to create POV as discussed above. As a beginner, I believe this in itself is very comprehensive and need not look for other resources till you complete all the modules and chapters.
Thanks for letting us know, Pavan. Really glad to know you liked the content here on Varsity!