Topics/Terms to know to start trading in the Stock Market
Some Important Topics with regards to trading-
The essentials (how the market works, different terminologies, and so on)
You can very easily learn it from YouTube.
Technical analysis
Trends, indicators, different rules and the nuts and bolts of technical analysis (charts, time frame selection).
Market Structure
Demand and supply zones and support or opposition.
(Also Read: Mortgage backed securities)
Price Action
Different kinds of candlesticks like doji, marubozu, and so forth
Price action patterns like-
- Head and shoulder
- Wedges
- Triangles (symmetrical, ascending you descending)
- Pennants
- Flag and pole pattern
- Inside candle
- Cup and saucer pattern
- Double/triple tops and bottoms
Volume analysis
Figuring out the change in volume with change in price.
Higher volume during rise or fall and lower vol during retracement.
(Also Read: What are Multibagger stocks?)
Stock selection
NR4/NR47, Screeners or scanners, fixed watchlist system.
Entry point, exit point
In any event 3 confirmations while entry, logical entry point
5-3-2 exit and pyramiding. Proper profit booking.
Stop loss
How to set it (technical), how to trail it.
Finding a logical SL, not too wide or narrow.
Risk Reward
Different risk reward ratios during some patterns. Avg risk reward and how to exit.
(Also Read: Initial Public Offering (IPO))
Risk management
Utilizing a SL, proper entry, restricted or more modest drawdown.
Position sizing
Proper number of shares dependent on your SL/risk. Also, when to expand your position.
Trade Management
How to hold on to winning trades, how to exit losing trades, how to decrease risk, and so forth.
Pre Market Analysis
News, macro factors, levels for stocks, Nifty and BNF analysis.
Post Market Analysis
Checking your analysis, major players, active stocks, sectors.
Trading Journal
Keeping a book and writing your trades, logic, learning lessons, and so on.
Trading Psychology
Not averaging down, not over trading, tolerance, and so forth
This is more important and more difficult than some other point.
(Also Read: What are Derivatives?)
Insights
This can be acquired only through experience.
At the point when everyone is anticipating a bullish move, you know that the stock will open hole up, trap retail traders and profit booking will begin and stock will fall.
What's more, that is simply trading in cash section. Not F&O. I haven't expounded on hedging, IV, OI, Delivery %, Option writing, and so on
These are only 17 points I have on top of my brain.
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