HOW TO START TRADING? || BEGINNERS TRADING COURSE

Booming Bulls

22 Sept 202418:33

Summary

TLDRThe script is a comprehensive guide to trading, emphasizing the hard work and potential losses involved. It explains trading basics, such as buying and selling commodities, and introduces stock market terminology like 'equity' and 'partnership.' The speaker simplifies concepts like IPOs and the role of NSE in trading. They discuss the importance of research and calculated investment over gambling in the market, highlighting the differences between retail traders, HNIs, and institutions. The video also covers various trading styles like intraday, swing, and investing, and touches on technical analysis tools available on platforms like TradingView.

Takeaways

😀 The speaker emphasizes the hard work and financial risks involved in trading, including the effort put into learning and the potential for significant loss.
💰 The concept of trading is simplified as buying and selling anything for profit, exemplified by purchasing an item for ₹1 and selling it for ₹150 to make a profit.
📈 The video script introduces the idea of equity, explaining it as ownership in a company through shares, which is a fundamental aspect of stock market trading.
🏢 Discusses the role of different market participants, including retail traders, high net worth individuals (HNIs), and institutional investors, highlighting the scale and resources each group brings to trading.
🌐 Mentions the ease of trading from home through the internet and the impact this has had on the number of people trading, and the subsequent increase in trading losses due to inexperience.
📊 Emphasizes the importance of focusing on the right aspects to avoid being part of the 90% of traders who lose money.
📉 Explains the three categories of trading: intraday, swing trading, and investing, each with its own approach and time commitment.
📱 Showcases the use of mobile applications for trading, demonstrating how to use an app to monitor and execute trades on the Indian market.
🌟 Highlights the use of technical analysis in trading, introducing concepts like support and resistance levels, trend lines, and various technical indicators.
🚫 The speaker avoids trading in low-volume stocks to prevent high fees and prefers trading in indices like NIFTY due to higher liquidity and lower fees.
🎯 Sets a goal of reaching 10,000 likes on the video to encourage viewers to engage with the content and share it with friends to unlock more educational videos faster.

Q & A

What does the speaker suggest is required to advance in trading?
-The speaker suggests that to advance in trading, one needs to work very hard, potentially lose a lot of money, watch many videos, and be prepared to go to great lengths to learn and apply that knowledge.
What does the speaker claim about the series they are creating compared to paid courses?
-The speaker claims that the series they are creating will be better than many paid courses and will be available for free.
What is the basic concept of trading as explained in the script?
-The basic concept of trading explained in the script is buying and selling anything, such as gold, silver, wheat, or onions, with the aim of making a profit, exemplified by buying something for ₹1 and selling it for ₹150.
What does the speaker mean by 'Equity' in the context of stock market trading?
-In the context of the stock market, 'Equity' refers to a type of security that represents ownership in a company, such as shares or stocks.
How does the speaker differentiate between retail traders, HNIs, and institutions in the market?
-The speaker differentiates these groups by their resources and approach to trading. Retail traders are individuals trading on their own, HNIs (High Net Worth Individuals) have more capital and resources, and institutions have entire departments dedicated to research, risk management, and trading.
What is the significance of the National Stock Exchange (NSE) in the trading context mentioned by the speaker?
-The National Stock Exchange (NSE) is significant as it is a major exchange in every country, providing a platform that connects companies and brokers, facilitating the buying and selling of shares.
What does the speaker mean by 'Leveraging' in trading?
-Leveraging in trading refers to using a small amount of capital to control a larger amount of investment, thereby放大投资回报率, but also increasing risk.
What are the three categories of trading mentioned by the speaker?
-The three categories of trading mentioned are Intraday trading, Swing trading, and Positional or Investing.
What does the speaker suggest is the reason for 90% of people losing money in trading?
-The speaker suggests that the reason for 90% of people losing money in trading is due to focusing on the wrong things, such as not using the right trading methods or not having a calculated approach.
What is the importance of Technical Analysis according to the speaker?
-According to the speaker, Technical Analysis is important in trading as it involves the study of historical price patterns to predict future market behavior, rather than Fundamental Analysis which is more applicable for long-term investing.
What is the purpose of the mobile app mentioned by the speaker for trading?
-The purpose of the mobile app mentioned is to facilitate trading on the go, allowing users to monitor stocks, execute trades, and manage their portfolios conveniently through their mobile devices.

Outlines

00:00

📈 Introduction to Trading and Stock Market Basics

The speaker introduces the concept of trading, emphasizing the hard work and financial risk involved in advancing from a novice to an expert. They discuss the importance of subscribing to their channel for a free series that will be better than paid courses. Trading is simplified as buying and selling anything for profit, exemplified by buying an item for ₹1 and selling it for ₹150, making a profit of ₹50. The speaker then explains the stock market and the meaning of 'stock' and 'equity'. They use the analogy of a partnership to clarify these terms, explaining that owning shares makes one a partner or shareholder. The explanation continues with the role of the stock exchange, how trading is facilitated through it, and the different fees and taxes involved. The paragraph ends with a discussion on why 90% of people lose money in trading and the importance of focusing on this statistic.

05:02

🏢 Understanding Different Trading Entities

The speaker elaborates on the three categories of market participants: retail traders, high net-worth individuals (HNIs), and institutional investors. They describe the resources and strategies employed by HNIs and institutions, such as offices, teams, research, and calculated investments. In contrast, retail traders are often described as less informed and prone to making impulsive decisions, leading to losses. The paragraph also touches on different trading styles such as intraday, swing trading, and investing, each with its own set of requirements and risks. The speaker emphasizes the importance of understanding leverage, screen time, and decision-making in trading.

10:04

💼 Live Trading Demonstration and Platform Features

The speaker provides a live demonstration of trading on a mobile app, explaining the process of buying and selling stocks. They discuss the concept of leverage in trading, how it allows traders to multiply their capital, and the associated risks. The demonstration includes placing a trade, setting stop-loss and target levels, and explaining the cost of trading. The speaker also touches on different types of trading such as Forex and cryptocurrency, and the importance of choosing the right trading platform. They mention various markets like Australia, Germany, Hong Kong, Japan, US, and UK, and discuss the Indian market's Nifty 50 index. The paragraph concludes with a mention of upcoming dedicated videos on technical analysis and live market trading.

15:05

📊 Technical Analysis Tools and Strategies

The speaker introduces the concept of technical analysis using the tradingview.com platform. They discuss various tools and indicators available for technical analysis, such as candlestick patterns, trend lines, support and resistance levels, and different types of analysis theories. The paragraph also mentions the importance of understanding market structure, trend trading, and the psychology and risk management aspects of trading. The speaker sets a goal of reaching 10,000 likes on the video and encourages viewers to like and share the video to unlock more content. They conclude by teasing the next video in the series, which will focus on candlestick patterns and levels.

Mindmap

Keywords

💡Trading

Trading in the context of the video refers to the act of buying and selling various assets such as stocks, commodities, or currencies with the goal of making a profit. The video emphasizes the hard work and potential financial risks involved in trading, such as losing money. It is central to the video's theme as the speaker discusses the process and challenges of trading as a business or investment activity.

💡Equity

Equity is mentioned in the script as a fundamental concept in finance, referring to the value of an entity, such as a company, that is calculated by subtracting its liabilities from its assets. The video simplifies this by explaining it as ownership in a company, which is crucial for understanding how investing in stocks represents partial ownership or partnership in a company.

💡Stock Market

The stock market is a central theme in the video, depicted as a platform where stocks are bought and sold. The speaker uses the stock market as an example to explain the trading process, mentioning how one can become a shareholder or equity holder by purchasing shares of a company.

💡IPO

IPO, or Initial Public Offering, is briefly touched upon in the script as the first sale of stock by a company to the public. The video uses IPO to illustrate the transition of a company from private to public and how it relates to the availability of its shares for trading by the general public.

💡NSE

NSE, or National Stock Exchange, is referenced as a key player in the Indian stock market. The video describes how NSE connects companies and investors, facilitating the trading process. It is used to exemplify the infrastructure that supports trading activities in the stock market.

💡Intraday

Intraday trading is a specific type of trading discussed in the video where positions are closed on the same day they are opened. The speaker uses intraday trading to contrast different trading styles, emphasizing the fast-paced decision-making and screen time required for this method.

💡Swing Trading

Swing trading is another trading style mentioned in the video, which involves holding positions for a few days to a few weeks. The concept is used to demonstrate a trading approach that requires less frequent trading and decision-making compared to intraday trading.

💡Investing

Investing is presented in the video as a long-term approach to the stock market, where investors hold onto stocks for an extended period, such as months or years. The video contrasts investing with trading, highlighting the use of fundamental analysis and a more patient, long-term perspective.

💡Leverage

Leverage is discussed as a financial tool that allows traders to control a larger amount of capital than they actually possess. The video explains leverage in the context of trading, where it can amplify both gains and losses, and is particularly relevant to intraday and swing trading styles.

💡Technical Analysis

Technical analysis is a key concept in the video, referring to the study of historical price patterns to predict future market movements. The speaker mentions technical analysis as a tool used by traders to make informed decisions, in contrast to fundamental analysis, which is more commonly used in investing.

💡Stop Loss

Stop loss is a crucial term in the video, describing an order placed with a broker to sell a security when it reaches a certain price. The video explains how a stop loss can limit an investor's loss in trading, using it as an example of risk management in trading.

Highlights

Emphasizing the hard work and financial risk involved in trading to reach advanced levels.

Highlighting the importance of subscribing to the channel and enabling notifications for a free trading series.

Defining trading as simply buying and selling of anything, like gold, iron, or even vegetables.

Explaining the concept of profit and capital in trading with a simple example.

Clarifying the meaning of 'stock' and 'equity' in the context of stock market trading.

Discussing the role of partnerships and ownership in the stock market.

Describing the process of buying shares from the stock market and the role of NSE in facilitating transactions.

Mentioning the IPO process and how companies sell shares to the public.

Explaining the difference between retail traders, HNIs, and institutional investors in the market.

Pointing out that 90% of people lose money in trading and the importance of focusing on this statistic.

Discussing the three categories of trading: intraday, swing trading, and investing.

Explaining leverage in trading and how it allows traders to use a small capital to trade larger volumes.

Describing the difference between trading in the stock market versus forex and the concept of spread.

Providing a walkthrough of using a trading app for the Indian market, including watching lists and trading options.

Discussing the importance of technical analysis in trading and its difference from fundamental analysis.

Giving a live demonstration of trading on a mobile app, including setting stop loss and take profit levels.

Introducing TradingView.com as a top website for technical analysis tools.

Announcing an upcoming series on technical analysis, risk management, and live market trading strategies.

Encouraging viewers to like and share the video to unlock the next video in the series quickly.