Download
trading strategy by using events data n.
Skip this Video
Loading SlideShow in 5 Seconds..
Learn stock market courses from NIFM Institute PowerPoint Presentation
Download Presentation
Learn stock market courses from NIFM Institute

Learn stock market courses from NIFM Institute

56 Views Download Presentation
Download Presentation

Learn stock market courses from NIFM Institute

- - - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript

  1. Trading Strategy by using Events & Data

  2. Introduction Everyone wants to earn money from the stock market but they don’t know the way by which they can earn it.

  3. NIFM introduces the short term course, which helps you to be the masters of stock market. After studying this course you will figure out the way to earn from financial market. Now money making in stock market is no more difficult for you. We have developed the best of the best strategies of stock market.

  4. Trading in stock market is always been experts task. Where to put money, what to buy these are the questions that an investor or a trader always willing to get the answer. Before investing, Global market research is very important. World markets are inter connected like if US market is doing well so most likely rest of the markets will do better as all markets in the world are directly or indirectly affect each other. Global Research

  5. Global Research

  6. Global Research Example: Most of the Indian IT companies have foreign clients and most of their business comes from abroad. If foreign markets are performing better, then Indian IT companies get more business from abroad. As a result more jobs will be created in the economy and Indian market will grow faster.

  7. When anything happens on the International stage, good or bad, it usually affects the world markets whether it is election or interest rate decision or budget etc. It affects the market as global investors or traders keep eyes on such events. Markets react very sharply whether upward or downward after the event. Example: If US fed hikes the Interest rate, the world market will react negatively and market will go down and vice-versa. Global Events

  8. Global Events

  9. It is most important factor on which stock market completely depends. To know the economic health . Data’s are very important like Unemployment Claims, GDP, IIP etc. If the data of the economy are coming good it means the economic health is good and vice-versa. Example: If you have to get to know your health status you get to check your blood samples. The report of the blood samples will tell you how fit you are. Similarly the data will tell you about economic health. Economy

  10. Economy

  11. This is the factor that adversely impact on economy and stock market. Scandal creates panic in the stock market in case of scandal, market goes down sharply. Investor lost confidence in the market and sell their positions. As a result market reacts negatively. Example: In 2009, all we remember about Satyam scam. We have seen a huge correction in the stock in the same day as the news came out. Stock corrected upto 80% in the same day. Scandal

  12. Scandal

  13. Take note of what is happening inside of the company itself. If the CEO or top management just dumped 50000 shares it may be time to get out insiders from the stock. The insiders know the company better than any analyst. If the no. of shares brought by individual inside the company has been increasing. It may be good time to buy the stock. Insider Activity

  14. Political factor also affects the stock market in the short term as well as in the long term. If any political party comes in the power that is investor friendly or in full majority it is good for the market. Example: In 2014, BJP govt. comes in the power with 282 seats or in full majority and market reacted very positively after results and till 2014 market has grown up by 50%. Politics

  15. Politics

  16. Naturally fear can change investment habits after 9/11. People lost their investment and it took long time to recover their losses. War/ terrorism is something which negatively affect the stock markets. War / Terrorism

  17. It actually tells you the real picture of the economy. You can find out by currency analysis the out flows or inflows of dollar. Example: If INR is getting stronger it means more dollar are coming in India, which means investment are coming in India and vice-versa. Currency analysis

  18. The above factors are affecting the economy directly once you find out the economic health by analyzing the above factors now you need to understand how to select the potential sector of the economy to earn money. Conclusion

  19. Selecting a sector of best growth is very important factor. You need to understand the sector’s growth and its aspect. We try to understand this by example. Sector selection

  20. Example No. 1- Although aviation sector is not considered as profitable sector and the great market king Mr. Warren Buffet maintains that this sector is never been a good investment idea. But we have seen a great return in aviation sector in last year because the crude prices are at life time low. All aviation stocks benefited with low crude prices and they improved their profit margins. Aviation Sector

  21. Aviation Sector

  22. Example no. 2- All paints stocks like Asian paints and Berger paints also benefited from low crude prices. Paint companies used crude oil as a raw material. When crude prices are low their profit margin are high and vice-versa. Paint Sector

  23. I.T. Sectors- This sector is a favorite sector for investor as this sector has showed a tremendous grown in past few years. But the right time to investment is when the INR getting weaker as I.T. companies core business come from abroad in dollar and their margin are high while INR is on decline and vice-versa. I.T. Sectors

  24. Metal Sectors- this sector works with the growth of economy. Metal stocks grow while manufacturing sectors is growing. Manufacturing industry demand for metals and metals stocks make profit while industries demand metal. Metal Sectors

  25. Example no. 3- Pharma and F.M.C.G. sectors are considered as a most defensive sectors. Investors move their investment from other sectors to these sectors while risk in the market. Pharma & FMCG Sector

  26. James and Jewelry Sector- This sector is ever green sector as Indian love to buy james and jewelry in all months of the year. But some govt. rules and regulation effect its growth. If govt. hikes the import duty or impose any restriction on gold then the margins of profits gets low and vice-versa. The growth of this sector effects by govt. policies. James and Jewelry Sector

  27. Automobile Sectors- This sector has two aspects like automobile company make vehicle for both private use and public use. Demand for public vehicle may not affect much by any factor but the demand for private vehicle affect when interest rate is high/low or when the price of petrol changes or some environmental issue may take place. Automobile Sectors

  28. Banking Sector- This sector is back bone of economy without banking sector we can’t even think of stock market. Banking sector is directly linked with stock market. If stock market doing well then banking sector will definitely perform well. Banking Sector RBI POLICY

  29. Real Estate Sector- It is a very risky sector in all time. Every human being wants to own his/her house but hardly 50% people may be able to buy it. The growth of this sector depends on many sectors. Such as interest rate, disposable income etc. this sector is also concern with demand supply issue. This sector is in news mainly before RBI meet to anticipate to reduce the interest rate. Real Estate Sector

  30. Telecom Sector- Telecom sector’s growth depends on govt. policies. They need more spectrum and tower for deliver better services. In India tower and spectrum sharing between telecom companies in India remained difficult in last few years. So this sectors growth is mainly depend on its services. Telecom Sector

  31. Script Selection- It is very important to select a script to trade or invest. Your selection must be right while choosing a stock as your earning is totally depend on your script. Script Selection

  32. Selection of a script has two aspects- • Fundamental analysis • Technical analysis • Fundamentals Analysis- In fundamental analysis we look at the following thing in stock. • Book value: Book value means the value of the business according to its book or financial statements. A stock is value buy when it is near book value or below book value. Two Aspects to select a script

  33. EPS- Earning per share is very important fundamental aspect of selecting share. It is a parameter of company growth. When EPS is high growth projection is high and vice-versa. P/E Ratio- price earnings ratio is helping to evaluate the value of the share. Market Cap- market capital is the total value of the company. Big company like RIL industry has big market capital. It is generally considered as a safe bet for investment.

  34. Management- the company can grow only when management of the company is effective. Effective management of the company ensure the success. Beta- beta is an indicator of stock’s standard deviation, or volatile. High beta stocks are traders friendly Stocks. Investor generally buy such stocks which are not much volatile. Dividend- a company is considered as a good company when it distributes the dividend to its shareholder.

  35. Technical Analysis- In technical we look at the following aspect. Volume- Volume is the number of stock bought and sold in a single day of trading. Make sure the average volume of the stock is over 50k or so. If the volume is low then liquidity is low. This means it is hard to buy and sell because there aren’t many buyers and sellers and the stock moves in a very choppy fashion. It creates a lot of unnecessary volatility. This is generally involved with penny stock.

  36. Open Interest- Many stock often options contracts for buying and selling in future. When the buyers in future are more than sellers stock shows premium and when sellers are more than buyers stock shows discount. This help to show the trend. Moving Average- A moving average is a simply an asthmatic means of a certain number of data point. Traders and investors use moving average as a tool. 50 DMA, 100 DMA and 200 DMA are important to take position in stock market. It helps to know the trend of the market.

  37. Retail Sales: It is the total change in the sales at the given period of time in a country at retail level. Effect: Actual > Forecast = Good for Currency * If retail sales number is better than forecast then it is good for Equity market, Base Metals, Energy and bad for Bullion. Data Analysis

  38. Consumer Confidence: It is the measurement of consumer spending and consumer confidence in the economy. Effect: Actual > Forecast = Good for Currency * If data number is better than forecast then it is good for Equity market, Base Metals, Energy and bad for Bullion. Data Analysis

  39. Consumer Price Index (CPI): It is the change in the prices of good and services purchased by consumers. Its more important data to identify the inflation. Effect: Actual < Forecast = Good for Currency * If data is less than forecast then it is good for Equity market, Base Metals, Energy and bad for Bullion. Data Analysis

  40. Producer Price Index (PPI): It is the change in the price of finished goods and services sold by the producers. It is the indicator of consumer inflation. Effect: Actual > Forecast = Good For Currency * If data is better than forecast then it is good for Equity market, Base Metals, Energy and bad for Bullion. Data Analysis

  41. Core Durable Goods Order: It is the change in the total value of new purchase orders placed with manufacturing for durable goods excluding transportation items. Effect: Actual > Forecast = Good for Currency * If data is better than forecast then it is good for Equity market, Base Metals, Energy and bad for Bullion. Data Analysis

  42. New Home Sales: It is the number of new single family homes that were sold during the previous month. Effect: Actual > Forecast = Good for Currency * If data is better than forecast then it is good for Equity market, Base Metals, Energy and bad for Bullion. Data Analysis

  43. Building Permits: It is the new residential building permits issued during the previous month. Effect: Actual > Forecast = Good for Currency * If data is better than forecast then it is good for Equity market, Base Metals, Energy and bad for Bullion. Data Analysis

  44. ADP Non-farm Employment: It is the estimated change in the number of employed people in USA during the previous month excluding the farming industry and government. It is only the estimated change not the actual change. It is released 1 or 2 days before Non-farm Employment. * Its not so important as it is the estimated change not actual. Data Analysis

  45. Non-farm Employment: It is the actual change in the number of employed people in USA during the previous month excluding the farming industry and government. Effect: Actual > Forecast = Good For Currency * If data is better than forecast then it is good for Equity market, Base Metals, Energy and bad for Bullion. Data Analysis

  46. Unemployment Claims: The number of individual who filed for unemployment insurance for the first time during the past week. Effect: Actual < Forecast = Good For Currency * If data is better than forecast then it is good for Equity market, Base Metals, Energy and bad for Bullion. Data Analysis

  47. PMI: Purchasing manager in the manufacturing industry. It’s a leading indicator of economic health. Survey of about 400 purchasing managers ask about production, new orders, prices, supplier deliveries and inventories. Effect: Actual > Forecast = Good For Currency * If data is better than forecast then it is good for Equity market, Base Metals, Energy and bad for Bullion. Above 50 indicates industry expansion, below 50 indicates contraction. Data Analysis

  48. Industrial Production: It is the total production produced by manufacturers mines and utilities. It is very important data to check economic health. Effect: Actual > Forecast = Good For Currency * If data is better than forecast then it is good for Equity market, Base Metals, Energy and bad for Bullion. Data Analysis

  49. GDP: Gross domestic product It is the total value of goods and services produced by economic. Effect: Actual > Forecast = Good For Currency * If data is better than forecast then it is good for Equity market, Base Metals, Energy and bad for Bullion. Data Analysis

  50. Trade Balance: It is the difference between import and export during the previous month. Effect: Actual > Forecast = Good For Currency * If data is better than forecast then it is good for Equity market, Base Metals, Energy and bad for Bullion. Data Analysis