Comprehensive Syllabus for a Stock Market Course
Participants in this course will gain a comprehensive understanding of the Indian stock market, including everything from fundamental trading concepts to sophisticated tactics. It will concentrate on technical and fundamental analysis, investing in stocks, derivatives, and commodities, as well as the theoretical and practical facets of stock trading.
Course Duration: 8 Weeks (2 Months)
Class Schedule: 3 sessions per week (1-2 hours per session)
Course Fee: 10,000/-(including all taxes)
Designed For:
– Beginners interested in stock market investing and trading.
– Intermediate investors and traders who want to deepen their knowledge and skills.
Mode of Delivery:
– Online (Live sessions, recorded videos, and downloadable resources)
– Practical Demo on Trading Platforms (e.g., Zerodha, Upstox, etc.)
Module Breakdown:
Module 1: Introduction to the Stock Market (Week 1)
What is a Stock Market?
– Overview of the Stock Market ecosystem.
– Functions of stock markets: Capital formation, liquidity, price discovery.
– Structure and functioning of the Indian stock market (NSE, BSE).
Types of Financial Markets in India
– Primary vs. Secondary market.
– Introduction to equity, debt, and commodity markets.
Stock Market Terminologies
– Stocks, bonds, indices, IPOs, and securities.
– Market participants: Retail investors, institutional investors, brokers, SEBI, etc.
How the Stock Market Works?
– Trading hours, market orders, and price quotations.
– Bid-ask spread, order book, and market depth.
Regulatory Authorities and Compliance in India
– SEBI (Securities and Exchange Board of India).
– Role of stock exchanges: NSE & BSE.
– Legal framework and investor protection mechanisms.
Module 2: Understanding Stocks and Other Instruments (Week 2)
Understanding Shares and Stock Types
– Common vs. Preferred shares.
– Rights, bonus, and splits.
Stock Valuation Techniques
– Face value, market value, and intrinsic value.
– Price-to-Earnings (P/E) ratio, Book Value, Dividend Yield.
Understanding Bonds and Fixed Income Securities
– Corporate Bonds vs. Government Bonds.
– Yield to maturity, bond duration, and risk factors.
Other Investment Instruments
– Mutual Funds, ETFs, REITs, and their role in portfolio diversification.
– Commodity Trading: Gold, silver, crude oil, etc.
Module 3: Introduction to Technical Analysis (Week 3)
Basics of Technical Analysis
– The importance of price charts and patterns.
– Key principles: “Price discounts everything,” “Prices move in trends.”
Charting Tools and Types
– Line chart, bar chart, and candlestick chart.
– Timeframes and chart patterns.
Trend Analysis
– Support and resistance levels.
– Trendlines, channels, and market phases.
Technical Indicators and Oscillators
– Moving Averages: SMA, EMA.
– RSI, MACD, Bollinger Bands, Stochastic Oscillator.
Volume Analysis
– Volume vs. Price relationship.
– Volume-based indicators.
Module 4: Introduction to Fundamental Analysis (Week 4)
Fundamentals of Stock Valuation
– Understanding financial statements: Income Statement, Balance Sheet, Cash Flow Statement.
– Key financial ratios: P/E ratio, P/B ratio, ROE, ROCE, and Debt-Equity ratio.
Macroeconomic Factors Impacting Stock Markets
– GDP, inflation, interest rates, and fiscal policies.
– The impact of global events on the Indian market.
Industry Analysis and Company Research
– Sector performance analysis.
– Qualitative analysis: Management quality, business model, competitive advantage.
Understanding the Role of News and Market Sentiment
– Sentiment analysis and market psychology.
– How news events (e.g., elections, global economic events) impact the stock market.
Module 5: Derivatives Market (Week 5)
Introduction to Derivatives
– Definition of derivatives: Futures, Options, and Swaps.
– The role of derivatives in risk management and speculation.
Stock and Index Futures
– How Futures contracts work.
– Hedging and speculation strategies.
Options Trading
– Call options, Put options.
– Option pricing: Intrinsic value and time value.
– Basic strategies: Covered calls, Protective puts, Long Straddle, etc.
Understanding the Indian Derivatives Market
– Nifty Futures, Bank Nifty, and stock options.
– SEBI regulations on derivatives trading.
Module 6: Risk Management and Trading Psychology (Week 6)
Risk Management Principles
– Risk tolerance and position sizing.
– Diversification and portfolio management.
Stop Loss and Take Profit Strategies
– Importance of setting stop-loss levels.
– Types of stop orders: Trailing stop, Limit orders.
Psychology of Trading
– Understanding behavioral biases: Overconfidence, Loss aversion, Herd behavior.
– The role of emotions in trading decisions: Fear and Greed.
Creating a Trading Plan
– Setting realistic goals and objectives.
– Risk-to-reward ratio and discipline in following a strategy.
Module 7: Advanced Trading Strategies (Week 7)
Advanced Technical Analysis Techniques
– Fibonacci retracement and extensions.
– Elliott Wave Theory, Gann Theory, and Ichimoku Cloud.
Options Strategies for Advanced Traders
– Iron Condor, Butterfly Spread, Straddle/Strangle.
– Options Greeks: Delta, Gamma, Theta, Vega.
Algorithmic Trading and Quantitative Analysis
– Basics of algo-trading.
– Using programming languages like Python for automated trading strategies.
Intraday Trading and Scalping Strategies
– Types of intraday strategies: Momentum, Range-bound trading, Breakout trading.
Module 8: Trading Platforms and Execution (Week 8)
Introduction to Trading Platforms
– Popular trading platforms: Zerodha, Upstox, Angel One, etc.
– How to use the platform to execute trades, access charts, and place orders.
Order Types and Execution
– Market orders, Limit orders, Stop-loss orders.
– Margin trading and leverage.
Using Stock Screeners and Technical Tools
– How to use stock screeners for identifying investment opportunities.
– Setting up technical indicators and alerts.
Backtesting and Paper Trading
– Understanding backtesting strategies and analyzing past performance.
– Practice with paper trading to simulate real market conditions.
Additional Resources:
Case Studies: In-depth analysis of successful stock traders, crash events, and market corrections.
Assignments & Quizzes: Weekly assignments to test theoretical and practical knowledge.
Course Outcome:
– Understand the basic functioning of the Indian stock market.
– Perform technical and fundamental analysis for making informed investment decisions.
– Develop risk management strategies for different market conditions.
– Implement advanced trading strategies in the equity and derivatives markets.