Equity Investments and Trading

Equity investment and trading involve the buying and selling of stocks or shares in publicly traded companies, with the goal of earning a profit. Both equity investing and trading carry risk, as stock prices can be volatile, but they also offer opportunities for significant returns based on market conditions. Investors and traders may use various strategies, such as value investing, growth investing, or day trading, depending on their objectives and risk tolerance.

EQUITY INVESTMENT

Equity investment refers to the long-term purchase of shares in companies with the expectation that their value will grow over time, providing capital appreciation and dividend income. Investors typically aim to hold stocks for a longer period to benefit from the company’s growth and profit sharing.

EQUITY TRADING

Equity trading on the other hand, is more short-term and involves actively buying and selling stocks to take advantage of price fluctuations in the market. Traders often focus on technical analysis, looking at chart patterns and market indicators to make quick, profit-driven decisions. The stock market is highly influenced by company performance, economic factors, market sentiment, and geopolitical events.

LONG TERM INVESTMENT

  • Market cycles , Business cycles
  • Power of Compounding ,Time Value of Money
  • Rule of 72
  • Analyse–Bhav copy etc
  • Credit Rating
  • Risk Factors–Market Risk, Credit risk, Interest rate Risk(Banks)
  • Investment Cycles–Impact from Budget, Tax polices, RBI, Fin results, AGM, Board Meetings, Dividend, Financial results etc

Technical Analysis :

  • Trend Analysis/Pattern –Historical Trends 
  • How to view Long term, Short term Patterns VWAP 
  • Moving averages-DMA, EMA, RSI, Resistance and Supports-PIVOT based tools, Fibonacci, Bollinger bands etc
  • Analysis from Trading View and Screeners

SHORT TERM INVESTMENT

  • Market cycles , Business cycles
  • Power of Compounding ,Time Value of Money
  • Rule of 72
  • Analyse–Bhav copy etc
  • Credit Rating
  • Risk Factors–Market Risk, Credit risk, Interest rate Risk(Banks)
  • Investment Cycles–Impact from Budget, Tax polices, RBI, Fin results, AGM, Board Meetings, Dividend, Financial results etc

Technical Analysis

  • VWAP, Volume Profile analysis
  • Moving averages, RSI, Resistance and Supports, Fibonacci, Bollinger bands
  • Trend Analysis/Pattern–Short term Patterns