Stock Trading & Investing for Beginners 4 in 1 bundle course – Udemy [ Notes ]

Section – 1 : Stock and Stock Market Basics

1)Owners Equity  = Net Assets

2) Net Asset =  Total Assets –  Total Liabilities

3) Lenders expect Interest + Capital.

4) Share =  Partner’s percentage interest in owner’s equity

5) Stock = Fixed percentage of ownership in a company or business.

6) Stock Market =  Marketplace for stocks, where willing buyers and sellers of stock come together to trade with each other.

7) Trading can happen on a Stock Exchange or as a private exchange between two people.

8) Stock Market is  nothing but a platform for network of computers where buyers and sellers transact in any security.

9) Trading of stock happens in Primary Market or Secondary Market.

10) Primary Market is the market  where debt or equity securities can be issued by the businesses. The business is  known as the issuer of the security. The issuer receives funds from the investors, which may be individuals or institutions.  Since the investor buys security directly from the issuer, this market is called Primary market or new issue market.

11)  Going Public means allowing Public to buy securities for the first time, in a business.

13) Primary Market Issues –

> Public Issue :  Issued to members of public. May be IPO of FPO ( Follow-on PO)

> Private Placement : Qualified Institutional Placement ( Involves bidding from Qualified investors ), Preferential Issue( To identified investors )

>  Rights and Bonus Issue : Securities are  issued to existing investors. Rights is when Investors pay for new Securities, bonus is when shares are issued without payment.

12)  All the securities issued in the Primary Market get traded in the Secondary Market.

13) A Stock’s price reflects this continuous evaluation by Investors and also their expectation of performance of the business.

14) Stock Market Participants

– Retail Investor ( Individual investor with surplus money. Basic knowledge, and usually acts on his knowledge or financial advisor. Simple Investment strategy. Less Quantum.

— Institutional Investor ( e.g. Banks, Mutual funds, etc). Specialized knowledge and skills in investing. Complex investment strategy, and achieve results using derivatives. Quantum is large, and have fund mangers to manage the corpus.

15) IPO stands for  Initial Public Offering.  Its first public offer, and Post IPO – Shares become widely available for investment, and new types of investors become shareholders.

16) IPO ->  Fresh Issue  (  Company issues new  shares, Capital  goes up, % share goes down),  Offer for Sale( No new  shares, No Capital impact, Offered % shareholding goes down, not offered shares percentage stays)

17) FPO -> Follow-on Public Offer is made by companies that are already listed on the exchange, when they require additional capital for growth, or restructure capital by retiring debt.

18) Primary market is where securities are issued for the first time.  Once that process is complete, these securities  become available to be traded on stock exchanges.  The universe of securities that you can trade on stock exchanges actually constitute a secondary market.

19) The main functions of a secondary market are liquidity and price discovery.  Liquidity means the ability to buy and sell shares, as per the shareholder’s wishes. Price discovery means, the price at which the business can raise more funds, because Secondary market performs constant evaluation of the future progress of the company.

20) Data  from  Secondary Market is also used to generate benchmark indices.  e.g. Sensex and Nifty in India.

21)  In Secondary market, the stock prices are the result of continuous buying and selling of various types of participants in the market. This includes retail investors, institutional investors, short term and long term traders and market makers. It is set by the collective wisdom of all the participants.

22) There are two ways in which an IPO may be priced – Fixed Price or Dutch.  In fixed price issue, company decides the price, in consultation with Lead Manager.  The price is decided based on the expected performance and  price of  shares of comparable companies.  In Dutch or Book Built Issue, price is decided by Auction. The company and the lead managers set a floor price or a price band, and finally decide on a cut-off price.

 

 

 

 

 

 

 

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Two Golden Rules for a Happy Life

As I sat with my close friend today, I told her few  things which I felt are very important for all of us to remember. Here they go, as a reminder to myself –

  1. Everyone’s life has a mix of privilege, luxury, misery, shit and everything in between. Embrace the positive and good, be grateful for it. Accept the shit.  It all comes in a package, nothing really you go on selecting about it.
  2.  For anything to happen, motivation doesn’t drop from the sky.  That elusive word “Motivation”  exists only in the dictionary. What really helps is ACTION every single day, however small. Action is very powerful, it puts stop to the ever ending drama of the  mind – and it’s hell lot of ugly and powerful variations. Commit to ACT on things that really matter to you. Rest – to hell with them, just have fun!

Except in situations where you are dealing with psychopaths or someone extremely dangerous –  the above two should  do for a peaceful and happy life!

Have a good day and keep rocking!!

So, what do you do the WHOLE Day?!

The question I hear majority of the times.  The Question I hate to answer, but ended up answering the maximum number of times  in the last year and half. So, long story short. I quit full time last year because I wanted to be up close to girls when they were growing up.  I felt distant and disconnected with them.  Wasnt really there when they came back f from school.  So, for few months  I was jobless and then picked up part time in my old company.  Somehow, I have not felt  it as a “REAL” job because I work from home and its a Strategy job.  It needs  reading a lot, and for me reading never felt like work.

So, now I meet anyone. After basic courtesy , the next important question – “Do you work?”.    I reply,  “No, I do not work”.  Somehow, I just want to avoid  the  entire conversation around  how I work from home,  how I work part time, how I got this lucky job and can I work with kids running around. It gets personal, so easiest way out – “Nope”. Then comes the question –

So, how do you spend your time ALL DAY” ??

Yeah?  I really resist from punching the person on the face.  I smile and say” Kids, and errands. Oh yes, and some ME time!”.  I try to excuse and end the conversation.

Housewife or Stay at home mom is the worst job you could ever have in this world.  Over worked,  under appreciated and always thought as relaxing in the beach, when all you are doing is  dirty laundry or yesterday’s maths  homework.

In our society,  “WORK” is something that gets  “MONEY”.  But, “WORK” is also that saves “MONEY”,  and gives the head  of the  family  abundant “PEACE  OF MIND”.  It takes  lot of effort and self confidence to quit jobs and stay at home looking after innocent and extremely energetic young kids.  Oh  every day is different and you see all the stars in the day. The kind of stuff they bring from school,  the experiences they have!  Its such a satisfying experience to raise another human being, to see them transform into a beautiful  person and grow in size and shape, intellect and wit.

With different timings for schools, after  school classes,  packing home thrice  a day and making some treats, home  works,  play times  and story sessions – there is no fucking time to sit and drink a peaceful coffee! And all you get is – ” So, what do you do ALL DAY?!”.  Everyday,  I see bright young women –  well educated, sophisticated  and enthusiastic about life. And what do they do?   After husband leaves for work –  clean up, cook, look after the kid and look after the kid more.  The four walls of the house & the  kids  playground. These are  the only places they would ever know.  And the smile on their faces  is TIRED but SATISFYING!

Why can’t we just thank them enough to pause their life &  raise  another ?

Why can’t we volunteer to help her out with some errands or lend an ear?

Why can’t we stop asking her  what she does  ALLLLL day?

I now punch the person on their face –  in my mind , ofcourse. Whenever I hear this question,  a fake smile on my  face, an answer I’ve repeated thousand times and a punch on their face.

Have a good day and keep rocking!!

Exercise & Mental Health

I’ve come across this amazing TED Talk by a British Diver Leon Taylor.  He is an Olympian and this talk is about how exercise is one of the simplest things you can do to improve your mental health.  He  also funnily says,  Thinking is the cause of most the problems, and people should stay more in their bodies than in their heads.

I cannot agree more. The days I have felt most shitty are the days I have not moved at all. I recently started yoga thrice a week, and its something I really enjoy doing. I push myself harder and  it makes me feel accomplished – early on in the day.

Recently, I picked up swimming too  –  couples of classes down. Few more months to go,  I should have learnt it as a lifeskill.  I really liked swimming in the first few classes I went, and then kids exams and sick nesses gave a nice good break to the classes.

I tried  zumba, and ended up with an extra bone on my leg.  It didn’t suit me at all, although I tried it rigorously for 3 months.  So, that’s not for me.

There are few more things I always wanted to try, but I think it’s gonna be Yoga and Swimming for me.  Mostly, to workout on the alternate days. A walk of 30 mins will definitely do me good every single day.  All by myself.

Here’s the talk –

 

If you stumble by my blog, please do watch this.

Have a good day and keep rocking!!

Problems & Solutions

This is a very personal post and something I have really struggled all my 38 years of life. As I finally unravel all the  complexities, I figured out solution to the problems that plagued me for all the best part of my life.

Well begun is half done. Identifying a problem statement is 90 percent of the  job done. Most of the  people dont  know what shit they are in. At least I know. I acknowledge. What’s left is to execute and have an iron will to do it.

I’ve two versions to my  character – a confident, extroverted version. A depressed version.

Also, I have two people who live under me –

  1. A Strict task master who wants every single thing on the list to be completed.
  2. A  hyperactive inner kid who wants to try and  do everything in this world, while  alive.

So, I basically live in this  loop all the time –

a) The inner kid starts playing around. Ever curious. Creative and optimistic.  Always want to try new things. Gets bored by routine. Want to try out the most riskiest and adventurous stuff out there.  So, everything it sees – it wants to make a list and start doing it. But, it’s so distracted all the time –  all it does is gather information and add to the list. So, the list just keeps getting longer, this inner kid doesn’t get anything done. His job is to just curiously roam around the garden of life.

In this aspect, I am at my bubbly best and am open to new experiences and people in my life. I stay here 50% of my life.

b) As the tasks list gets longer and longer,  the task master gets jittery.  He does not have a track record of finishing things, and the longer the list – the more tensed about completing it.  So, he glances through the list and cannot decide which one to finish.  Picks up something to do, does it midway and then thinks “Oh, I should have done the other one first”.  But, when he takes over –  I am at my efficient best. I  finish activities one by one, and tirelessly. Often, I do things for long time.. It still stresses me out, but I keep going. Because, I want to finish things when I am in the flow. Once I rest, i know i get nothing done.

When I am doing tasks, my heart is beating very fast and my mood is very serious. Because, now I have the task of finishing stuff before the kid takes over.  And I start to get frustrated at the kid for making such a huge list in the first place.

And then, when I realize what I have accomplished is not even 5% compared to the list I have maintained in life – I get depressed. Life doesn’t make any sense.  I feel like shit.

I stay here 50% of my life.

And, I abandon everything and every effort I put so far.  Stay absolutely blank for some time. And then, my inner child kicks in –  fuck all, let me enjoy life. And he plays until the strict task master takes over again.

Because of this, I am mentally tired all the time, and do not go anywhere close to my goals in life.

Analysis on some fundamental questions I have always  had in my life –

Why do I start the habits and stop them again?

I start the habit after reading a lot. There is no conviction in my heart when I try to start anything. My mind is blank and doesn’t think anything. I make some plans – get up at a time, do something and blah blah. Since, I did not want to do anything from the bottom of my heart  – I dont feel any pinch when I try to push the time or abandon it altogether.

Why can’t I finish the simplest of the tasks like cleaning combs?

I have this task in my to-do list : clean combs. It takes exactly two minutes. Every single time I think of it, I am stressed. But, somehow inside me – there is extreme resistance in my brain. I can actually feel the physical resistance inside my brain. I see the combs, and I put them back. And at that moment, I get stressed out that I am not doing it. And I am really stressed out, my heart aches and my head hurts. I still dont clean the combs. I am okay to deal with the stress and pain, but still not do the action that is needed. And it just takes two minutes.

Why does any kind of action makes me anxious?

Its nothing to do with personal work. Even at work, any small work that  is given to me creates extreme anxiety, and I push it off until I can really push it off.  when I must do it now, or face the consequences, that’s when I pick up stuff and start doing.  Only when the time is completely running out, do I pick up pace and finish a mediocre version of the work.  Then, I curse myself for not starting things early. Now, this is very perfectly percolated into my routine with kids.  I start their projects or preparations for  anything very late, and it stresses everyone out.  Its just an extension of who I am, nothing to do with neglecting anyone or anything.

Why do I have so many unfinished courses on udemy, and elsewhere?

Because I never  really wanted to do them in the  first  place.   I just get fancy looking at stuff and reading them over  the Internet, but generally I have no intentions or plans of finishing the courses. I’ve brought countless  courses and books  that way, but they do not relate to the world I am in. And I abandon it very quickly.

I can’t relax. Anytime I sit idle for 5 minutes, I feel extremely anxious and un productive.

Every time I relax, I feel that I am a stupid  idiot who is wasting time when she should be finishing off the lengthy list that i have created for myself. I start fidgeting because the time is well spent on activity. What were you doing all the other time,I  ask myself.

I cant sleep for long hours.

The first thought that comes to my mind when I have little extended sleep or elaborate sleep is this – all the pending work that I have, all the unfinished tasks  and how I’ve been sleeping. For me, sleeping is being lazy.  I feel people should be up all the time, reading, writing or roaming around.  So, while I get nothing done by being up drowsy all the time, I do certainly am mindlessly busy and so am not sleeping.

I will first list down all the problems I think I have –

  1. Thinking that doing house hold chores  is really waste of time.  I cant get my head around doing something on time. Simple regular stuff really scared to do. I just dont do it.
  2. The very act of doing even a small thing creates immense tension inside my body. My head starts to buzz and I feel fainted. Even a small activity like cleaning combs.
  3. I make lists and then get stressed looking at them.  I do not complete one item from the list also, I just keep getting stressed. I do not allocate any time to do an item.
  4. Making endless lists  of really disparate items. Anything that catches my fancy really goes to the list, and does its bit in stressing me out.
  5.  With lot of  hungama, I start a habit and then leave it in between. And I never pursue it again, and it adds a lot to the stress  I already have  due to incomplete tasks at hand.
  6.  I want to do million things at the same time. Cannot pick top two or three. Everything in the world – I want to try. And then, I do not pick up anything. And then, I feel I am not learning anything.
  7.  I feel I dont know anything.  And I go into obsessive mode of reading about it. or listening about it. Then, i dont do anything for a while.
  8. Not sleeping enough
  9. Not eating enough healthy food
  10. Not eating on time
  11. Eating junk without any self control
  12. Holding onto anger for a very long time.
  13.  Just argue  for the sake of arguing, even when there is  no logic
  14. Crave for adventure every single day or minute of my life. Cant sit still for a while, life starts to feel pointless.
  15.  Extreme resistance to action of any kind.  I prefer to sit, think or read.  Getting up and doing anything is very very hard for me, unless there is a trainer sitting  on my head or I have my ego or job at stake.

After Introspecting a lot and and re-confirming with mom, here are the solutions  I figured –

Solutions

  1.   Not everything should get added to the list.
  2.  30 minutes or 1 hour have to make progress on the  list.
  3.  Start only two things and do next things only after they are done. Unreasonable     expectations are the problem. There is only so much only I can do.
  4. 45 minutes exercise mandatory
  5.  Six hours sleep mandatory
  6. Any small things – 2 days SLA to finish the work.

I have to use my intelligence to work for me, and not against me. I am quite confident these solutions will make my general living much more tolerable and happy.

Have a good day and keep rocking!

 

 

 

Dear Comrade Movie Review

I’ve been a fan of Vijay Devarakonda, after I accidentally watched Arjun Reddy.  Someone suggested to me that it’s a pretty intense story – exactly what I need to hear to watch a movie.  I really liked the depth he potrayed in the movie.  Ever since Dear Comrade songs have come out,  I’ve wanted to watch the movie.  As I did not get any company to watch it in the theater, I  had to patiently wait for Amazon Prime to stream it for me. And wait even more patiently to get 3 hours of free time at a stretch to finish the movie.  Finally, I’m done watching.

dear_comrade

Oh boy, Oh boy!  The movie is mesmerizing and captivating.  There’s nothing not to like in the movie.  It isn’t a love story,  it is a #Metoo Story, and how one should pursue their passion in life, despite all odds. And how a real comrade will stay by you and bring out the best in you, no matter what the circumstances.

First half is breezy and we get little scared that Vijay’s Arjun Reddy avatar will dominate  – but that quickly fades away, only to be replaced by far better things on the screen. The taking is very nuanced, and  every turn in the movie is  for the better.

Few  striking things in the movie are how girls who are passionate to do something different has to face a lot of shit in life, how it’s okay for lead actor in the movie to cry at the drop of the hat despite being a hot head,  how it’s impossible to change the core nature of a person – fuck naturo therapy and everything else,  and how you can never force someone to do anything –  you have to wait.  The climax where the Lilly bursts open, once her love for cricket is questioned and being called a talentless player – that says it all.

The songs wrench your heart, the background score soothes you.  The lead actors arrest you with their performances and you will come out of the movie nodding your head with what the director says – “Fight for what you love!”

Rating – 10/10

Have a good day and keep rocking!