Module-1
Cancept of Jnvestnaut
Ttmet :
husllian E. Shanpe ,"a cnahice o
LCtain psent vale Son aosome cnetin
Investimnt is the employusdt funda ou
ant with the alm of gtting nitiis it,
Busines Invatment - Tt to the manty
uacd Seon a puivate
DHivati buiness it i ths
ameust uwith which a peHAQn Atat his
butnis the additional amouat shich he
laten
Econo mic Invest met - Ità the addiian to
e Capital stoz k
Linvestnt lnaglies sotmatian c and.
puaductie capital the
plant
Fimancial Toestiat - t iu the allacation
HUAOUYCces toaset tht
expeted
-a-Q02s
ypes of Ameth
Einancial Ascta Real Asct
"Stocka .hand &Buslding
.Bonds "Daventonies
"Bank deposits . Precious mitala
Trade eCCiva ble Commoditie
.Real Estati
. Machiney
Tinancia AsetD is phypicad amet
cdatm
uchose value is dunivedom a contastial
Real Abst Tt iu physizad amtn azhich can
aia ndiyidual
sen and possessed by
as iguid comgaudto fnancial assct
As
Lnvestmmnt Attibutis
-Lnvutmut aould qennati
L Rtasn potutial
potntial inyestst is oltn asocatd aitth.
highen suiak
- It descoubes the kevel o
[Link] imvest
asoiatad hth
jn those inyetunta which align with hein
Misk tolnane devel
coneing
amd bond
aaet into cah"Lnvet mnt il stocks
kiqud than ncal ascto
time
veaton xpets t hold an investmint
s Divoucatien potantial - Avoailication involues
5.
Sprcadiig inytwt anons
i y -Some inyestmnta ane chosn to
miNmisth tas iabiditie of the imdidduals
Jhe nstin aom these mvetnti might out
be vuythat conpaned to ethen iavtmt
1Zntome bennation i- Lavetmt lat bonda
pxavsde mqulan incom
iwttust
added ttyacton
&. Capital sevalian Lavestmeta ite goNt
bonds dhe coidued salatialy sa cangaud t
dhe othn invetmatt avenLeai
method to psesANe Capital nathn taas
4.a. Goouth potitial-Jhx nvetmuti
apetd to have a steadyinceasen he
peiod o fme
o. Envionmutal, Sorial and GioeAnAMCA TESG1 edoru i
to the cYiteia that can -impast th
sustainabily k cthcal imgat an invechmat.
)Main cbjedti ves :
) Mazimizing the satwn i Jnvostona apct
hiah t eten om thu mvetmet
Jhi at Butn ds Hheotal income t
Jves toy n¿ceives dusung he holding peusd as
investoy
) Minimising sris k he rak holdina
Prkablity o the octual satun bicoMoing
lus tham the expeztudtin Aa
One peiad to anethen
Considiediskien than
chich doesnot chang much e
Sesndasy chyastias
ingesitant aupeit o, By nvetnut oostoptisn
if otomues heas-time and
invelved jm convotiny hahe nsesthint into csh.
Jhe invstmnt shich can be cohve-ti d inte
Enown a high iguid aszta
insestmut options
nwestou tm to make
make Hun
in those )nyeatmta alaici hae
Jigal and gulatory jumzw bak.
) Hedge againat inlation Bata a atinn bht
a coven against lton to
Prtt
jall. in pinchasig
the Hat Value a monuy Aenee
aM investmat
sheuldbe
tar incntiies luveators ty do inet in
Speculatan
a Pisso
plrAon
hiak thatt considing the
apelaton doeanat louy asseta to
Duoy tha but l thmmlati,She
qajt em the chang in mankt price.
Pais Lavestoment Spualation
he puhass a an assit Specalatien act af
ith the hope a ting conductnq a sinky
tans ia callud imvestmt inancial tiansatiom.
he hope suba tutal
Basn lex undanetalatosu Hlean say tchnical chas
-
and maket
deision iuaonmanct
compaa paychology
Time lans Bona longe Plans on a veuy slaznt
to zo me His
honizon
helding poriod be petiod Vanies
dap to mott
deistan i
fatoa algecting inystmuat
Cuatlable
Amall inentmat Aveaaes dite bank dapoity
ctf bamd
high inVston casn choDA invetmst ias
ealeatati.
must b cleas
th inestt aenus aill claangt
be to saNe
tax, eaun izud stzn, to gt the kant y
appreciato sRUity values ete..
3. JypeoinvethantA desÄon aboutcshe st
invut Ney mposit ant A Nunben
invustmt auaNailal l amd Hhe best
Ahat mtches invutmet ob,ectoes
The in
sitis u vsy poitant whn it comcs ta
Inveatmeut optiowa Secuntico hould be auschand
when thune prius ae lo_and uld be
S. Mood e he mantet . dhe shanenw deptnd
the Sundamtala
etaut the
HaetimentJhas s
a qualtati actan that ha an inluene on
6Zovestas funception Davesntmnt duisen oill
alao depid
yaiäevaalad undivalued
he will hold
nillll it
he idl buy it
, Envinohmental considenatioW) Lnestars pat
backgnound family xquiumeata, tiu asct e
neighiecurss e'colleaaua and othen etvtnad
Jaitusa will abe "nucnca he iavzstnuaat
deisiou
attitiesothe deading
vestmat
puotchane
attenats dhi
-Aeusties
ià
agtstie appoach thit indiidual
bnganisiten Jollow to m
make
nyonm d disiona
cboit alloutiny tin unds.
1. Sting wamial goal
9uisk toletance
Astssing Cmengny nd
3. Caatinga budgt and potjeho.
4: Diveuaing investmed
5. Conduchng sucaneh and analysis
&. Making njemed investment disiona
1. dizdanly iviewing and ucbalancing thtu
Yontjolio.
-2-&025
Derivatives -
A doiate i Coidast bztueen twD gates
shich doeanot hae a value o it own but
dinives he ale undzlying auct
Deivati tioding hapgins aven ctu casta
exchang
M
The undndying
be stokscomiaodites cuHency, indix
aMt
ete
Can
duges oh divatives
>foHwands
’ htuus
’ Swaps
- 3 - d 0 a s
Module- 3
Techntcal Analgis.
aool melhod sd
availae maakétdata
demand L Supply atoa
bath atia aad & ivstional decisioa
Qashaulas
time
o-3-an2S
a Sundaauatal -facosuy o technlcal
the oveuall
iient Afock maankot. It was áevelaped lay
CholesH. Dow
Dow tineouy
mankot dincont
TENET -1 [Binciple 1]-Jhe
stoks
dia s l t all avalable ilesmation
nomation that btuomes availabl,
TENET-.
Jhe maket has 3 tonds
Hunds i Biwsuy , stonday and minon tiunds
tunda
wMket' [Link] can at gn a folonged peicd.,
SeLonday enda ae the prie patton that aitot
as Cosiective polaa within majot poinasy
Jhex secondany taende ill coutei bit ta
Drinany
Minon lud o
meShay last
as mHtet notAe
TENET-3i
Whthen the ankt is moving upuand
downwand eyey und s maxtal on 3_phas
4. Acuumulatian pha i
Thu is dotndn the makat
4Jatitutionad mietoP4 enti fhe mankit
Ihy Yeaniae the manket has toucad he
dow piu and thug acumlate the stock
t such angs volumes over
olonged puuod o tme
This ive he otok pr an upuand puh
2. Dablic pawitcipatrDu phas
he investona ho lolous the technical
sümds notice he atny o
enu the mankit inrasing
They bugin buyng he stuk auoicg
am a t
mannY
cstabbohed
mank up phan
aDstubuticn phase
At the geak s& publhc particupaton gha
higla Luwela
thuA trends beccme
asailalale eveuybedy will e wing to
A tais Äage åtag
inatitutional inveatoa
TENE - i
each oth
movemt indez hould matca wtth
moYemuat o all othr hndics in the
mankat. Fox eranaple D4 CNX NIFTy
NIE
downwand it annot b declaued
bullid beaiah amd
TENE T- 5.
he taading valum mut conlom uidh the
priu tenda
h this pvincipe, any prinaaay und
Acendiug
maukt whthen upwas1d eY Mwt
in the tadiny volame Toy exanpl,.
the
be upporttid by whu he pncs
mankt phast
yaising
his as a pimany buld
exdn do clawiy
mevdua Voluwesshoudd in cortan
mankt, te tiading
TNET- 6 :
dean eVaMbal
in primauyend can be.
the aeveUSals
Conlased with sondy to considun
nave
mONEMAst a
And utal the uguoard
palougd paiad
EJRot waye
tthetock pices iove
in ncoatd pattrins Iwavul
ead down
These waves ane he eat bsgng and
impulses caunqins om the dumand
sllang Hhemkt
ae
movemt
Leapulaive OM Motive waves ae the
in
jn the isedion o a tiund
On the othn hand. CoYetve
diycton oppositt da a ongoing sumd
X Whatis ind 2
?
Mauket an aseti piu, Bu technical
idualcd by und Jans.
A tind yeveoal
pice diecton l an ast daug tte
Chast i
A chat i a quaphical su psWstsitatin o
haw Atocks pyie tradiag alume have
cangd
hes
Ven
3
time
3. andl stick
in chat is Aimple dpiztion o pie
gensal tnd
oveYiew btn
undstandig atenative options c< chang have
Onbidined.
BoM chat diaplaye he
cpen,high Luw and clore
Piees DHLC]n one Vestieal ban
High
Open
Ope
-how -how
Dousn day
ntenBlack baM Red ba
Candlestick chat sbees he open high ow
al boduy the
betecn the optaa and dos
the
body
ine abore
a
e body Js called
cal nck o hadow
Upper
wick
bodu
bpem
how kowen
wick
Ue doy
Doun day
Random halk IheoRyi
hicient mankit,
can't
pyedict as all mamdin usll be rlectd
Assump tiea o ndndom Lualk thecny i
>handem priu changs i- he pice changes
vandom futue movemens cannot
he coxccatd bacd On pat pnu moremusets
alone
Ydationodhip bituetn AucLesit
akuommal rnit by tradng basd an tae
histositad pxice
5he
he poiun ae indepundet the mnemut
xsme
Haat moYement o ctheócunhy Cannot
b sed do undeatand the pice
Be haviosal inane
behaional
batacen hundan payehelog1 and Yinanial
decisioa
Hee Invwstons ae tretid as nomal indiidunl,
Dnd_ nt xtronad alaile decinlon making
luenud by utain bais ond huy mate
iosht liad to decisica
Behavioal linanee -
Sl - Deception i Jhe concept s duupian
Haan swbat he actually does Thia leads
in deciaicn makinq
’mntiay ; Tt yeloe to oaking deciioa badan
CAHevt emotionadtteLnyestou cusLt ehaofi onal
deciainn ma king
’ Sociol ho decih ian makins
Behavional isanu bigs
onimaisn bias i It ocaeu whn the muestoru
on tine ingsamation hat matchus thin beliy
Cven ih the datai wiongas long as the
inlosmaten matches tauir
’Eapenientiad bias i This owsu whn DM ìnvestors
memoriU events
aade t n ch0096 even vwhn Such deçsion js
Mot xational
aversion Tt mako invstons avoid taking
a 3 k even.
um capoitncea
Over cnlidince
Qyot Catimat dhur abldy tading okille
make decsioww Senqoina Saclual eidemcs
culmn
’Drapaition bias Tt explains e teduy o
bnyetou to hofd on to the stocks even ae
decliniag belieing that ha p1a boill
apgrcat
>familiaahy biaa. whese nvators
plae tiiy investmeut in anilian stocls
Deposrtunities that have qourth pitintial
Mental accounting bios i Indiidualo budgtg
basid
cin adtndual,
AnnataMcs, YMosneg
cstia
based on Aubieve citenta Juada
do iationaldeciaions
Elicint Marntet ypofasis fEMH)
Nstiut thcouyewhtea suggut
hat pius Sinam cial instumist xeto all
2vailable maikit nlostaatim Zveloped
majer
manttht hypotaesis aue
3. Stcng fon m
Jhu wak lortm o EMH Auggust itpaut today
ps
stock picu' at all the data o
-and no tchnicad analysia can bi uhlisd
helg mestos trading decsaow
Sandamuntal analyu Wdndur vala and
bvor Valae strts Can be dtemingdand
invuotou have a chance of mating high
makt aveage.
Senmi EMH Aggut nat all
indomalicn aat ipublic J Aed n the
calcdation a stoth coout piu
Inves ton lannot wtlis either te chaicado
Aundamat analgis o qin aighen vauns ,But
, Bet
he ino1Matacn aat not sead1ly
ANailable the public can Saele inyestors
EMH sugpt that bath tae
iwtnitin D ayaila'b to the public od not
absonbed
type onmattan tht canqire
n he mantt Aence nvestorns
(aunot male yetam that eeeda moxal
Enamicad Tut o CMH
Sh emgitical tet heloa to undenstand tte
in He stDck mauket. It
hun
ushthr tae mantt efcinsy
m weak tonm Dmi otm
trong tom
A mathimati al indicato n tecanicad
kand
a matalmatiali
aionaip ciount pic to at Dics Lataich
l aelp
will hep 'temine taane pnus
CRoc)