Ratio Analysis.

Return on investment (ROI)

Compare the income and cost of an investment.

ROI can be expressed by ratio or percentage.

If ROI is more the 0.00 or 0%, its considered as best investment.

It is used to measuring company’s performance whether it is using the sources efficiently or not.

Return on Equity (ROE)

ROE is used to calculating how mach a company earned in comparison to its equity shareholders fund.

Return on Equity (ROE) is one measure of how efficiently a company uses its assets to produce earnings.

It will be expressed in Percentage only.

                  Return on Equity = Net Income/Shareholder's Equity

       

                     Where, Shareholder’s equity = Total Assets- Total liability of the company.

Return on Assets (ROA).

ROA is used to measure the performance of Company’s management.

ROA helps to investors how profitable a company is relative to its total assets.

If a company holds more assets, it can earn more profit. Otherwise it can not earn the high profit.

Asset Turn over Ratio

This ratio is used to calculate company’s revenue for every Rupee of company’s Assets.

Revenue means all sources of income. It includes sales, and other revenues.

Interest Coverage Ratio

This ratio is very essential for creditors and debenture holders of the company.

A ratio used to determine how easily a company can pay interest on outstanding debt. 

Dividend Payout  Ratio

Dividend Payout Ratio is used to calculate how much company has paid the dividend out of its profit.

If this ratio is high means company is one of the well-wisher of investors.

SHARE MARKET BASICS

MODULE-1: SHARE MARKET BASICS

1. Concept of Share market.
2. Concept of IPO.
3. Free access of ODIN software
4. Basic knowledge of cash and Derivative Trading
5. Simple way of Stock Trading.
6. Use of stop loss and Tailing stop loss
7. Selection of Stocks
8. Idea of Stock Investment
9. Profit booking stock trading

MODULE-2: STOCK MARKET INTERMEDIATE

1. Concept of Intraday Trading
2. Trading of Delivery Shares
3. Concept of Margin Trading
4. Method of Swing Trading
5. Method of future and option trading
6. Strategy of different kind of Cash and Derivative trading
7. Calculation of Future price and option premium
8. Application of trading rules in real market trading.
9. Investment and return in both markets.
10. Profit booking trading Future and option trading.

MODULE-3: ADVANCE MODULE

1. Proper understanding of the market.
2. Knowledge of Fundamental Analysis
3. Knowledge of Technical Analysis.
4. Practical use of the tools.
5. Creating and handling of Stock Portfolio.
6. Knowledge of Trading and Investment.
7. Ability of Stock Research.
8. Knowledge of Risk Management.
9. Concept of Hedging.
10. Trade confidently without the help of experts in any market condition.

OBJECTIVE OF SHARE MARKET BASIC MODULE

1.      To understand the basic concept of Share market.

2.      To understand the Index as market parameter.

3.      To understand how ODIN software works.

4.      To get basic knowledge about cash and Derivative market.

5.      To gain the ability how to select and buy IPO.

6.      To gain the confidence of training through Risk Management.

7.      To gain the perfection of using Stop loss.

8.      To start paper trading before real market trade.

9.      To understand market movement.

10.  To rectify previous mistakes done in the time of trading.

11.  To follow the logic and rules of trading.

12.  To know the art of share trading.

13.  To understand the market crash.

14.  To select the shares before trading.

15.  To be able to handle own trading

16.  To get the conception of brokerage and other cost calculation.

17.  To be able to over emotional trading and get the profit making habit.

TAKE AWAY OF SHARE MARKET BASIC MODULE

1.      Basic concept of stock trading.

2.      Function and effect of index.

3.      Selection of good or profit making IPO.

4.      How to use of ODIN software.

5.      How to trade in cash and Derivative market.

6.      How to use proper stop loss to trade safely.

7.      How to maintain own trading account.

8.      What are the common mistakes traders usually make while trading.

9.      How to select and trade stocks to make profit.

10.  How to fix buy and sell target to gain from the trading.

11.  What are the points to follow during trading.

12.  How to avoid maximum loss.

13.  How to gain the confidence for share trading.

14.  How to use the margin for trading.

15.  How to calculate profit after trading cost.

16.  How to calculate risk of trading.

17.  How to achieve the basic qualities of professional trader.

Relative Strength Index (RSI)

Relative Strength Index (RSI) is a Technical tool in Stock market. RSI is a pre indicator of price moments of shares.

RSI rate between 0 to 100. When RSI is above 70 share price will come down when it’s below 30 share prices will go up.

Signals can also be generated by looking for divergences, failure swings and centerline crossovers. RSI can also be used to identify the general trend.

Calculation of RSI

                  100

    RSI = 100 - _______

                 1 + RS

        RS = Average Gain per day / Average Loss per day

It should be calculated based on 14 periods. Periods may be in the form of months or weeks or dates.

The very first calculations for average gain and average loss are simple 14 period averages.

First Average Gain = Sum of Gains over the past 14 periods / 14.

First Average Loss = Sum of Losses over the past 14 periods / 14

The second, and subsequent, calculations are based on the prior averages and the current gain loss:

Average Gain = [(previous Average Gain) x 13 + current Gain] / 14.

Average Loss = [(previous Average Loss) x 13 + current Loss] / 14.

Taking the prior value plus the current value is a smoothing technique similar to that used in exponential moving average calculation. This also means that RSI values become more accurate as the calculation period extends. Sharp Charts uses at least 250 data points prior to the starting date of any chart (assuming that much data exists) when calculating its RSI values. To exactly replicate our RSI numbers, a formula will need at least 250 data points.