Library / MiyeeStockBuddy: The Complete Guide to Indian Markets
Index
Part 1. How the Market Actually Works 8
1.1 A Share Is a Slice of a Business 8
1.2 Why a Price Exists At All 8
1.3 The Plumbing: Demat, Brokers, Settlement and Circuits 9
1.4 Indices, and What Nifty and Sensex Actually Measure 10
1.5 Who Else Is In The Market 11
1.6 The Two Honest Questions Before Any of This Matters 12
Part 2. The Tide Under Every Boat: Macroeconomics 13
2.1 Inflation: Your Money Quietly Shrinking 13
2.2 The RBI Repo Rate: The Price of Money 13
2.3 Crude Oil: India Imports Most of What It Burns 14
2.4 The Rupee and the Dollar 14
2.5 Global Events: Why Your Morning Starts in New York 14
2.6 The Economic Calendar Worth Keeping 15
Part 3. Fundamental Analysis: Judging the Business 16
3.1 The Core Idea: The Shop, Not the Price Tag 16
3.2 The Three Statements, In Plain Language 16
3.3 The Ratios That Matter, and What Each Really Says 17
3.4 Reading the Annual Report Without Reading All of It 19
3.5 What Multibaggers Tend To Have In Common 20
4.1 Cyclical and Defensive: The Division That Matters Most 22
4.2 Banks and Financial Companies 22
4.5 Fast Moving Consumer Goods 24
4.7 Cement, Metals and Commodities 25
4.8 Energy, Power and Utilities 25
4.9 Real Estate and Infrastructure 25
4.11 A Sector Comparison Table 26
Part 5. Technical Analysis: Reading the Chart 27
5.1 How To Read a Candlestick 27
5.2 Support, Resistance and the Breakout 28
5.3 Trends, and the Only Definition That Matters 29
5.4 Gaps, and What They Tell You 29
Part 6. The Indicator Guide 30
6.1 ADX: Learn This One First 30
6.3 Moving Averages: The Smoothed Trend 31
6.4 MACD: Two Averages, One Momentum Reading 32
6.5 ATR: Your Volatility Yardstick 32
6.6 Fibonacci Retracement Levels 33
6.7 The Volume Based Indicators 34
6.8 The Automatic Traffic Lights: Supertrend and Parabolic SAR 34
6.9 The Base Breakout Screen 34
Part 7. The Complete Pattern Gallery 36
7.4 The Complete Pattern Table 48
7.5 How Often Do These Actually Work 49
Part 8. Derivatives: The Foundation 51
8.1 What a Derivative Actually Is 51
8.2 The Vocabulary You Cannot Avoid 51
8.3 Margin, and What Actually Leaves Your Account 52
8.4 Cash Settled and Physically Settled 53
8.5 Who Is On the Other Side 54
9.1 The Payoff Is a Straight Line 55
9.2 Why the Future Trades Above the Spot Price 55
9.3 Leverage: The Only Thing Futures Really Give You 56
9.4 Hedging With Futures: The Use That Justifies Them 57
9.5 Rollover, and What the Rollover Data Tells You 58
Part 10. Options: The Grammar 59
10.1 The One Sentence Definition 59
10.2 The Four Positions, and Why There Are Only Four 59
10.3 Strike, Premium and Moneyness 60
10.4 Intrinsic Value and Time Value: The Most Important Split 60
10.5 The Payoff Diagrams, and How To Read One 61
10.6 Selling Options: The Side Most Retail Traders Underestimate 63
10.7 Exercise, Assignment and Settlement 64
Part 11. Option Pricing and the Greeks 65
11.1 What Decides an Option’s Price 65
11.2 Delta: How Much It Moves With the Index 65
11.3 Gamma: How Fast Delta Itself Changes 66
11.4 Theta: The Rent You Pay for Time 67
11.5 Vega: Sensitivity to Expected Volatility 68
11.7 The Greeks Working Together 70
11.8 Put Call Parity, and Why Nothing Is Ever Free 70
Part 12. Volatility and India VIX 71
12.1 Two Kinds of Volatility, and They Are Not the Same Thing 71
12.3 The Volatility Smile and the Skew 72
12.4 Volatility Crush, Named Properly 73
Part 13. Open Interest and the Option Chain 75
13.1 What Open Interest Actually Counts 75
13.2 The Only Four Things Price and Open Interest Can Say 75
13.3 Reading the Option Chain 76
13.6 A Practical Ten Minute Routine 78
Part 14. Option Strategies, Built From the Four Positions 80
14.1 How To Judge Any Strategy in Five Questions 80
14.2 Directional Strategies 80
14.3 Income Strategies, and Their Real Cost 81
14.5 The Strategy Summary Table 86
Part 15. Costs, Taxes and the Arithmetic of Frequency 87
15.2 The Expiry Day Tax Trap, Stated Plainly 87
15.3 How Trading Income Is Taxed in India 88
15.4 The Arithmetic of Frequency 88
Part 16. Risk Management: The Part That Decides Everything 90
16.1 Position Sizing: Risk a Fixed, Small Amount 90
16.2 Write the Stop Loss Before You Enter 90
16.4 Rules Specific to Derivatives 92
16.5 The Checklist Before Any Trade 92
Part 17. Four Trades, Start To Finish 94
17.1 Case One: A Breakout That Worked 94
17.2 Case Two: The Same Setup, Failing Properly 95
17.3 Case Three: A Bull Call Spread, Managed 96
17.4 Case Four: An Iron Condor Through a Bad Week 97
17.5 What the Four Cases Have in Common 97
Part 18. Mutual Funds and Systematic Investing 99
18.3 The Two Choices That Decide Most of Your Return 100
18.4 The Expense Ratio, and Why Small Numbers Matter 101
18.5 The Systematic Investment Plan 101
18.6 The SIP Arithmetic, Worked Out 102
18.8 How Mutual Fund Gains Are Taxed 102
18.9 Choosing a Fund Without Being Sold One 103
Part 19. Building a Portfolio, and a Plan To Learn 104
19.1 Asset Allocation Comes First 104
19.2 The Emergency Fund, Which Comes Before Everything 104
19.4 Where Derivatives Fit, If At All 105
19.6 A Thirty Day Plan To Actually Learn This 105
Part 20. Common Mistakes, Ranked by What They Cost 108
20.1 Position size chosen by margin rather than exposure 108
20.2 Buying far out of the money options because they are cheap 108
20.3 Selling naked options for the income 108
20.5 Averaging down into a falling position 108
20.6 Trading a scheduled event with plain options 108
20.7 Confusing activity with progress 108
20.9 Ignoring the balance sheet because the chart looks good 109
20.10 Believing more indicators means more certainty 109
About This Guide and Its Author 113
© Vipin Nair. This guide is for reading online only. Copying, downloading, printing and redistribution are not permitted. For study and general reference; not legal, tax or investment advice.