Trading Basics In Equity Presentation
| Introduction to Trading Basics in Equity | ||
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| • Equity trading refers to the buying and selling of company shares on the stock market. | ||
| • It allows individuals and institutions to participate in the ownership and profits of publicly traded companies. | ||
| • Equities provide potential for long-term growth and income through dividends. | ||
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| 1 | ||
| Understanding Stocks | ||
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| • Stocks represent ownership in a company and are traded on stock exchanges. | ||
| • Common stocks offer voting rights and potential for capital appreciation. | ||
| • Preferred stocks offer fixed dividends but generally do not provide voting rights. | ||
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| 2 | ||
| Types of Orders | ||
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| • Market Orders: Buy or sell at the current market price. | ||
| • Limit Orders: Set a specific price to buy or sell shares. | ||
| • Stop Orders: Trigger a trade when the stock reaches a specified price. | ||
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| 3 | ||
| Bid and Ask Prices | ||
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| • The bid price is the highest price a buyer is willing to pay for a stock. | ||
| • The ask price is the lowest price a seller is willing to accept for a stock. | ||
| • The difference between the bid and ask prices is called the bid-ask spread. | ||
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| 4 | ||
| Long and Short Positions | ||
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| • Long Position: Buying shares with the expectation that their value will increase. | ||
| • Short Position: Selling borrowed shares with the expectation that their value will decrease. | ||
| • Short selling allows traders to profit from falling stock prices. | ||
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| 5 | ||
| Fundamental Analysis | ||
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| • Fundamental analysis involves evaluating a company's financial health and performance. | ||
| • Factors considered include earnings, revenue, debt, management, and industry trends. | ||
| • This analysis helps investors determine the intrinsic value of a stock. | ||
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| 6 | ||
| Technical Analysis | ||
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| • Technical analysis focuses on historical price and volume patterns to predict future stock movements. | ||
| • It uses charts, indicators, and patterns to identify trends and support trading decisions. | ||
| • Technical analysis assumes that historical price patterns repeat themselves. | ||
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| 7 | ||
| Risk Management | ||
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| • Diversification: Spreading investments across different stocks and sectors to reduce risk. | ||
| • Stop-Loss Orders: Setting predetermined exit points to limit potential losses. | ||
| • Position Sizing: Determining the appropriate amount to invest in each trade based on risk tolerance. | ||
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| 8 | ||
| Trading Platforms | ||
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| • Online Brokerage Accounts: Provide access to stock markets and trading tools. | ||
| • Mobile Apps: Allow trading on smartphones and tablets, providing real-time market information. | ||
| • Demo Accounts: Offer simulated trading to practice strategies without using real money. | ||
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| 9 | ||
| Conclusion and Resources | ||
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| • Trading in equity requires understanding stock types, orders, bid-ask prices, and risk management. | ||
| • Fundamental and technical analysis help traders make informed decisions. | ||
| • Utilizing trading platforms and resources can enhance trading experience and knowledge. | ||
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| 10 | ||