Stock Market Course – Learning the Workings of the Stock Market

With the stock markets soaring to new highs, the interest in the stock market is more than ever. This interest is the biggest reason why stock market courses are in demand. The average Tom on the road wants to enter the market and make the proverbial hay while the sun shines. Some oft-asked questions are:

  • Where can I learn stock market for free?
  • Which course is best for the stock market?
  • How can I get a job in the share market?
  • Is it a good time to invest in stocks?
  • Where can I learn stock market for free?
  • Which is the best course for the stock market?
  • How can I learn stock market course free online?
  • Which is the best stock market course for beginners?

Stock Market Course – From a beginner’s perspective

The History of Savings and Investing in India

Traditionally, India has been a land of savings. Saving for a better future, saving for planned and sometimes unplanned expenses, saving for retirement etc. Bank deposits were the go-to savings platform for many middle-class families. Investing made an entry en masse much later, there are reasons for this shift from savings to investment.

The rapid fall in deposit rates in the past few years has shaken the belief in the hot favourite instrument for investments – fixed deposits. Many contemplated a shift to alternative ways of parking surplus funds and the process quickened after demonetization as banks sharply reduced deposit rates.

What has been a no no in many families is now becoming a reality. Indian middle-class families are veering towards equity and bond investments, and also to fixed income mutual funds, which are more tax-efficient and yield better than fixed deposits. Indians are increasing their exposure to equities, indicating a shift from traditional investment assets such as gold and bank deposits.

Savings and Investments serve Different Purposes

  • The primary purpose of investing is to create wealth.
  • Investments allow you to meet your short-term and long-term goals.
  • They also help you lead a comfortable life post-retirement.
  • Investing ensures that you’re prepared for unforeseen emergencies.
  • Investments like equity can protect your money against the effects of inflation.
  • Another great reason to invest is to reduce your tax burden.
Stock Market Course - Benefits of Investing

Theories explained by Robert Kiyosaki & Warren Buffett further helped to popularize the investment wave.

Stock Market Course – Rising Demand Due to the Interest in the Stock Market

With the stock market soaring at 50K levels and more, the stock market seems like the place where everyone wants to invest their money.

The number of new dematerialized accounts, or demat accounts, opened during financial year 2020 was the most in at least a decade at 4.9 million, a 22.5% increase from the 4 million demat accounts opened in the previous year, showed data from the Securities and Exchange Board of India.

Total demat accounts at the end of fiscal 2020 stood at 40.8 million, up from 35.9 million on 31 March 2019. The table below shows the gradual increase in the number of demat accounts in the last decade – thus indicating the growing interest in and appetite for the stock market.

Stock Market Course

Need for a Stock Market Course led by Affinity to Investment

Having understood the importance of steady investments, the roadblock for a newbie is the lack of knowledge and the myths around the stock market. With the fear of missing out and greed to make the most of the bull run at the stock market, the need to learn the basics of the stock market is more than ever. There is a demand for an authentic stock market course with the majority looking for a stock market course that is online.

Given this demand, the stock market and the e-learning sector have developed simultaneously over the last few years. There are multiple short-term and long-term courses available in the market today. These certification courses have been set up by stock market experts, as well the regulating bodies of the Indian stock market, like NSE (National Stock Exchange), which is a leading regulatory authority on the markets.

Stock Market Certifications Courses

1. Learning about the basics of the Stock Market:

Taking a certification courses on the basics can help one cover essential points like:

  1. The capital market structure;
  2. Fundamental Analysis;
  3. Technical Analysis;
  4. Mutual Funds; and
  5. Equity Investing, etc.

After picking up the basics, one could choose to either study Technical Analysis or Fundamental Analysis in detail.

2. Technical Analysis Certification Courses:

Technical analysis is the study of historical data to forecast future price movements and make profitable trades. If you are looking to trade to achieve your financial goals, learning about the basics of technical analysis is a prerequisite.

However, its advanced practices are essential for anyone who wants to build their career as a full-time trader.

Some of the things one learns here are:

  1. Theories of technical analysis;
  2. Candlestick patterns;
  3. Indicators and oscillators; and
  4. Using popular trading strategies, etc.

A certificate course can help one learn about these advanced tools and indicators with exposure to strategies as well. It should also provide theoretical and practical knowledge to ace technical analysis.

3. Certification Courses in Fundamental Analysis:

For those who want to take up the path of investing, fundamental analysis is a useful skill.

Studying fundamental analysis can help one grasp the factors that can affect the long-term growth of investments. In turn, they can make the most sensible and informed decisions to grow their portfolio.

Some of the things one learns here are:

  1. Basics of equity analysis;
  2. Industry analysis;
  3. Evaluation of business models;
  4. Corporate governance; and
  5. Evaluation of management, etc.

4. Learning about Options Trading:

The equity segment of the stock market is where most beginners might participate.

However, with growth in knowledge and experience, investors and traders can shift to newer segments of the stock market.

One of these segments is the derivatives market.

Derivatives are instruments which derive their value from an underlying security. Options are the most popular derivatives, but they’re also very risky.

Due to their risks, it’s best if an aspirant builds a strong theoretical knowledge base to help them achieve success practically.

Some of the things you will need to learn here include:

  1. Options terminologies;
  2. Open interest;
  3. Popular options trading strategies; and
  4. Options Greeks, etc.

This knowledge base can be built with a certificate course, and beginners can get the right kind of knowledge to create their own options strategies as well.

5. Learning about the Currency and Commodity Markets:

Other newer segments of the market with high risks are the currency and commodity markets.

To trade in these markets successfully, one has to pick up newer knowledge about these segments which include:

  1. Analyses related to trading in these segments;
  2. Types of derivatives involved;
  3. Building trading models; and
  4. Macroeconomic factors involved, etc.

Stock Market Courses for Career Advancement

Educational qualification required to make career in stock market:

  • Few recognized, easy and quick short-term certificates without any essential educational degree allow exploring different avenues
  • The certifying authority for these courses is NISM / NCFM, which are nationally recognized certification mandatory for various professionals in capital markets in India. Anyone who wants to know the fundamentals of companies and has some basic interest in Indian capital market can go for these pocket-friendly courses
  • NISM / NCFM Certifications can expose you to a plethora of different fields of knowledge within the capital markets.
  • One could choose from the different types of derivatives, investment advice, risk management, and other wide-ranging subjects. Individuals aspiring to enter the financial services industry in India have better prospects if they first get these certifications. Post completion, one can make an entry into the stock market as a trainee and proceeds depending on his / her interest
  • Whereas, an MBA in finance or capital markets is generic and essentially a study in financial markets, corporate finance and portfolio management, with an emphasis on equity, bonds, foreign exchange, and their various derivatives markets. These specializations help one in charting a rewarding career path in the world of stocks and investments. However, as a standalone course, an MBA is not particularly useful as it touches upon the surface and does not have enough depth that is required to pursue a career.

Stock Market Course – Becoming an Analyst

To become an analyst, one can go for a reputed charter financial courses like CFA or CA are great qualifications to pursue. CFA charter is considered as the gold standard for the investment industry, and charter holders enjoy a mark of distinction throughout the world.

It provides a deep and fundamental understanding to be able to analyse companies and practical skills related to investment decision-making. Whereas, niche courses like CMT, FRM for those who are more inclined towards trading, technical analysis, risk management, and quantitative finance.

Key Takeaways about Stock Market Course:

  • Learning about the stock market is important to be able to successfully trade and invest in it.
  • Certification courses are a beneficial way to build the required base of knowledge about the markets.
  • These courses can also help one learn about the newer and riskier segments of the market as well.

Popular Stock Market Books

  1. One Up on the Wall Street
  2. The Intelligent Investor
  3. Beating the Street
  4. Common Stocks and Uncommon Profits
  5. The Little Book that Beats the Market
  6. The Warren Buffet Way
  7. Stocks to Riches
  8. Learn to Earn
  9. How to Avoid Loss and Earn Consistently in the Stock Market?
  10. Fundamental Analysis for Investors

Other References:

Technical Analysis of Stocks

Stock Market Astrology

Options Trading in India

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