Preface

Introduction: Answers to Some Common Questions

n What are the Different Ways of Analysing the Markets?

n Why Be a Trader?

n When Not to Be a Trader?

n Why Spend Time Learning How to Trade or Invest by Yourself?

n Is Speculation the Same as Gambling?

PART 1: Financial Markets

1. The Capital Market

n Primary and Secondary Capital Markets

2. The Stock Market

n Important Points about Stock Markets for Traders

n How to Choose Stocks for Trading

n Glossary of Important Stock Market Terms

3. The Bond Market

n Zero Coupon Bond

n Yield and Price

n Bond Issuers

n Investing in Bonds

4. The Commodity Market

n Commodity

n Commodity Futures Exchange

n History

n Participants and Functioning of Futures Exchange

n How Commodities are Traded

n Types of Commodities

n Secondary Classification of Commodities

n Commodity Indices

n Major Commodity Exchanges of the World

n How to Trade Commodities

5. Foreign Exchange Market

n The Indian Market

n Interbank Market

n Major and Minor Currencies

n Cross Currency

n Quotes of Currency Values

n Contract Size

n PIP — Also Known as Tick or Point

n PIP Value

n Bid / Ask Spread or Buy / Sell Spread

n Margin and Leverage

n How to Start Trading in the Forex Market

n How Trading Works in the Spot Forex Market

n Carry Trade

n Why Trade Forex

n Factors Affecting the Forex Market

n Glossary

6. The Money Market

n Types of Money Market Instruments

n Conclusion

7. Derivatives

n Short Selling

8. Forwards

9. Futures

n Futures Trading Mechanism

10. Options

n Call Option

n Put Option

n Strike Price

n Expiration Date

n Exercise

n Option Moneyness

n Premium

n Exercising Versus Closing Out

n Types of Options

n Option Strategies

n Options Glossary

11. Swaps

n Interest Rate Swaps

n Currency Swap

12. Structured Products

PART 2: Technical Analysis

13. What is Technical Analysis?

n Price

n Volume

n Time Frame

n Price Variables

14. Charts

n Types of Charts

n Candlestick

15. Support and Resistance

n Support

n Resistance

n Why do Support and Resistance Occur?

n Drawing Support and Resistance

n Support and Resistance Zones

n Support and Resistance Break

n Trading Range

n Importance of Support and Resistance

n Trading Strategies

n Option Strategies

16. Trend

n Types of Trends

n Trend Classification

n Trend Lines

n Trend Line Break

n Trend Trading

n Trend Channel

n Volume

n Arithmetic and Semi-Log Scale

n Point and Figure Chart (P&F)

17. Dow Theory

n Dow Theory Principles

18. Candlestick Study

n Candlesticks Shapes

n Wicks

n Doji

Patterns

n Reversal Patterns

n Multiple Candle Patterns

n Continuation Patterns

19. Gaps

n Common Gaps

n Breakaway Gaps

n Continuation or Runaway Gaps

n Exhaustion Gaps

n Island Cluster

20. Chart Patterns

Reversal Patterns

n Head and Shoulders

n Double Top and Double Bottom

n Triple Top and Triple Bottom

n Rounded Top and Rounded Bottom

n V-formation

Neutral Patterns

n Triangles

n Wedges

n Rectangles

Continuation Patterns

n Flags and Pennants

n Conclusion

21. Indicators

n Construction

22. Moving Averages

n Simple Moving Average (SMA)

n Exponential Moving Average (EMA)

n Which Moving Average to Use

n Trading Moving Averages

n Important Points about Moving Averages

n Typical Price

n Envelope

n Bollinger Bands

n Parabolic SAR

23. Oscillators

n Centred Oscillators

n Price Rate of Change (ROC)

n Banded Oscillators

n Stochastic

n Williams %R

n Chande Momentum Oscillator

24. Trend Indicators

n ADX

n Aroon

25. Volume Indicators

n On Balance Volume

n Accumulation Distribution

n Chaikin Money Flow

n Chaikin Oscillators

26. Volatility Indicators

n Chaikin Volatility Indicator

n Average True Range

n Relative Volatility Index

n Conclusion

27. Fibonacci Numbers

n Retracements

n Fibonacci Arcs and Fan

n Fibonacci Trading Strategies

28. Elliott Wave

n Introduction

n Elliott Wave Principle

n Elliott Wave Theory

n Rules for Wave Count

n Wave Classification

n Wave Characteristics

n Wave Patterns

n Flat

n Irregular

n Triangles

n Trading with Elliott Wave

29. Gann Studies

n Gann Line

30. Money and Risk Management

n Trader's Life Cycle

n Psychological Management

n Risk Management