Know your stocks

Last Updated 23 November 2011, 14:05 IST

Those who have knowledge, don’t predict. Those who predict, don’t have knowledge.”
Lao Tzu

Stock market investors often face the same problem — of closing the stable door after the horse has bolted. There is no denying that, stock markets are volatile. However, should you panic every time the Sensex sinks 400 points? Should you dump stocks, check out too soon and saddle up losses?

To deal with such situations, one needs to to be equipped with knowledge about the stock market and its tools and techniques that will help analyse the movement of stocks and track the performance of various industry segments and companies. This study will help one make informed decisions on time, every time.

It is obvious that when the market price of shares fall, the investor benefits by purchasing more units; and selling when the price rises. However, how does one  identify the trends and make the right move at the right time?

The stock markets have evolved with the arrival of high-speed tools like algorithmic trading and smart- order routing. A careful study of the working of the stock markets and an in-depth understanding of fundamental analysis, technical analysis techniques and instruments like futures and options can help a fresh trader participate in the stock markets, just like an expert.

Investment decisions involve assets from all around the globe. Understanding how to evaluate these investments therefore is very crucial. The risks to be evaluated include the usual suspects like currency risk. It also encompasses more subtle but equally important risks like political risk and corporate governance risk. As a trader, he/she needs to have expertise in identifying the most important risks and techniques to effectively measure and manage them.

Whether you are a serious investor or aspiring for a career in the stock markets, knowledge about all these aspects is key. With increased sophistication of the products and services being offered by the Indian financial markets, a wide range of specialised job opportunities have emerged. With the right knowledge and qualifications, you can make it to a good position. A good comprehensive programme can prepare you for multiple career options in this domain.

For a career in the financial sector, a student must follow the principle of  ‘moving water’. Be it a flowing river, or the crashing waves of the ocean — always keep moving. The minute the water becomes stagnant, it begins to rot. This applies to your career as well. The minute you stop learning, stop growing and stop facing challenges, your energy, creativity and zest begins to slowly die.

The BSE Training Institute Ltd., an institute for financial market-related courses, has launched a Post Graduate Diploma in Stock Markets (PGDSM) in collaboration with IGNOU.
PGDSM is a one-year distance education programme that offers the knowledge and skill set for a career in the financial sector. The course is an opening to a life as an intelligent investor and prepares you for a variety of careers in the financial markets.

The advantage of this course is that it gives students the flexibility to learn at their pace from home. The specialised knowledge of stock markets and investments, which was until recently available only in very select locations like Mumbai, is now available through the distance-learning programme to aspiring learners all across the world. Learners also have the option of availing optional additional benefits like contact sessions, online and video-learning modules and career guidance.

Practical relevance is hard-wired into this programme, which combines academic rigour with insight from an extensive network of faculty with industry experience. This programme provides details  of how the key players in the industry operate, the potential risks and rewards, transaction structures, and valuation and investment processes, while assessing  the ongoing prospects.

Investment is a critical part of corporate strategy, and anyone who wants to make a real impact on corporate decision-making needs to understand how the markets work. To know more about this course visit the link www.pgdsm.bsebti.com
(The author is Head of Academics, BSE Training Institute Ltd)

(Published 23 November 2011, 14:05 IST)

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