Hello, friends welcome to this new blog, today I will tell you what is etf?
How can you earn money by learning ETF
etf full form :- (Effluent Treatment Plan or Exchange-Traded Product)
Today in this blog I am going to tell you the advanced technique and advanced thing of ETF, by which you can also earn money daily. For this you will have to read the entire blog and understand how it happens and what is ETF? Look, I will teach from basic to a little advanced, so sit with a lot of patience and read this blog carefully and understand the things of finance. Look, the most important thing that you have to understand is what are ETFs? Look, nowadays many children have come to know what is ETF, but still there are many people who are unaware about ETF.
what is etf
Look, ETF means Exchange Traded Fund, such funds which you can trade on the exchange. Now look, people also take mutual funds or index funds. But what happens is that you can buy them at your own price or not. It depends on the NV that what will be the NV of that day and according to that you get that position and if you are a little late then you will get according to the position formed the next day. Whatever price is formed, you will get it according to that. But what happens in ETF? You can buy at whatever price is prevailing. These are traded on the exchange. Now see its examples. Look, either it can be a group of stocks. It can be a group of stocks. What does it mean? Like Nifty 50, you know who has created a group of the best 50 companies of the country? NSE. What has it been called? It has been created as an index. It is called Nifty 50. So its ETF is present in the market. Many companies have its ETFs. But here in Nipon India the volume is good. We are not promoting it. I am just telling you that the volume is good in this. So you can look for its ETF. Okay? Similarly, there can be an ETF of Bank Nifty. Well, these ETFs have names.
What happens is that Nifty 50 became Nifty, this became Bank Nifty. Now their names are different. Like its name is Nifty Bees (Nippon India), Nifty IT- this is of IT so IT Bees. You can make your own list. How will you make it? I will teach you now. Don’t worry. Don’t take tension. Now what is the most important thing in this? These are groups of shares. Meaning, what is inside it? Is there one share? Is there one company? No. There are groups of different companies. Look, you have to understand what these groups are. The simple thing is that Nifty 50 is 50 companies. So if these 50 companies perform well, then the ETF will go up or the index will go up. If it performs poorly, then the market will go down or this index will go down. It is a simple thing. When will it go down? When it performs poorly. When will it perform well? When it goes up. The thing you need to understand is that this is Nifty 50. These are the top 50 companies of the country. Now will they perform well in the long run or not?
If the country has to progress, the country has to move forward, has to grow, then these will perform well, right? So if they do, then these will also go up. There is no problem at all. So you have to understand this. So this is an example. There are other groups of stocks like this. There are pharma, momentum. After this, there are mid caps, small caps. Now I will tell you how to find them. Okay? After this you have to understand that there are individuals as well. Like gold and silver. Now there is no group in this. Bhaiya, if gold goes up, then the gold ETF will also go up. If silver goes up, then the silver ETF will also go up. So you can trade ETFs within this as well. So what is ETF? Exchange Traded Funds which you can trade on the exchange. Some are grouped. Some are ungrouped. Like silver and gold. These are ungrouped. They are everything in themselves. So you can trade these as well. Now the second thing you have to understand is what can be the types of trades in this? See, a person can do two types of trades in this. Today I will focus a little more on intraday. Okay? I will tell you about long term.
But I will focus on intraday. So in this you can either do intraday. It is a simple thing. Buy today, sell today. What does intraday mean? Understand it first. See, intraday means that if you have created a position today, then you have to exit it before 3:30 today.
Now what is the interesting thing about intraday? The interesting thing is that in intraday you can buy it, make profit and if you think that this thing can also fall down then what can you do? You can also sell it. See here, there is also a selling option if you want to do it in intraday. But what is the other option we have? The second option is that we can buy it and keep it for long term. Just like you buy and keep the stock, what can you do in the same way?
You can buy any ETF for a long term. How does it happen? It is simple. What do you have to do? For example, suppose I want to buy this Nifty 50 ETF for a long term. So here it will be written Overnight under the header. You need to go to Overnight. What do many children do? They make a mistake. Do you see that they want to buy frequently. So they want to buy Overnight for a long term. But they do not click on it. Here their click is on Intraday only. So by clicking on Overnight, you can buy whatever quantity you want and here you will see all the things like how much charge will be levied and then you can buy. Now I will explain the main thing that you have to understand. Look, if a person wants to do daily intraday or even for long term, then there are five-six points which you have to pay special attention to. If you are doing ETF. Otherwise, you may face problems. Understand this also. How? Which points do you need to understand? Look, I have made a checklist of five points. If you remember these five points, it will be a lot of fun.
What is the first point? Choose your ETF. What does it mean? Is every ETF good? Can we trade in every ETF? No, it is not like that, Bhaiya. ETFs can be good or bad. Some ETFs had volume, some did not. How will you identify? So look, I will put the NTF website on your screen here. And here I will tell you how to select the best ETF. So you have to go to the NTF website. Go to ETF and see here, go to the volume section and select all the top ETFs that have volume. You will also see how many people are trading in it right now. Meaning how much volume is there in it. Okay? So this is the most important thing to see. What do you have to do first? Choose your ETF. It means you have to trade in Nifty. Meaning you have to trade in Nifty, Bank, IT, Mid Cap, Small Cap. All this is your responsibility. Our job is to just tell. We don’t give trades. We don’t give calls or puts but we teach. So if you want to do it then what do you have to choose responsibly first?
Your ETF, which one should I trade in intraday or which one? I want to trade for long term. So the first thing you have to do is choose your ETF. Okay? Now let’s assume that I have chosen it for example. This is an example. Okay? Don’t take it too seriously. Suppose I have chosen NIFTY 50’s ETF i.e. NIFTY BEES for intraday or long term. Okay? Now understand the game. The second thing I will select is to check its volatility or volume, whether there is volatility in it or not? Are people buying and selling or not? Or are there only a few people or there are lakhs of people in it. There are crores of people. I have to check this. How will I check it? Look here. I will put it on the screen in front of you right here. You can also see the low volume ones here by clicking here and you can also find the high volume ones which have high volume. So tell me in which one you are seeing the top volume by commenting in the comment box. All these ETFs have come according to the volume. So you feel you want to invest in gold, it has good volume, you can invest in it. You feel you want to invest in silver, you can invest in it. You feel you want to invest in something with momentum, you can invest in it. You feel you want to invest in Nifty 50, you can invest in it.
So the second most important thing is very important. Volatility or volume is very important. Because if you have bought it, then the problem is that suppose there is an ETF which does not have volume. You have bought it and you want to sell it, it is making profit. If there is no one to buy it, then how will you sell it? For this, it is very important to have volume. It is very important to have volatility in it. You will have to understand this thing. Okay?
The third step is very important. You should know how to see the trend and you should know how to place levels. Suppose you are doing intraday or long term. What should you know in both cases? That brother, now whether you are doing intraday or you are doing it for long term, so let us do one thing. Let us try to tell you as an example. You should know in both the time frames what are up trends? In this way, the trend that is going on is an up trend. So what are up trends? What are the supports here? What are the breakouts here? If the down trend is going on then you should know in big time frames as well as in small time frames. You should know what are breakdowns? So whether you are doing intraday or long term.
The third and most important thing is that you must know the trend. You should know what the trends are. If there is an up trend then I will buy, you should know where I will buy. If it is in a downtrend, I should know where I will sell it. It is important to know whether I should do intraday or hold a position for a long time. So you have to understand and learn these small things very carefully. So what do you have to know? You have to know the trend. Okay? And marks level will be the mark that now you should know how to mark the level. You should know how the level is marked.
So now understand the fourth and most important thing about margin, you should also know the game of margin which is available in intraday. Earlier margin was available in option futures also but now it is not available. So understand that you should also understand the game of margin. See what is it? Suppose you are trading in Nifty Bees. Okay? You are trading in Nifty Bees in intraday. When you press the button of buy or sell. What will happen after this? Two options will come. Either you want to do intraday or you want to keep it overnight i.e. long term. Now here the simple thing you have to understand is that you should know that margin is available here. And how much margin is available here? The margin available is 5x. On some platforms, 4x margin is available. On some, 5x margin is available. So you will have to understand about this margin also.
If you want to use this margin, then now look here you have to understand that here you also get margin. What is this margin brother? Margin means that whatever amount of money you are going to invest, whatever margin you get, that much times less money you will get. Look, for example, I will explain everything. Here if you see Nifty Bees, that is, the ETF of Nifty 50, is worth ₹ 360. If you want to buy an ETF, then it will cost you ₹ 360. But if I want to buy this same ETF in intraday. So the price change will be seen in intraday. Meaning, the thing which is worth ₹ 360 is available to me for just ₹ 72. What does this mean? Why is it available for ₹ 72 in intraday? Because I have got margin here and many people also trade using margin. But there is a little risk in this, the next point that I am going to tell you is that stop loss and target should be mentioned accordingly because the margin money has been used to take the trade but that money is not yours. The company has given you the margin, so you should take the quantity accordingly and you should also take the risk accordingly. You have to pay a lot of attention to this point. So understand what is the last most important thing? You should have your own setup in which you should know about SL and you should also know what target you will take. And fix the SL. Whenever you do intraday or this type of trading, you should not do it without stop loss.
The most important advice for you people will be that whenever you want to trade, you should use long term i.e. overnight instead of intraday so that when you hold a position for a long time, you get profit in it. I hope you have understood these things that how you can trade in ETF in intraday and long term and you can earn a lot of money from here. If you learn even a little well, then gradually many changes can come in your life from ETF. If you liked this blog, all your friends or family members who do trading do not know about it, then definitely tell about it, share it. You keep getting such financially good information. See you again in the next blog. Till then thank you all.