Learn NEPSE Investing

Learn how the Nepal stock market works: shares, IPOs, fundamentals, technical analysis and portfolio building. Free chapters on NepView.

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Why This Book Exists. Two questions, and the difference between them.
Contents. The whole book, at a glance.

The Basics

What is a Share. Owning a slice of a real business.
Fundamentals and Charts. Two questions, not two camps.
Revenue and Profit. Topline, bottomline, and what's between.
Market Capitalisation. What the whole company is priced at.
Face Value, Bonus, Splits. Par value and share-count changes.
Shareholding and Float. Who owns the company, and how much trades.
52-week High and Low. The trading range over a year.

The Ratios

P/E Ratio. Price paid per rupee of earnings.
Earnings Per Share (EPS). Profit sliced per share.
Book Value and P/B. Net worth per share.
Price-to-sales (P/S). Price per rupee of revenue.
PEG Ratio. P/E adjusted for growth.
Return on Equity (ROE). Profit from owners' money.
Return on Assets (ROA). Profit from everything it owns.
Return on Capital Employed. Profit from all long-term capital.
Profit Margins. How much of each sale becomes profit.
Dividend Yield. Cash returned per rupee invested.
Dividend Payout Ratio. How much profit is paid out.
Current and Quick Ratios. Can it pay its short-term bills?
Interest Coverage. Can it comfortably pay its interest?
Debt-to-equity. How much the company borrows.
Asset Turnover. Sales generated per rupee of assets.

Banks

Why Banks Are Different. Reading a bank is its own skill.
Net Interest Margin (NIM). The bank's core spread.
CASA Ratio. How cheap the bank's funding is.
Non-performing Loans (NPL). Loans that aren't being repaid.
Capital Adequacy (CAR). The bank's safety cushion.
Cost-to-income. How efficiently the bank runs.

The Statements

How to Read a P&L. From topline to bottomline.
How to Read Quarterly Results. Momentum and seasonality.
How to Read a Balance Sheet. What it owns and owes.
How to Read Cash Flow. The profit you can actually bank.

The Annual Report

The Annual Report, in Order. How a professional reads it top to bottom.
The Auditor's Report. The gatekeeper of trust.
Audit Opinions. Clean, qualified, adverse, disclaimer.
Accounting Policies and Notes. Where the numbers are really made.
Balance Sheet — Assets. Everything the company owns, line by line.
Balance Sheet — Liabilities and Equity. What it owes, and what owners hold.
P&L — Line by Line. From revenue to net profit, every step.
Cash Flow — Line by Line. Turning profit into real cash.
Connecting the Three Statements. How BS, P&L, and CFS lock together.
Red Flags Professionals Watch. Where the numbers quietly lie.

Valuation

Enterprise Value. The true cost to buy a business.
Valuation and DCF. What a business is fundamentally worth.
Economic Moats. What protects a company's profits.
Cyclical vs Defensive. How the economy moves a business.
Interest Rates and Stocks. Why rates move the whole market.
Putting It Together. Reading a company as a whole.
Common Traps. Where ratios mislead.
A Note on Judgment. What the numbers can and can't do.

Charts

What Technical Analysis Is For. Fundamentals pick the business. Technicals pick the moment.
The Anatomy of a Candle. Four numbers, one picture.
Single-Candle Signals. Doji, hammer, shooting star, marubozu.
Multi-Candle Patterns. Engulfing, harami, stars, three soldiers.
Volume, the Confirmation. How much conviction was behind the move.
Support and Resistance. Prices the market remembers.
Trend and Trendlines. Higher highs, lower lows.
Breakouts and Fakeouts. The move that matters, and the one that traps you.
Chart Patterns. Head and shoulders, triangles, flags.
Gaps. When price skips a price.
Timeframes. The same chart says different things at different scales.
Moving Averages. Smoothing the noise to see the drift.
Moving Average Crossovers. Fast crossing slow.
MACD. The gap between two averages, plotted.
RSI. How stretched the recent move is.
Stochastic Oscillator. Where the close sits within the recent range.
Bollinger Bands. Volatility drawn around the average.
ATR. How far this thing typically moves.
ADX. Is there a trend at all?
Supertrend and Parabolic SAR. Trailing lines that flip.
Ichimoku Cloud. Trend, support, and momentum in one picture.
On-Balance Volume. Volume with a direction attached.
VWAP. The average price everyone actually paid.
The Rest of the Toolbox. The indicators you will meet, briefly.
Confluence. When several things point the same way.
Entries and Exits. Where the whole thing is supposed to pay off.
Risk and Position Size. The part that decides whether you survive.
What Technical Analysis Cannot Do. The honest chapter.