New Stock Trading Idea and Strategies

Remember, a general question comes in every investors mind - firstly, which stock to buy now, because there are thousands of stocks available in the stock market. Is just like a game between of winning and losing. Stock Trading is the very good platform for the all investor's.

If you want to become a good trader, or before invest your money.. read carefully some information and follow them -

Stock market - the stock market is the place, where stocks are bought and sold. In this place where stocks and derivatives at an agreed price.

Stock and Share - stock and share both are the terms refer to the share in the ownership of the company. But it refers to the ownership in one or more companies, but he says that he owns shares, It means he is referring to a particular company's stock.

Stock exchange - It is a facilitates trading for brokers and traders. A broker always acts as a mediator between an exchange and a trader.

Bull- The investors or trader, who buys shares in the more expectation that the Market price of the company's share will increase.

Bull market- When the share market is rising and investor's are more than the sellers.

Closing price- last trading price of a security, at end of trading day.

Intraday Trading or Day Trading - Day trading is a good short term method to earn profit in the short time period, but it is not easy for a regular basis.

Traders, who think that the price of security rise up, go for long, or the price will drop and then one will buy back it at cheaper rate, go to short.

There is some trading strategy, read and follow them-

• How to avoid loss in the stock market?

• How to evaluate management?

• Valuation - It matters much

• When to buy and when to sell

• The First step of picking winning stocks

• Is it required to follow an equity advisor?

• Do's and don't avoid loss in the stock market

• How to construct your portfolio?

It's a very difficult task to become a good trader, without guidelines, first of all see the past performance of the stock market, you can prefer candlestick chart to see the past performance.

Keep in mind, that's how you are investing and in which share, do not invest all your money into a single share.

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Financial Stocks

As long as there have been companies and money to be made there have been stocks. What are they? Well, they are something that represents ownership in a company, if you have stock in lets say, a major beverage company then you own a little bit (or a lot, depending on the number of them you have) of that company. This means that you can help elect members of the board and vote on corporate policy because you are an owner.

Companies that can offer stocks have to be public companies, that means that anyone with the money and the know how can purchase the stock, but not just any company can instantly arrive on the world markets as there is a process and of course many listing requirements that have to be met. That being said, there are ways of smaller companies trading stock and that is trading 'over-the-counter' which is what happens when unlisted (companies not on the official stock exchange) have stocks to buy, sell and trade.

The first ever stock for sale was established by the Dutch East India Company back in 1602. Today there are thousands of them exchanged, with the largest of them all being part of the New York Stock Exchange or the NASDAQ. There are of course other major trading centers around the world, most notably the London Stock Exchange and the Japan Stock Exchange.

Stocks generally outperform bonds and although they are both considered securities they do have their own strengths and weaknesses. A bond is something you buy for the long term, maybe up to fifty years, but stocks exchange hands all the time, sometimes many times a day. The idea is to buy when the price of them is low and then sell them when the price is high. This can change throughout a day, so you may make money and lose money several times during the hours the Exchange is open.

A downside to them is that if the company that issued them goes bankrupt, you'll have to wait in line for any reimbursement. The company creditors get first crack at any money and as a stockholder you are far down the line.

Like with any investment, there are ups and downs, pros and cons associated with being a stockholder in a company. Some will keep shares for hours while others will sit on them for years, it's all in what you hope to achieve in the long run.

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All About Share Market Trading

What are shares?

It's a means to own a company.

The definition of 'Securities' as per the Securities Contracts Regulation Act (SCRA), 1956, includes instruments such as shares, bonds, stocks or other marketable securities of similar nature in or of any incorporate company or body corporate, government securities, derivatives of securities, units of collective investment scheme, interest and rights in securities, security receipt or any other instruments so declared by the Central Government.

What is Share Trading?

Shares trading refer to buying and selling of company shares - or any derivative products based on company stock - with the motive of profit earning.

Prerequisites for Share Trading

• We need to have DP(DEPOSITORY PARTICIPANT) account.

• We need to have a Trading account

• And of course money

How Trading Happens?

Companies get themselves listed on popular stock exchanges like NSE, BSE

Interested traders using terminal provided by their brokers trade on those shares.

Online Trading participants

• Investor- Participates through website of brokerage using internet and computer.

• Brokers- they contact each other through trading terminals and they also find who is interested to buy or sell shares.

• Stock exchange- It facilitates transactions through its servers. Most dominant stock exchange in India are NSE and BSE

• Registrar of Company-It is a government body that maintains records of all shareholders and updates database changes whenever ownership changes.

• Depositories- It includes depository participants which stores shares in electronic format.

• SEBI (Securities Exchange Board of India)- SEBI is a government body which regulates financial markets and looks into Investor complaints against companies.

Kinds of Trading

Intraday trading

Delivery based trading

Intraday Trading

Intraday trading includes buying and selling of stocks within the same trading day. The stocks purchased in this kind of trading, are not purchased with an intention to invest, but for the purpose of earning profits by analysing the movement of stock indices.

Deliver based Trading

Delivery based trading means buying shares and holding them for certain period of time is called delivery based trading.

In this method you have to place your buying request through your broker and pay for the current price of the stock. Once your request is executed the stocks that you have bought are deposited to your DP account. In this process you have to pay the full amount of the stock price. Once the stocks are deposited to your account you can then sell the stocks or hold them for as long as you want.

The delivery based trading at the cash segment is the simplest way of trading and the risk is comparatively lower.

The biggest advantage of delivery based trading is that you do not have any time limit for selling the stocks. But the disadvantage of delivery based trading is that you have to pay for full price of the stock and the brokerage is higher than other forms of investments.

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