Many people think
trading is the simplest way of making money in the stock market but they are
completely wrong. To earn profit in stock market is very difficult for new
investors or beginner because they don’t understand the market phase or market
type. If anyone want to do trade in stock market then few thing are very
essential for new investor which is
- What is Stock market…???
- Type of stock market
- Difference between share and stock etc etc
Stock market
Stock
market is a place where the share of companies are bought and sold or we can
say that Stock market is a virtual exchange of securities like as share and
debenture of companies. Stock market is a word that cannot be readily in a
sentence. To well understand market you should have a lot of experience. If you
want to earn money from this market then don’t invest your money without
knowledge taking Stock Tips
is helpful for you to earn money.
In
India, there are two stock exchanges:
- National Stock Exchange (NSE)
- Bombay Stock Exchange (BSE)
Bombay Stock Exchange
The Bombay/Mumbai Stock Exchange is India's
oldest. Also known as BSE, it was established in 1875 and includes more than
6,000 stocks. The BSE is the largest stock exchange in South Asia and is
rapidly becoming one of the biggest in the world due to India's economic
growth. The most commonly watched BSE index is called the sensitive index, or
Sensex, of 30 large stocks.
National Stock Exchange
The National
Stock Exchange, also located in Bombay/Mumbai, is India's other dominant stock
market along with the BSE. The rapidly growing exchange was founded in 1992.
The NSE and BSE are responsible for the vast majority of trading volume in
India. The NSE's best-known index is the S&P CNX Nifty, which comprises the
stocks of 50 large companies.
How To Invest In Stock Market
To invest in
stock market, Demat account is essential. You can open your trading account
with an authorized broker. After opening of your account you have allotted a
certain client code, which you can use every transaction.
Strategy to earn profit in stock market
1.
First
strategy is if you would like to save your money then you must go for online
stock trading.
2.
Second
is buy high quality stocks, calculate its intrinsic value and buy within its
margin of safety.
3.
To
maximize profit, you need to know where the market forces will be. You can
estimate its movement from technical analysis and some economic indicators.
4.
Watch
each and every moments of the market and try to understand the actual condition
of the market.
5.
When
you are thinking of to investing in the market then you need to go for a
professional broker or consultant and also get some stock tips based on BSE
and NSE take advice. Because they have a lot of experience about the market and
they also know when market will be up or down.
6.
Before
investment make your own strategy about your budget then go in the right
direction.
7.
Never
invest any more money than you can afford to lose.
8.
Trade
volume is important to be aware of when you are deciding whether or not to buy
it.
9.
Do
not trade during the first half-hour of the session. Most experienced traders
simply watch the markets for the first half of the day because they try to
understand the market condition and then start investment.
11.
It
is important to know what phase the market is in trending and trading phase. In
a trending phase, you go and buy/sell breakouts, but in a trading phase you buy
weakness and sell strength.
