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Stock Market and Stock Exchange Basics - More Info to Help You Master Stock Trading
The general definition of market is somehow everybody is clear about. A market is a place where actually the transaction takes place. The transaction is nothing but the buying and selling in exchange of money. The same definition can be applied to stock market. Stock market is also nothing but the place where buying and selling transaction of stocks takes place. Whenever we are talking about that the stock market is in boom or in downturn we are basically talking about the general performance of many stock exchanges in different countries of the world like Bombay stock Exchange, NASDAQ in United States, London Stock Exchange etc. In specified term if we have to the stock exchange then it is the place where stocks are actually traded. So let us have a look at stock market and stock exchange basics - more info to help you master stock trading.
Listing in the stock market
A stock is nothing but the shares and securities of a company. To exchange stock in the share market the company has to be listed in the stock exchange. If a company is not listed in the stock exchange for that particular company their stocks cannot be traded in the stock exchange. Generally every company trades its stocks on one stock exchange only. But if the company is very large then they can trade in different stock exchanges but the company should be listed on those stock exchanges. Usually in one country itself there are several stock exchanges. For example, the country like India is having several stock exchanges like Bombay Stock Exchange, National Stock Exchange…etc. There are several stock exchanges in different countries like Tokyo stock exchange, The London stock exchange, Shanghai stock exchange etc. The trading time of different stock exchanges is almost similar. But the difference with the normal business transaction is that it is a little bit shorter.
Bull and bear market
The stock market can be used as an indicator for economic health of the country. When stock market is in high we generally termed it as the bull market. This means that the economy is in healthy position because in the bull market the inflation is low, the production is high as well as there are more employment. When the market falls that means that when the prices of the stock market is going down, then we can termed it as the bear market. Bear market shows that the economy is on a downturn. It indicates high inflation, high unemployment and low productivity. But at the same time we cannot say that the stock market condition is the real indicator for the health of the country because it is all about the psychology of the investors. When there is a demand of a particular stock is very high then more and more investor s try to join in and the prices of the stocks gone up. Again, if a number of people start to sell a stock and if the price drops, then more and more investors tries to sell the stocks before it drops more. This type of pushing and pulling can be recovered within a very short range of time. The economic health is reflected by the stock market only in the long run but not for the short term. You should have a good knowledge of the different concepts of the stock market like BSE, NSE…etc
There are some other options available in the stock market except stock such as Foreign Currency Exchange, Futures and Options Markets. It is not like that only individual investors whether small investor or big investor can invest in the stock market there are some institutional investors are there who can also invest in the stock market. Mutual Fund, Provident Fund etc. are the institutional investors who invest a bulk amount of money in the stock market. So, we have learnt about stock market and stock exchange basics - more info to help you master stock trading.
Day trading, swing trading or long term trading. How do you choose to profit?
Various types of trading exist nowadays where we can have a good amount of profit. Normally people considered long term investment or trading as the best on which gives good amount of profit, especially for those who have a deep thrust in the companies where they invest long term investment serve a good purpose. Long term investment is also the main preferences of all the company. In today’s world this kind of investment is not only the one which can give profit. The most important is people satisfaction; if they invest their money with restless and felling uncomfortable for the whole time that is not profitable in the share market. So, day trading, swing trading or long term trading. How do you choose to profit?
Short term investment
Short term can also become the good one in this market. We all know that this market is volatile and keep on changing even in a minute, short term investment can also gives profit maximum in this case. Because of the changing stock market there are some investors or traders who were afraid of losing all their investments, they don’t know what to do, they usually sells their shares this makes the market change the stock prices in the market falls and in the meantime rises to some extent which in turn can leads to some other investors happy.
Question may arise to you like why the investor sells their shares in this critical situation? Very simple, they were nervous of the stock position and could not bare longer the market position, besides it is their own wish, they can do what ever they want, they are not bound by any rules. It is necessary that you also have some knowledge about swing trading. As of history, the market never remain stagnant it changes after a short time not even a year is needed, in this time the investors who are focusing short term knows where to jump in and jump out of the market taking this as an advantages to earn and earn lots of money which even makes the other jealous of it.
There even emerge the position traders in a market. These traders focus the long term, they allowed their investment to hold in the market for long time even for years, they will wait for the company till the company make a financial report, and analyzing the company performance, regarding their selling stock as well. The stock holder doesn’t need to take a deep look at the company he invests. This is a kind of investment in which the investors has to wait a little time in the Indian stock market. Since he needs not proper analyzing the company performance but he has a lesser chance of earning much.
Swing traders are a kind of traders who usually hold stocks for very short term, but this technique is known to believe that it requires a lots of time, research about the market situation usually has to be taken a very long time per day, as of the name they usually switch over to the other
Day trading is a one kind in which high risk is taken, but people find it more profitable. People who are very expert know how to reduce the risk and earn lots of profit. There also exist some kind of software which guides them in trading; also the trading can be done by that software which requires less manpower. Besides trading is done by the whole world this is why trading occurs very fast which also gives less time for earning, which means that within a short term you can know what will be your profit. In this type of trading traders can trade the whole day i.e. 24 hours. So, what do you say about day trading, swing trading or long term trading. How do you choose to profit?
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