Stock Market Trading For Beginners

There is a saying that,  " Trend is Trader's Best Friend". What is this Trend ?  So basically trend is the phase which shows whether the particular stock price is going in the upward direction or falling in the downward direction. Sometimes stock prices neither goes upward nor falls downward. Such situation can be called as sideways market where there is a very little volume generating between buyers and seller. Trend line is a line where stock prices touches one time and then bounced back to the original direction continuing existing trend. Trend line also acts as support and resistance which we will cover in the coming blog's. In short, there are three types of market trends: Up trend ( Price goes up) Down trend ( Price falls down) Sideways trend (Flat Price movement) Take a look at following figure: In the above image you can clearly see that an Up trend means where a stock prices goes up and a Downtrend means where stock prices falls. A sideways trend is tren

  What is Fundamental Analysis ? Typically, Fundamental Analysis is used to find out whether a company is stable, solvent, liquid or profitable enough to make an investment or not.  Fundamental Analysis can help investor to choose best possible investment opportunities. Fundamental analysis study everything from the financial strength to the management of individual company. In fundamental analysis, Analyst uses different financial statements like income statement ( Profit & loss statement), Balance sheet and cash flow statement to find out whether the company is in profit or loss. Earnings, Expenses, assets and liabilities are all comes under research of fundamental analysis of a company. Technical Analysis  Technical analysis is a traditional way of analyzing companies without seeing any financial statement which shows historical price data which we can easily on the chart of particular security ( Here Security is referred as a company). Technical analysis focuses on price and vo

Discover which type of Trader you want to be Before entering into the stock market, you should identify yourself which means you should determine whether you are an investor, a day trader, a swing trader etc. If you want to trade for day and you are ready to accept the wild swings, sudden volatility and impulsive moves of the index then you can opt for day trading which is also known as Intra-Day Trading. Day trading is a risky business as it contains sharp upside or downside moves depending on the market you trade. But with proper understanding and risk management system you can excel in this too. Risk Management Risk Management means basically following a 1% rule which I strictly follow as well. So what 1 % rule tells us is that if we are day trading then we should risk only 1% of the total capital or amount that we have invested. For example let's say you have invested Rs.1,00,000. Then you must take risk of only Rs.1,000. (1% of 1,00,000 = 1,000). In this way if your trade goes

Hello Everyone...!!! Now I hope that you all have gone through the trading or the brokers website and got an overview what is stock market. Let's dig deeper into the market. Stock Market Segments  Stock market has the vast areas of investment opportunities. There are so many ways where one can invest with little amount. But you need a proper knowledge and practical experience to enhance in the stock market. So let's look into some segments : Equities (Cash Market) Derivatives Currency Commodities Forex Cryptocurrency Mutual Fund SIP All the above are the instruments in which your money gets invested directly or indirectly in the Stock market. I will not go conceptually in each segment because it has no use of knowing the definition of each topic. But I will try to explain practically which can be easily understandable. As a beginner one should try to trade with equity or cash market. Then after certain time period with the good experience you can start trading in other segments

  DEMAT - First Step To Start Trading In the last blog we have learnt about the Indian Stock exchanges, indices, sectors and their stocks. In this blog we are going to learn about how to start trading. Now a days because of the easy access to the internet and with the help of social media, 90% of people know how to start trading by opening a DEMAT account . It's a very easy process of opening a demat account. As you have to choose best broker and you just need to visit their websites. After visiting the website you just have fill out the information like name, email id and phone number form and then either the representative will call you and help you to complete the process or else you can do it by yourself. There are so many companies out there in the market with the exciting offers related to opening of demat account with their firm. Some will charge zero opening account charges and you have to pay AMC charges. (AMC - It's basically annual maintenance charges which broker co

 What is a "Stock market" or "Share Market" ? Basically, Stock Market is a place where there is buying and selling of the company shares. So, obviously it require a specific buyers and sellers to complete this transactions. Why People always Invest Money ? Everybody wants to invest their money so that they can protect themselves in the future in terms of financial crisis or something like that. Stock market is basically a type investment instrument or a product where one can invest their hard earned money to get some returns. There are various investment types where people invest their money. For example Gold, Real Estate, Bank FD, Bank RD etc. Just like all these if we invest our money in the shares of best companies we can get a significant returns. Indian Stock Market Overview  To manage or to control the buying and selling of the shares there is a requirement of an exchange which act as a regulatory system. In India, We have two exchanges. NSE (National Stock Ex

 Hello Readers, Happy to see you All. I am starting a new blog series related to stock market trading. I am having an experience of 4 plus years in stock market. I have read so many articles, I read many books as well. I have seen many youtube videos as well as video courses which are easily available online.  With All this knowledge that I have what I found is that when ever a new person wants to start trading in the market he/she will need a proper guidance for like from where to start, how trade, how to search best stocks etc. I know there are many blogs, videos and courses available on the internet about this basic terminologies of market. But you know guys what I found is that there are few resources where you can learn in easy and simplified manner. That's what this blog is about.  A simplified version to learn stock market. So here I will make this series very easy to understand. I will make sure that you will less time read this will get so much to learn. Stay tuned for nex