Stock Market Segments

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 as mentioned above.

But mainly people trades in Equity market and Derivatives market only. So we will know about these two segments only.

For beginners I suggest to start trading in equity market as it is less risky and need less amount of money than derivatives. Basically In equity market you can buy 1 share or 100 shares of a company according to your capital which comes in a less risk in terms of loss.

Derivatives segment have two more types i.e. Futures & Options. This segment is quite risky for beginner traders as we have to trade on lots. Lot means a specified number of shares.A company can have lot size of 50, 100, 500 shares as well as 1000 shares or more. That is why there is a risk while trading this segment.

But as you grow your knowledge and experience you can earn immense amount of money.

I know all of you have seen profit screenshots of  50 lac to 1Cr on many social media platforms. All those traders trades in derivatives probably in Index options. I can say that out these only 5 % percent are real or profitable traders while others are just looting peoples by showing lacs and crores of profit to attract to make people buy their products.

One of the most shocking fact that I came to know few months ago is that all that profit statement can be edited with help of editors or software. One can not differ in between what is fake or what is real.

So you can tell your friends that you are a CROREPATI. Just edit your profit.

That's all for this blog. see you in the next one.

Comments

Post a Comment

Popular posts from this blog

Volume Analysis

Image
Volume Volume is defined as the number of shares, or contracts traded, whether for a stock or an index. Volume can be seen on an hourly time frame, a day, a week, a month, etc. The analysis of volume is a basic and very important element of technical analysis. The intensity and strength of a given price move can be judged by studying volume. The greater the volume the more active that stock is. As in the figure below of Reliance stock, the volume bars are usually plotted at the bottom of any chart represent the volume of trading.   The Importance of Volume Volume and Trends combination In technical analysis volume is used for both confirming trends and also for confirming chart patterns.Volume is an important indicator for analyzing the strength of a move. For example, if an up or down move is accompanied by high volume, the move can be said as a strong move. As we have seen in the previous chart patterns blog's, during the consolidation period the volume is usually null or very l
Read more

DEMAT Account & Brokers

  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
Read more

Four Phases of Market

Image
Important Phases of Market  Hello Everyone...!! This Blog is going to be a very important one. Generally, Stock market is a cycle of 4 periods. We can compare this to the seasons of the nature like Summer then Rainy season and after that the Winter season.  Exactly in the same way there is an Accumulation, Rally, Distribution and finally Decline in the stock market. Let's understand this on the following figure: Phase 1 : Accumulation Major moves on the upside starts with the process of accumulation. This phase is powered by a Big player i.e. Big investors who realize that the market has good scope to rise further in the near future. So they starts building their positions and wait for the up move. Phase 2 : Rally / Uptrend Next is a rally phase. in this phase technical traders takes participation. The large scale participation results in the rise of prices. Media and news channels are also buzzed with the good news about the stock on market which attracts more traders to buy the
Read more