It’s good that you are going to learn and want more money through Stock Trading. There are many users who want to be a successful trader but due to less (fundamentals and technical) knowledge and patience they lose their hard earned money.
Here we will try to make you learn on what is stock and how to trade in stock, with some fundamentals concept.
What is Stock?
A public company is represented by a stock that is traded on an exchange. These companies may be Tata, Reliance and Infosys to some smaller companies that may be you have not ever heard of. If you are going to buy a stock that means you are buying share within that company. Then you become a part owner of that company (ex; 40 Crore (400million) available shares are on Reliance and you buy 100 then you own 0.000025% of that company). Each share consist of some price
What is Trading?
As we talk about trading in the financial market, Trading is an action or activity that designed for earn or achieve profitable return in long term and short term in markets.
There are many resource are available to help you learn about stock trading and stock market in general. Top Sources are-
1–Investopedia– Great source provides full definitions and explanations of stock related terms.
2–Marketwatch– Interesting platform where you can have a free stock market game which allows you trade in stocks with fake money.
3–ChartGame-Valuable website that helps you learn how to read charts to understand when to Buy/Sell/Short
How to start trading in stocks?
Before start trading in stocks you need to open a stock broker account. This account is just like a bank account that permits you to buy and sell stocks and derivatives with the capital you feed on that account. In India examples of brokerages are – Zerodha, ShareKhan, Angel Broking, RKSV and many more are available where you can open your account.
One of the most important and valuable source available among all. Books serve you a wealth of information and comparatively cheap to the coasts of classes, seminar and DVDs available across the web.
You can see and read informative blogs and articles posted by experienced Investors/Traders or leading firm that frequently upload post about share/stock market with their valuable suggestions and recommendations.
If you have become MASTERED the basics….
It’s time to congrats yourself that you have become mastered the basics and completely ready to enter in the world of trading or investing in share/stock market. Now you need to start;
Learn Fundamental Analysis
If you want to be a long-term investor, fundamental analysis is essential and helpful to grow you up. It helps you to understand about the progress and future potential of the company so that you will be allow to determine to invest your hard earned capital on that company. You must need to do some things like read balance sheet, observe last earning reports etc.
Learn Technical Analysis
Now it’s time to learn technical analysis. It takes completely different approach; it does not say about the value of company or a commodity but the information about the price movements in the market (by seeing charts).
In technical analysis you learn and understand basic indicators like moving averages (MA), relative strength indicators (RSI), on balance volume (OBV), support and resistance lines etc.
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