People choose stock trading because it offers buyers and seller ability to derive risk and reward stock price decided by buyers and sellers because lot of buyers and sellers competing in one particular que this is called stock window more risk compare to reward is Gambling
more returns compare to risk is business understanding the risk and reward and and it is essential for more reward compare to risk brokers act as the bridge between the buyers and sellers and orders are taken to stock market only through brokers and responsible for the clients and do settlements
SEBI-helps to promote transparency and existence wanted to buy a share by informing the broker to buy a particular share and that is called order
Types of Order
– Long , Short, intraday, delivery, Long – Buying a particular share for a lower price and holding it and sell it when price gets high
short – selling a share when the price is High and buy it back when the price is low
, , Basics of Stock Trading, business or gambling, risk and reward, Role of stock broker and SEBI, types of trading
Hi,
Please find below the response to your queries
Your Question 1 :: what is Exactly the Trading Plan ?
A trading plan is a roadmap for how to trade, when, and how to buy; when and how to exit positions for both profitable and unprofitable.
Your Question 2 :: Does Stock price affect the Monetary aspect of the company
The company gets the money during IPO and price changes of a stock affect only the buyers and sellers of the stock. so, the stock price may not impact the performance of the company, but the performance of the company may influence the stock price.
Hence the stock price is driven by company performance and the company does not affect by the buying and selling the shares. However, the share price may have an indirect impact on the company performance, for example, a declining share price will make it hard to get a loan, can’t attract further investors, difficult to build partnerships, goodwill etc…
Thank you for your reply sir ,