Basics of Stock trading

Stock trading is buying and selling of shares with an intent to make a profit. The stock price is determined by the market, based on the demand and supply. Creating buy order when expecting bullish stock price behavior is called long position and selling the same stock is called long unwinding. creating sell order when expecting bearish stock price behavior is called short position and buying same stock is called short unwinding. A trade plan evaluates the risks, returns, duration and targets. it is essential because without the trade plan the probability of the making profit over long period of time is very less, more over trading without a trade plan is almost equal to gambling.