Glance of stock trading

Now a days buyers and sellers can directly participate in stock trading through network platform made available by brokers and stock exchanges. After execution of order, responsibility of settlement of trade lies with stock exchanges. SEBI is governing authority on all market participants to protect the interest of the investor. Stock trading is short term investment drive where people enter into trade and closes the position within a month or so. There are 3 types of orders ie market order, limit order and stop loss order. In order to conduct trading as business need to focus on risk and reward ratio to differentiate it from gambling. Trade plan is required to be executed with knowledge and discipline. Stock price is decided by demand and supply forces in stock market. Stock price affect market net worth of the company.