Stock Trading is a profitable buisness as many thinks, when you analyze it knowledge and Discipline and updated with the current market .Always be calculative about the Risk and Reward, dont always think it will bring you only profitkeep your mind on negative prespective also. Its either profit/Loss as Trading/Gambling depends on your approach and movement of the market. beware when to go for positional and intraday Trading

  • : Exchange is the place where the buying and selling takes place. The traders are connected to Exchange through certified brokers. During the trading, the trader place the buy/sell order using brokers online trading software.
  • : All the traders are connected to exchange only through certified brokers. And it is brokers responsibility to check that the orders are placed with proper depts in traders’s account. Exchange will take from brokers deposit if any misplaced orders from their client, to solve the settlement with counter party.
  • : People choose stock trading because they think making money is much easier and they do think and its more comfort doing it in home.Yes we can make a profitable buisness with proper analysis , knowledge and a way moves with the current market or else it will end up in a great loss which makes you to lose the invested money also.
  • : Yes. We can buy in BSE and sell in NSE or vise verse, If the company is listed in both Exchange. Not possible for intraday.
  • : Even if we quote higher price the exchange will consider that we are ready to pay up to the quoted price and gets the order executed at the current market price.
  • : The order needs to be placed using DEMAT account with the details on the share price, quantity and buy /sell order. This will be routed to exchange through broker. The order can Limit Order(Executed when the meets the mentioned price), Market Order( Executed at the market Price) and Stop Loss Order(Executed when reached the mentioned threshold value) The order will be valid until 3.30PM of the trading day and all the remaining orders will get cancelled after that.
  • : Long – Buying a share first and then selling the same is long position Short – Selling the share first and then buying is Short position Long Unwinding – Selling the shares to exit long position is long unwinding position Short Covering – Buying shares to exit short position is short covering position Based on analysis if share price is expected to go up then long position should be created (buy and sell), if share price is expected to go down then short position should be created (sell and buy)
  • : Stock market is trading when the Reward is greater then the risk taken, it becomes Gambling when the risk is much greater then the reward.
  • : Supply and demand in the market determine stock price. Market value is determined by the buyer and seller.
  • : Holding the share for a long time more then a week or month is Positional Trading. Buy/sell or sell/buy happens within a day means intraday trading.
  • : Expectation of price decline makes one to sell before they buy the share. If price goes down he buys and makes profit or else he looses.
  • : Trade Plan is to define which stocks needs to brought/sold, which instrument to be used, what is the margin( to understand the risk) and when to exit. It is essential to understand and minimize the risk and monitor the market movement to the plan to determine the exit.
  • : the stock price does not affect the company from financial aspect but it reflects the company performance if the company does not perform well it will reflect in the stock price
1 Comment
  1. vignesh 4 years ago

    Hi,
    your answers are brief and appropriate, will be useful to recall.

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