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Geetha replied to the topic What is Trade Plan? Why it is essential in the forum Basics of Stock Trading 8 years, 8 months ago
Trade plan is doing analysis, emotional control, set risk level and goal (risk/reward ratio), doing homework on pros and cons, set entry level, set exit level, and have excellent records. A justified win is when you create a very detailed trading plan and follow the plan. A win that results from aforementioned trading plan is justified and…[Read more]
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Geetha replied to the topic What is online trading? in the forum Basics of Stock Trading 8 years, 8 months ago
The act of trading with the help of an internet in a brokerage’s internet-based proprietary trading platforms, with reliability and transparency using a Demat Account is called Online Trading.
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Geetha replied to the topic Why do people choose stock trading? in the forum Basics of Stock Trading 8 years, 8 months ago
1. Stock trading is not a risk-free activity, and some losses are inevitable. However, choosing successful stocks and investing in the right startup companies can potentially be very profitable.
2. People also don’t need any commercial space to do online trading and can be done as a part time work.
3. When positional trading is done in a we…[Read more]
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Geetha replied to the topic Who decide the stock price? in the forum Basics of Stock Trading 8 years, 8 months ago
Depending on the demand and supply, the buyer and seller decides the stock price.
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Geetha replied to the topic What is the difference between Trading and Analysis? in the forum Basics of Stock Trading 8 years, 8 months ago
Trading: Trading is exchange of goods i.e., buying and selling of any type of commodity or shares.
Analysis: Analysis is a method of evaluating a security that entails attempting to measure its intrinsic value by examining related economic, financial and other qualitative and quantitative factors. Fundamental analysts attempt to study e…[Read more]
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Geetha replied to the topic What happens if I quote high price to buy a stock compared to its current market price? in the forum Basics of Stock Trading 8 years, 8 months ago
If I quote a higher price to buy a stock compared to its current market price, then my quote would be given priority and the shares would be executed matching the best market price.
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Geetha replied to the topic What is positional trading and Intraday trading? in the forum Basics of Stock Trading 8 years, 8 months ago
Positional trading: An approach to trading in which the trader either buys or sells contracts and holds them for an extended period of time for even years.
Intraday trading: The name “intra-day trading” refers to a trading, in which opening and closing a position in a security in the same trading day.
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Geetha replied to the topic How Stock trading take place? – Explain the role of broker/exchange/ SEBI/ Govt/ BANK? in the forum Basics of Stock Trading 8 years, 8 months ago
Most stocks are traded on exchanges, which are the places where buyers and sellers meet and decide on a price and trade.
Broker: A stock broker is an agent who represents clients to buy or sell stocks and other securities. The term is applied to both companies that deal in securities and their employees, who technically are registered…[Read more]
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Geetha replied to the topic What are the other markets? in the forum Basics of Stock Market 8 years, 8 months ago
List of markets:
1. Capital market.
2. Commodity market.
3. Derivative market.
4. Foreign Exchange market.
5. Bond market.
6. Vegetable market.
7. Auction market.
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Geetha replied to the topic What is the difference between Investments and trading? in the forum Basics of Stock Market 8 years, 8 months ago
Investing and trading are two very different methods of attempting to profit in the financial markets.
Investments: The goal of investing is to gradually build wealth over an extended period of time through buying and holding of a portfolio of stocks, baskets of stocks. Investors often enhance their profits through compounding or reinvesting a…[Read more]
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Geetha replied to the topic What is IPO? What is the process of applying for IPO? in the forum Basics of Stock Market 8 years, 8 months ago
Initial Public Offering – IPO is the first sale of stock by a private company to the public.
Process of applying for IPO:
To apply for an IPO you have to fill an IPO application form through a share broker or investment consultant, and various banks. Once you get the form, you have to fill it, remit the amount after calculating the number of…[Read more]
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Geetha replied to the topic What is the role of SEBI? in the forum Basics of Stock Market 8 years, 8 months ago
Securities Exchange Board of India (SEBI) was set up with the main purpose of keeping a check on malpractices and protect the interest of investors.
1. Issuers: For issuers, it provides a market place in which they can raise finance fairly and easily.
2. Investors: For investors, it provides protection and supply of accurate and correct inf…[Read more]
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Geetha replied to the topic What is the difference between primary market and secondary market? in the forum Basics of Stock Market 8 years, 8 months ago
Primary Capital Market: In the primary market, investors buy securities directly from the company issuing them.
Secondary Capital Market: In the secondary market, investors trade securities among themselves and the company with the security being traded does not participate in the transaction.
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Geetha replied to the topic Why do we need stock market? in the forum Basics of Stock Market 8 years, 8 months ago
The primary purpose of a stock market is to provide a structured and regulated exchange where investors can safely buy and sell shares of stock in a public corporation and where company owners can acquire equity investment.
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Geetha replied to the topic Can share holder has right to ask for refund / can he ask for dividends? in the forum Basics of Stock Market 8 years, 8 months ago
Shareholders have no rights to ask for refund. He can only sell the shares as per his wish.
Shareholder cannot demand for any dividends by himself, but if the dividends are allotted by the company to the shareholders, he has the right to claim the dividends.
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Geetha replied to the topic Who are share holder, promoter, and director? What is the role and rights of them? in the forum Basics of Stock Market 8 years, 8 months ago
Shareholder: An individual or institution who legally owns a share of stock in a public or private corporation. The shareholder has the right to vote on major issues, ownership in a portion, the right to transfer ownership, entitling the dividends, and inspect annual report.
Promoter: A corporate promoter is a person who solicits public to…[Read more]
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Geetha replied to the topic What is DEMAT a/c? in the forum Basics of Stock Market 8 years, 8 months ago
Dematerialized Account is shortly called as Demat Account. In India, all shares and securities are kept in a dematerialized account without any physical possession of certificates of the shares or securities. A Demat account is opened while registering with a broker or sub-broker by the investor for trading. Demat account is a convenient way to…[Read more]
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Geetha replied to the topic How come NSE become popular than BSE? in the forum Basics of Stock Market 8 years, 8 months ago
Though BSE was older than NSE, there was no transparency in trading in BSE then, and Indian Investors were eagerly waiting for a good opportunity. At that time, NSE came with electronic trading in India. Obviously traders’ attention turned towards NSE. NSE reformed and revolutionized the markets with futures and derivatives. It was the first In…[Read more]
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Geetha replied to the topic What is Stock Market? in the forum Basics of Stock Market 8 years, 8 months ago
Stock market or equity market is a network where a group of buyers and sellers of stocks (shares) meet.
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Geetha became a registered member 8 years, 8 months ago