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Kalyanaraman replied to the topic Why do people choose stock trading? in the forum Basics of Stock Trading 7 years, 6 months ago
People choose stock trading for earning money, provided there should be adequate knowledge about the risks involved in it.
Others participate as a long time investment option.
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Kalyanaraman replied to the topic What is long / short / long unwinding / Short Covering? in the forum Basics of Stock Trading 7 years, 6 months ago
<p style=”box-sizing: border-box; margin: 0.85em 0px; direction: ltr; color: #777777; font-family: ‘Roboto Slab’; font-size: 13px;”>Long position: placing a buy order in order to sell at lower price.</p>
<p style=”box-sizing: border-box; margin: 0.85em 0px; direction: ltr; color: #777777; font-family: ‘Roboto Slab’; font-size: 13px;”>Long…[Read more] -
Kalyanaraman replied to the topic Is it possible to buy stocks from BSE and sell it on NSE? How and what is the limitation? in the forum Basics of Stock Trading 7 years, 6 months ago
Yes it is possible to buy stocks from BSE and sell in NSE and vice versa, provided the trade is Intraday.
Limitations occur when trade is based on T+2 day where delivery of the shares happens next day. (ie without having the stocks in your account)
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Kalyanaraman replied to the topic Is it possible to buy stocks from BSE and sell it on NSE? How and what is the limitation? in the forum Basics of Stock Trading 7 years, 6 months ago
Yes it is possible to buy stocks from BSE and sell in NSE and vice versa, provided the trade is Intraday.
Limitations occur when trade is based on T+2 day where delivery of the shares happens next day.
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Kalyanaraman replied to the topic How Stock exchanges ensure the traders counter party risk? in the forum Basics of Stock Trading 7 years, 6 months ago
Stock exchange collects sufficient funds from registered brokers through which they ensure the settlements are done to avoid counter party risk.
Brokers in turn allows the trade to happen checking for sufficient funds in traders account.
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Kalyanaraman replied to the topic How much time required to do trade? in the forum Basics of Stock Trading 7 years, 6 months ago
Trade happens instantly once the bid price is matched between the buyers and seller in the exchange.
However the prior to placement of order the trader has to analyse the scrip depending upon his ability .
As a thumb rule , once a stock is picked up for favourable trading, the order shall be placed within 1 minute ascertaining the prevailing c…[Read more]
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Kalyanaraman 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 7 years, 6 months ago
Broker is an authorised member of the Stock exchange through whom orders from the traders are place to the exchange.
Exchange is the place where the actual trade takes place and exchange is responsible for the trades, clearings and settlements.
SEBI is the regulating body for all the exchanges in India and also plays the role of protecting the…[Read more]
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Kalyanaraman replied to the topic What is online trading? in the forum Basics of Stock Trading 7 years, 6 months ago
Online trading is when buying and selling of share and its related transactions & documentations happen through electronic format via internet through an Demat Account.
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Kalyanaraman replied to the topic Who decide the stock price? in the forum Basics of Stock Trading 7 years, 6 months ago
Buyers and seller decide the stock price.
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Kalyanaraman 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 7 years, 6 months ago
Even though a trader quotes a higher price, the trade will happen with best seller price offered at that current time.
ex : For Stock “A” buyer bids for rs. 520 whereas the best seller price offered is rs. 500, the deal happens at rs. 500 only.
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Kalyanaraman replied to the topic What is Trade Plan? Why it is essential in the forum Basics of Stock Trading 7 years, 6 months ago
A Trade plan shall consist of choosing the right sector and right stock for the given day and technical analysis done prior to the trading, thus identifiying when to enter and when to exit. The trade plan should have limits set when to enter / exit after profit booking in combination of stop loss limit.
Without prior trade plan one will f…[Read more]
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Kalyanaraman replied to the topic What is positional trading and Intraday trading? in the forum Basics of Stock Trading 7 years, 6 months ago
Positional trading allows us to buy or sell a stock with a holding time period of T+3 days for NSE and T+90 days for BSE.
Whereas Intraday trading allows us to buy and sell (or) vice versa on the same day of trading.
If the settlement doesnt happen on the same , the exhchange forces the broker to settlement with penalty. There is no chance of…[Read more]
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Kalyanaraman replied to the topic How to place order? Types of order? Validity of order? in the forum Basics of Stock Trading 7 years, 6 months ago
An order can be placed if one has a DEMAT account in his/her name.
The types of order for BUY OR SELL are Market or Limit order.
<span style=”text-decoration: underline;”>Market order</span> can be placed only at market operating time and the trade will be executed at the prevailing best market price
In <span style=”text-decoration: u…[Read more]
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Kalyanaraman replied to the topic Is Stock trading is gambling or Business? How? in the forum Basics of Stock Trading 7 years, 6 months ago
When trading is done with proper technical analysis, and if decisions to trade are based on logical conclusions and executed in rational basis without any sentiments, fear, anxiety or greedines , Stock trading will fall on business category. In a nutshell the calculated risk shall be lower than the expected returns.
Or else it will be a mere…[Read more]
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Kalyanaraman replied to the topic What is the difference between Trading and Analysis? in the forum Basics of Stock Trading 7 years, 6 months ago
Trading is process of buying or selling stocks depending on price movements.
Analysis is the tool or process to ascertain the price movements before trading.
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Kalyanaraman 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 7 years, 7 months ago
A share holder is one who holds share of a particular company. It implies the individual is sharing the capital, profit and asset of that particular company.
A promoter is a person who promoted the company from the base. He is not necessarily owner of the company at any current point of time. In some cases the promoter might of sold the…[Read more]
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Kalyanaraman replied to the topic Why do we need stock market? in the forum Basics of Stock Market 7 years, 7 months ago
<p style=”box-sizing: border-box; margin: 0.85em 0px; direction: ltr; color: #777777; font-family: ‘Open Sans’; font-size: 13px;”>Stock market is required where buyers and seller meet at a common place and trade their shares in a regulated and transparent manner.</p>
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Kalyanaraman replied to the topic Why do we need stock market? in the forum Basics of Stock Market 7 years, 7 months ago
Stock market is required where buyers and seller meet at a common place and trade their shares in a regulated and transparent manner.
<section class=”subsection” style=”display: block; margin: 0px 0px 35px; padding: 0px; border: 0px; outline: 0px; font-weight: inherit; font-style: inherit; font-size: 16px; font-family: inherit; vertical-align:…[Read more]
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Kalyanaraman replied to the topic What is Stock Market? in the forum Basics of Stock Market 7 years, 7 months ago
Stock market is a virtual platform where buyers and sellers meet to trade the shares.
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Kalyanaraman replied to the topic What is the difference between Investments and trading? in the forum Basics of Stock Market 7 years, 7 months ago
Investments are of mid term / long term in nature by buying and accumulating stock at low price and selling at a relatively higher price. The risk taken in investment is less when compared to trading.
Whereas Trading is buying or selling of shares or vice versa within short duration of time. The risk taken is higher when compared to inv…[Read more]
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