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Madhan replied to the topic Who decide the stock price? in the forum Basics of Stock Trading 8 years ago
In Primary market, the stock price is decided by the company.
Whereas in secondary market, the stock price will always be decided between the buyers and sellers depending on the demand and supply.
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Madhan replied to the topic What is online trading? in the forum Basics of Stock Trading 8 years ago
Online trading involves usage of specific tools or softwares built for the purpose of buying and selling shares through internet.
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Madhan replied to the topic How Stock exchanges ensure the traders counter party risk? in the forum Basics of Stock Trading 8 years ago
Each and every broker will have a caution deposit paid to the stock exchanges.
This amount ensures the counter party risk.
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Madhan 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 8 years ago
Yes it is possible to buy stocks from BSE and sell it on NSE.
But the shares of the corresponding company must be listed in both the exchanges.
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Madhan replied to the topic Is Stock trading is gambling or Business? How? in the forum Basics of Stock Trading 8 years ago
Stock trading will be gambling when we trade without considering the risk and return ratio. (Risks > Returns)
It will become business when we consider the returns and risks and then trade. (<span style=”line-height: 1.5;”>Risks < Returns</span><span style=”line-height: 1.5;”>)</span>
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Madhan replied to the topic How to place order? Types of order? Validity of order? in the forum Basics of Stock Trading 8 years ago
Order can be placed by just biding the stock price to be bough or sold and executing it.
Types of order are :
1. Buy Order
2. Sell Order
Validity of the order depends on the trading,
For intraday trading – validity is one day (9:30am to 3:30pm)
For positional trading – few day to few weeks/months
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Madhan replied to the topic Why do people choose stock trading? in the forum Basics of Stock Trading 8 years ago
Stock trading involves trading within a few days which yields money in a short span of time compared to investments which generally yields profit over long period.
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Madhan replied to the topic How much time required to do trade? in the forum Basics of Stock Trading 8 years ago
Trading does not depend on the time but on the final share price that is agreed between the buyers and sellers in the market at present.
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Madhan replied to the topic What is the difference between Trading and Analysis? in the forum Basics of Stock Trading 8 years ago
The main difference between trading and analysis are:
1. Trading just involves buying/sharing trades but analysis involves detailed study about the shares, company and market
2. Trading involves executing deals, but analysis involves learning market behavior and finding the chances of share prices going up or down.
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Madhan 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 ago
When a bid price higher than the current market price is quoted, then it will be considered first and given top priority to buy the share.
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Madhan replied to the topic What is positional trading and Intraday trading? in the forum Basics of Stock Trading 8 years ago
Intraday trading involves trading within a day – buy/sell shares within a day or daily market timing.
Positional trading normally involves trading for more than a day – buy shares hold it for duration of more than a day and then sell it.
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Madhan replied to the topic What is Trade Plan? Why it is essential in the forum Basics of Stock Trading 8 years ago
A trade plan involves understanding the risk and rewards involved in a trade deal.
For a long position, a good trade plan involves when to buy the share and sell the trade and what is the stop loss.
Similarly for a short position, it involves when to sell a share and when to buy the sold shares.
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Madhan replied to the topic What is long / short / long unwinding / Short Covering? in the forum Basics of Stock Trading 8 years ago
Long -> When the chances are more for the share prices to go high, then buying the share and holding it.
Long unwinding -> Selling the stocks that was bought in Long, when the share price is going up is called long unwinding.
Short -> When the chances are more for the share prices to go low, then selling the share at first (the share to be sold…[Read more]
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Madhan 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 ago
Stock trading takes place in the secondary or Stock market.
Stock market is the meeting place for buyers and sellers as like any other market.
Here the shares are being traded. The trading or share price is fixed between the buyers and sellers at the market.
1. Broker is the one who guides the individual, sets up the deal and settlement of the…[Read more]
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Madhan and vicky are now friends 8 years ago
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Madhan replied to the topic What is IPO? What is the process of applying for IPO? in the forum Basics of Stock Market 8 years ago
IPO is Initial Public Offering where the shares of a company are initially offered in the primary market.
SEBI governs the process of IPO. We have to apply for the IPO through SEBI.
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Madhan replied to the topic What are the other markets? in the forum Basics of Stock Market 8 years ago
Share/Stock Market is also called as Equity market
Commodity market
Futures and Options
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Madhan 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, 1 month ago
Share Holder: A share holder is the one who hold the shares of a particular company. He/She has the right to sell the share that is being held. Share holders owns the company and have the rights to appoint anyone to run the business.
Promoter: Promoter is the one who promotes/advertises the company to the public in order to raise…[Read more]
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Madhan 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, 1 month ago
As a share holder, one can offers to sell the shares but not to ask for refund or dividends.
On the other hand, the company has the option of giving dividends to its share holder.
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Madhan replied to the topic Why do we need stock market? in the forum Basics of Stock Market 8 years, 1 month ago
Stock market is essential in terms of both company perspective and individuals.
Ultimately it comes to money, its a money making market where as an individual for needs self development or as an organisation needs money to expand its business.
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