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Kannan replied to the topic What is Trade Plan? Why it is essential in the forum Basics of Stock Trading 7 years, 2 months ago
Trade Plan is the plan to buy or sell the share by the trader after doing extensive study of the stock.
This also includes Entry, Stop Loss, Target or Exit.
This is very essential because only by following a plan one would be able to sustain in the market or make profit. It also gives the trader all the risk and reward before entering the…[Read more]
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Kannan replied to the topic What is the difference between Trading and Analysis? in the forum Basics of Stock Trading 7 years, 2 months ago
Analysis is the art of studying the stock using fundamental or technical analysis and predicting the likelihood of the price to go up or down.
Trading is actually executing buying or selling of shares.
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Kannan replied to the topic What is online trading? in the forum Basics of Stock Trading 7 years, 2 months ago
With the advanced technology, now we are able to trade through Internet from our desktop, tablet or a mobile. This is called as online trading since both buyer and seller trade through their respective broker in the exchange.
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Kannan replied to the topic Who decide the stock price? in the forum Basics of Stock Trading 7 years, 2 months ago
Only buyers and sellers decide the price. When buy and sell price meet trade takes place.
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Kannan replied to the topic How Stock exchanges ensure the traders counter party risk? in the forum Basics of Stock Trading 7 years, 2 months ago
On Cash Market, the trader has already paid the full amount so there is almost no risk.
On Futures and Options market, exchange fix some minimum amount based on the daily volatility and this is called as margin or premium.
Since this amount is based on the daily volatility of the stock, at the end of the day cash is adjusted between the traders.…[Read more]
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Kannan replied to the topic What is long / short / long unwinding / Short Covering? in the forum Basics of Stock Trading 7 years, 2 months ago
When a trader takes a long position he is buying the share first or newly and is expecting the price to go up.
When a trader takes a short position he is selling the share first or newly and is expecting the price to go down.
Long unwinding is selling the already bought share to realize profit.
Short covering is buying the already sold share to…[Read more]
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Kannan replied to the topic Is Stock trading is gambling or Business? How? in the forum Basics of Stock Trading 7 years, 2 months ago
Stock trading could be both depending on the trader.
It is a gamble when one speculate that the price of a particular stock may be going up or down for no particular reason, or follows somebody’s advice that price may go up or down without any logic or without doing any study.
It is business for one who studies that stock and bases his decision…[Read more]
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Kannan replied to the topic What is positional trading and Intraday trading? in the forum Basics of Stock Trading 7 years, 2 months ago
Positional trading is when a buy or sell position is taken and the trader waits for a week or even months before squaring off.
Intraday trading is when position is taken and squared off on the same day itself before market close.
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Kannan replied to the topic How to place order? Types of order? Validity of order? in the forum Basics of Stock Trading 7 years, 2 months ago
Through online trading software provided by broker one can place orders.
Buy and Sell orders.
Market Order – Executed immediately upon placing buy or sell order.
BUY-L – Buy Limit Order <span style=”line-height: 1.5;”>- Executed upon reaching Limit price.</span>
SELL-L – Sell Limit Order <span style=”line-height: 1.5;”>- Executed upon r…[Read more]
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Kannan replied to the topic Why do people choose stock trading? in the forum Basics of Stock Trading 7 years, 2 months ago
Most of the people choose stock trading for getting rich quicker but ultimately lose their capital quicker.
I think apart from the above the reason it could be the flexibility it offers, some focus on dividend paying company for their investment.
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Kannan replied to the topic How much time required to do trade? in the forum Basics of Stock Trading 7 years, 2 months ago
The time for the exchange to process trades is almost instantaneous when buy and sell prices meet.
If it is the time required for trader to study the market before placing an order then it depends on what type of trader he or she is.
In my view, positional traders may need less time when compared to intraday traders as they only have to look at…[Read more]
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Kannan 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, 2 months ago
It gets executed immediately with the lowest quoted sell price(s) depending on Buy and Sell quantities.
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Maruti Patil and Kannan are now friends 7 years, 2 months ago
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Kannan replied to the topic What is the difference between primary market and secondary market? in the forum Basics of Stock Market 7 years, 2 months ago
When an IPO is floated, shares will be distributed among the applicant on the basis of the number of applications and the shares allocated through this is called as Primary Market.
When people buy and sell shares through NSE, BSE and other exchanges it is called as secondary market as it is being sold or bought second time.
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Kannan replied to the topic What are the other markets? in the forum Basics of Stock Market 7 years, 2 months ago
Derivative Market
Commodity market
Forex market
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Kannan replied to the topic What is the role of SEBI? in the forum Basics of Stock Market 7 years, 2 months ago
SEBI is the regulator for Stock market.
Any company wants to float IPO, they have to get permission from SEBI.
They also ensure that all the settlements are taking place in a smooth manner between the buyers and sellers.
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Kannan replied to the topic What is the difference between Investments and trading? in the forum Basics of Stock Market 7 years, 2 months ago
Investments are for longer periods of time while trading is for shorter period of time.
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Kannan replied to the topic What is DEMAT a/c? in the forum Basics of Stock Market 7 years, 2 months ago
DEMAT stands for dematerialised Account. Earlier, when someone purchases share it required a lot of paperwork and usually share certificate will be dispatched to that person. To simplify and to make things easier in the digital world, DEMAT account has been introduced where the shares are stored in digital form. Each person is allocated with a…[Read more]
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Kannan replied to the topic How come NSE become popular than BSE? in the forum Basics of Stock Market 7 years, 2 months ago
NSE introduced Futures and Options by which people can trade both the directions i.e. buy and sell and also sell and buy and also margin required to buy or sell is very less.
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Kannan replied to the topic Why do we need stock market? in the forum Basics of Stock Market 7 years, 2 months ago
We need Stock Market to buy and sell shares.
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