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Thanigaivelan replied to the topic How much time required to do trade? in the forum Basics of Stock Trading 7 years, 8 months ago
If the bid price matches with the ask price trade will get executed immediately. There is no specified timeline required to do trade.
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Thanigaivelan replied to the topic What is online trading? in the forum Basics of Stock Trading 7 years, 8 months ago
Trading ie, buying and selling done online using trading account is said to be online trading.
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Thanigaivelan replied to the topic What is Trade Plan? Why it is essential in the forum Basics of Stock Trading 7 years, 8 months ago
Trade plan is done before buying or selling the stock. Before buying analysis such as technical or fundamental has to be done. We have to decide whether long or short position has to be created. Plan has to be done with price and volume of the stock. we have to set stop loss limit to avoid huge loss. Trade plan is essential to avoid huge loss and…[Read more]
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Thanigaivelan replied to the topic How Stock exchanges ensure the traders counter party risk? in the forum Basics of Stock Trading 7 years, 8 months ago
Stock exchanges deal with brokers instead of directly with traders. Counter party risk such as share certificate is transferred but money has not been received or vice versa happens exchanges will question brokers. Exchanges have caution deposit from brokers, if the counter party has not honored the cheque, exchange will compensate the money from…[Read more]
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Thanigaivelan replied to the topic What is the difference between Trading and Analysis? in the forum Basics of Stock Trading 7 years, 8 months ago
Trading is buying and selling stocks. It requires less analysis. It depends more on market sentiment. Trading should be done with short time and quick movements.
Analysis is nothing but understanding everything about the stock. More time has to be invested before choosing the stocks. There should be strong reasons to justify. Analysis usually…[Read more]
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Thanigaivelan replied to the topic Why do people choose stock trading? in the forum Basics of Stock Trading 7 years, 8 months ago
People choose stock trading for the following reasons,
It is a tool for investment.
Very flexible to invest.
It can be started with very low money
It can be full time or part time business
It can multiple very fast if used correctly
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Thanigaivelan replied to the topic Is Stock trading is gambling or Business? How? in the forum Basics of Stock Trading 7 years, 8 months ago
Any activity which is done without considering the amount of risk is considered as gambling.
In case of stock trading when proper analysis are done before investing makes it as business.
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Thanigaivelan 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, 8 months ago
Stock trading takes place in stock market. When trader A wants to buy a stock and trader B wants to sell the stock, they both approach their respective brokers and place their orders. These orders reach the exchange and where actual exchange takes place.
Broker plays the role of taking the orders from their clients and submitting to the…[Read more]
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Thanigaivelan 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, 8 months ago
If one has quoted high price wrongly when compared to the current market price, the system by default consider it has up to that high price the buyer is ready to buy the stock and his order will be placed at the top and trading will happen immediately.
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Thanigaivelan replied to the topic Who decide the stock price? in the forum Basics of Stock Trading 7 years, 8 months ago
Market decides the stock price. Demand and supply also decides the stock price.
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Thanigaivelan replied to the topic How to place order? Types of order? Validity of order? in the forum Basics of Stock Trading 7 years, 8 months ago
Order can be placed through online platform. After placing order it will be executed by the broker.
Two types of order- Buy order & sell order.
There is no specific validity for placing order. Till we cancel the order it will be shown in the screen.
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Thanigaivelan 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, 8 months ago
Yes, it is possible to buy stocks from BSE and sell it on NSE.
The companies stock should be listed in both the exchanges. The shares are held in DEMAT a/c so it can be easily accessed by both exchanges. The only limitation is that we cannot do it in intraday because shares should be available in our DEMAT a/c.
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Thanigaivelan replied to the topic What is long / short / long unwinding / Short Covering? in the forum Basics of Stock Trading 7 years, 8 months ago
When a trader calls his broker that he has plan to buy the stock, broker will be in confusion whether he is going to buy for the first time or he is going to sell the bought one. So, to have clear view these terms are created.
Long means trader going to buy the stocks for the first time and going to hold the position.
short means trader going to…[Read more]
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Thanigaivelan replied to the topic What is positional trading and Intraday trading? in the forum Basics of Stock Trading 7 years, 8 months ago
Positional trading- Buying the stocks and holding it more than a day.
Intraday trading- Buying and selling happens in the same day.
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Sampath Kumar Gopinadhuni and Thanigaivelan are now friends 7 years, 8 months ago
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Thanigaivelan replied to the topic What is DEMAT a/c? in the forum Basics of Stock Market 7 years, 8 months ago
Few decades back, share certificates are given in physical format where share holder has to keep this in his own custody and at the time of selling he has to bring it to the exchange. Nowadays, these physical material has been computerized ie, de-materialized. Share holder who wishes to sell can now place the order in computer and get his work…[Read more]
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Thanigaivelan 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 7 years, 8 months ago
No, share holder does not have any rights to ask for refund of money or dividends.
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Thanigaivelan replied to the topic What is the role of SEBI? in the forum Basics of Stock Market 7 years, 8 months ago
SEBI-Securities and Exchange Board of India. Stock markets are regulated by SEBI. Companies who wishes to raise money through public offering has to get prior permission from SEBI. If they fulfill all the criteria then the company can issue shares to public and raise money. Public grievances related to stock market are addressed by SEBI.
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Thanigaivelan 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, 8 months ago
Share holder is the person who has share in the company with respect to assets, profit and dividend. The person who holds the share certificate is known as share holder.
Promoter is the person who promotes the business. He has rights to sell his company to another person.
Director is the person who directs the company to growth. He is the…[Read more]
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Thanigaivelan replied to the topic Basics of Stock Market in the forum Stock market questions and answers 7 years, 8 months ago
We go to stock market to buy and sell shares. As a public we cannot search for particular person who in need of shares so with the use of stock market we can buy or sell shares because it brings all public under one roof.
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