*Stock trading take place in exchange where buy/sell orders are placed via brokers.
*Broker is an intermediary between trader and exchange.It is responsible for excuetion of trade.
*Exchange is a platform where buyers and sellers meet.when your order matches to counterparts price, then order is executed.
*SEBI monitors activities of exchange.
*Government doesn’t directly involve in stock market and set roles for SEBI and make sure that SEBI can handle the issues.
*Bank account is required for transactions to happen between trader account to others.* In Stock trading we get high returns in short span of time compare to other investments.
*More over it is easily accessible and can be used as secondary income.*We can place an order using software portal provided by broker(DEMAT account).
*Types of orders-*Buy order
*Sell order.
*Order is valid till end of the day i.e 3:30 pm closing time of stock market.
*When we expect share price to go up we create long position.
*In long position first we buy shares and sell it later.
*when we expect price to go down we create short position.
*In short position first we sell shares and buy it later.
*Long unwinding-selling the shares bought to exit long position.
*Short covering-Buying the shares which are already sold to exit short position.
* In Positional trading, the shares are hold for longer period(week/month/year).
*Intraday trading refers to buying and selling shares within same trading day(9:15-3:30)
*Trade plan defines*selection of stock
*which stock to be bought & sold.
*calculation of risk and reward.
*stop loss(when to exit).
*It is essential to be a knowledge and discipline trader.