Indian Stock Market Basics

What is a Stock Exchange?

A platform or place where marketers and  buyers set up virtually or physically to trade stocks or derivative contracts. The market maybe  a physical location or a virtual market . It can be an open call out system or a realistic computer web system.

What is e-trading?

e-trading is a way of trading which lets a trader to trade without being physically acquaint in the market. The trading happens across a computer network through Internet / VSAT / Leased Lines. The traders do not want to meet one another in a physical location and as well none acknowledges to whom and from whom he's purchasing or trading. As well it aids in fetching a lot of transperency in the stock market.

How one can invest in the ShareMarket?

One can trade in indian stock market by exchange registered mediators or Brokers. A client want to open an account with the broker .The broker performs the trade upon insturctions of the client and every dealing happens through the broker.

How many Stock exchanges are there in India?

There are many regional and national level stockexchanges in the country. Most of them see no or limited. A few to name are Delhi Stock Exchange,Ludhiana Stock Exchange, Culcutta Stock Exchange, Jaipur Stock Exchange. Merely most of the trading happens at the StockExchange, Mumbai (Bombay Stock Exchange ,BSE) and the National Stock Exchange (NSE) , they're fully computerized centrals. Besides from Cash section they've Derivatives too. In total there are twenty regional stock markets in the country.

What are Indices?

An Index is a representative bod of market operation. It normally accepts into consideration a large number of stock to build a design utilizing which common comment on the stockmarket conditions can be made and anticipations can be placed. An index can be for a specific industry, type of stock, on base of capitalization (Market Cap), a bench mark index is collection of large-capitalization stock with high liquidity. These indices describe the health of complete economy. For the compostion of an index the component stock are fed a weightage due to which a change in stocks impacts the index.

A few common stockmarket rules

- Forbearance does yield in one way or the other. Forever adhere your strategy.

- Never scare when trading in Indian StockMarket. Just set up your strategy in advance and just follow it..

- Forever determine your stoploss prior to getting into a trade, so that you know the maximal loss which you may have to accept, if the trend goes against your anticipation.

- Don't get greedy.

- Sell while people are buying to a great extent. Buy when people are selling to a great extent.

More links:

Stock Market Advice | Stock Market Recommendations | Best Stock Advice | Share Market Tips