Basics Of Trading

This blog is started in a motive to guide others or beginners to develop as a better trader The blog covers the different ways of trading,stock selections,dos and donts of share trading.The blog will be updated weekly with current market  trends ,sectoral  analysis and suggestions for the opening week.

Some fundas of  stock market:

 BSE sensex -(Mumbai indice)and NSE sensex- (national indices )comprises of stock market companies which can be bought and sold. nifty and sensex are further segmented into nifty 50,cnx midcap, cnxssmallcap, nifty 500,nifty IT, nifty 100, nifty realty, nifty infra,nifty energy,nifty mnc, nifty pharma,nifty PSE,nifty bank,nifty service, nifty medi,nifty metal,nifty auto,nifty vix.
Midcap is a company whose  market capitilazation ranges from 1000 crore to 5000 crore and small caps ranging up to 100 crores.

 Intra day trading.
If one has bought ABC company shares at x price in morning and able to sell at x+5 rupees on the same day then it's intraday. Please note that Good price movement stocks must be used for intraday and graphs should be one of a raising. So for intra day, before purchase ensure graph will perform better due to some  market factors like demand,n
ew orders or productivity increase or today's sectoral gain Or it xould be any other positive factor for the stock.
 Generally brokerages are less for intraday 0.02paise  l(angel broking)and margin is 16 times on your investment. Note that intraday money making is not easy and it will be fruitful only if one knows how much a company price can go up surely ,So beginners are recommended for delivery trading.



 Delivery/holding reading:

 Suppose unfortunately prices have slashed down or other case it hasn't reached the target price in your mind, then one can hold the stock for tomorrow or till any number of days until the target profit is reached. This is called delivery trading. Margin limit given by broker will be lesser compared to intraday and brokerage will be more and in my case it is 0.28 paise.