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What care should be taken before investing in the stock market?

Equity Market is the market where equity or stock of different companies are issued through IPO and traded over the Exchange.

To proceed or to start investing in Stock Market first of all you need to open a demat account for which your PAN No. would be required with out this you can not trade or invest in market .

In stock market any time you can enter, how much amount you should have to invest , it depend on you risk taking capacity although to invest in equity commodity and derivative is subject to market risk. but it doesn’t mean that any individual can not receive a future benefit of market you can according to your risk appetite

Risk appetite can be defined as ‘the amount and type of risk that an individual investor or trader is willing to take in order to meet their strategic objectives.

in market risk is directly proportional to reward. an individual expecting to receive higher return then the risk associate with that investment also would be high.

so it is better to work according to work according to proper risk appetite through which we can receive better return.

How to Invest or trade:

Understood the market phenomenon

Select Trading Strategy Intraday/ Positional

Evaluate your individual Risk Appetite

Identify your Risk Appetite

Being Updated with Economic, political , industrial ,and international market concern Ways2capital Investment Advisor (Indian company)

The Basic terms that are widely used in stock market are as follow :

Open: The stock price in beginning of day(i.e. in morning)

High: The stock price reached at the highest level in a day.

Low: The stock price reached at the lowedt level in a day.

Close: The stock price at which it remains after the end of market timings or the final price of the stock when the market closes for a day

Volume: Volume is nothing but the quantity

Bid: The buying price is called as bid price.

Offer: The selling price is called offer price.

Bull Market: A bull market indicates the constant upward movement of the stock market. A particular stocks that seems to be increasing in value is described to be bullish.

Bear Market: A bear market indicates the continuous downward movement of the stock market. Stock that seems to be decreasing in value is described to be bearish.

Short Selling: Short selling is the practice of selling securities that are not currently owned, and subsequently repurchasing them . More specifically, a short sale is the sale of a security that isn’t owned by the seller, but that is promised to be delivered.

In the event of an interim price decline, the short seller will profit, since the cost of (re)purchase will be less than the proceeds which were received upon the initial (short) sale.

https://www.ways2capital.com/stock-futures.php



This post first appeared on After Italy Verdict Gold Trades Higher On Safe-haven Demands; Silver Down, please read the originial post: here

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What care should be taken before investing in the stock market?

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