Stock Market seems lucrative to many traders. It is considered by many as an avenue where lots of wealth can be made. The stock market is always accompanied with lot of risks. There are always probabilities of loss while trading in the Stock market. The risk factor can be minimized by using a strategy which has high rate of success. It is an experience of all that it is difficult to predict the future price movements with 100 percent accuracy. There are always losses associated with the trading plan. However a good strategy can land the stock trader in overall profits. A strategy which has about 60-65 percent returns can be considered as a good strategy.
The stock market can turn beneficial and it also requires very little resources to start the stock trading. A computer with online trading account is required at first. Also a minimum amount to trade is required. The trader can start trade with amount as low as 5000 Rs. The important exchanges on which the stock trading can be done in India are BSE and NSE. The BSE stands for Bombay Stock Exchange and NSE stands for National stock exchange. By buying the stocks one gets the ownership in the company whose stocks are purchased. The higher the number of stocks purchased the more is the ownership one gets.
The prices of the stocks in the stock exchange continuously changes and fluctuate. The reason for the change in the prices of the stocks is mainly demand and supply. An increase in the demand of the stocks will lead to increase in the price of the stocks. On the other hand a decrease in the prices of the stocks will lead to decrease in the prices of the stocks. The events as well as news also have a major impact on the prices of the stocks. A positive event or positive news tends to increase in the value of the stock and will therefore lead to increase in the price of the stock. This is due to the increase in the demand of the stock. Similarly a negative event or news will tend to decrease in the value of the company and hence demand. This will lead to decrease in the price of the stocks.