Free Stock market basic and fundamentals

Here in this section the online stock trading basic is mentioned in a simple and step by step manner so that a beginner or a layman can understand. What is a DEMAT account and how to open a DEMAT account? Demat account is just like an account in a bank. All the money used in shares is taken from this account. Shares and securities are held electronically in a Dematerialized (Demat) account, instead of the investor taking physical possession of certificates. A Demat account is opened by the investor with the help of an investment broker or sub-broker. Major brokers are Aditya birla money ltd, Share khan, India infoline etc. Document required for opening DEMAT account- Pan card, photo, 6 month bank statement, 2 cheque. They provide Trading and Demat account in one platform. Difference between Trading and DEMAT account? A trading account is used to place buy or sell orders in the share market. DEMAT account act as a bank where shares bought are deposited in and where shares sold are taken from. What is online trading? Online trading is basically the act of buying and selling stocks through an online trading platform. These platforms are normally provided by internet based broker and are available to every single person who wishes to trade and make money online from the market. Stocks, future, options and commodities like Gold, silver, crude can be traded through online trading. How can I invest money in share market? After opening Demat and trading account you can trade online or buy/sell stocks, future, options, commodities through trading platform. Transfer money from your bank account to DEMAT account and pick any stock for trade. Most important part is you should know the trend of that stock before buy/sell. The trend can be derived from technical analysis chart. In this E- Book segment read technical analysis to know the trend, upper level and lower level of any stock or index. Or first read what most successful trader use to make profit. What is a stock or share market? In simple words a stock market is a place where stocks, bonds, options, futures and commodities are traded during specific hours on business days- Monday to Friday. It is a loose network of economic transactions between traders through buy sell of stock or equity or shares. These all are done in a stock exchange. Mainly three high volume exchanges are there. National stock exchange (NSE) - Equity, Future, and options traded. Bombay stock exchange (BSE) -- Equity, Future, and options traded. Multi commodity exchange (MCX)—Gold, silver, metal, crude, NG traded. What is the difference between Trader and Investor? Traders generally frequently buy and sell stock, commodities and currency with a goal of generating returns quickly from the market. Intraday trader buys and sell stocks in the same day for profit while short term positional trader hold position for 2-10 days for profit. Trader always wants to make 10% profit in monthly basis which is difficult without Technical Analysis. Whereas Investor invest their money for long term (1-3 year) to generate returns. They take the advantage of dividend, split and bonus. They expect 10-15% return from their invested money. Stock trading tips for beginners- 1. Open a DEMAT and trading account in broking house which provide high leverage. 2. Transfer Rs. 20000/- to Demat account and practice buy sell of stocks in the trading platform or software provided by broking house. 3. First try to know the trend of Index (Nifty). If Nifty moves up then most stock moves up and in case nifty moves down stock also moves down. Nifty and Bank nifty technical trend is updated daily here. 4. Know the opening trend of Nifty or Indian market before market opens. Refer “SGX Nifty Live Chart”. Read this page to know the importance of SGX Nifty chart. 5. If Nifty trend is positive then take stock position in buy side. Initially don’t take more than 100 shares till you feel confident. Stock technical trend is updated daily here. 6. Always keep stop loss and don’t carry away by emotions. 7. Learn “How to study Technical chart?” You can know trend of stock, upper and lower level of the stock, so you can make strategy in buy or sell side.