Stock Trading Tutorial

This stock trading tutorial takes a slight departure from the standard mechanics of how stock trading actually works.  I’d like to dive into a little bit of the mental side of stock trading.  Once you have read through the basics on how to trade stocks, you can begin to formulate your goals for your personal stock trading.  Having a well defined goal is essential in any pursuit, and that is especially true for day trading.

This will be an easy stock trading tutorial to understand, but a much harder one to implement.  Balancing your effort in learning the stock market with your practice to make more money is never an easy task.  I hope we can set you down the right path so you have the tools to set realistic goals for yourself.

The first key to setting effective goals is to strive for something you have control over.  What I mean by that is to set a goal for yourself that you can accomplish no matter how the market happens to pan out.  Set up a goal to practice stock trading for so many hours a day.  Set up a goal to read about X number of trading strategies every week.  Set a goal to observe the price action of the stock market for the first half hour of the day so many times a month.  These are the types of goals that you can accomplish without ever having to make a profitable trade.  While meeting these goals will not directly put money in your pocket, they will almost certainly increase your understanding of the stock market.

Becoming a stock trader takes more than just reading a solid stock market tutorial (although we think it helps quite a bit!).  It takes a dedication to continuing your education as a trader.  It takes a certain discipline to practice different techniques, and an open mind to learn from those mistakes.  I suggest that everyone have a practice stock account that they can test out these new strategies.  This practice account can either be a paper money account or an account that you fund knowing it may not be the most profitable.  If you can treat a paper money account exactly how you would treat your own money then that is the much less expensive (and just as effective) option.

If you can find a way to motivate yourself to learn more about the stock market, you can’t help but to become more advanced in your stock trading.  One word of caution here:  if you are only reading and watching new strategies you will not learn nearly as fast.  Stock trading takes real world experience.  With the availability of practice stock trading software, there is no reason not to get your hands dirty.  I hope everyone will join me in setting specific goals for their stock trading endeavors.  If you have anything that you’d like to share with other readers feel free to leave your stock trading goals in the comments.

Stock Picking – Which stocks to buy?

Having understood all the basics of the stock market and the risk involved, now we will go into stock picking and how to pick the right stock. Before picking the right stock you need to do some analysis.

There are two major types of analysis:
1.    Fundamental Analysis
2.    Technical Analysis

Fundamental analysis is the analysis of  a stock on the basis of core financial and economic analysis to predict the movement of stocks price.

On the other hand, technical analysis is the study of prices and volume, for forecasting of future stock price or financial price movements.

Simply put, fundamental analysis looks at the actual company and tries to figure out what the company price is going to be like in the future. On the other hand technical analysis look at the stocks chart, peoples buying behavior etc. to try and figure out what the stock price is going to be like in the future.

In this article we will go into the basics of “fundamental analysis”. Technical analysis is a little more complicated. It is much more of an “art” than a science. It depends more on experience and involves some statistics and mathematics, so explaining technical analysis is out of the scope of this article.

3 important things you must know and follow as an new investor!

You need to KNOW some “unforgettable basics” before you enter the world of investing in stocks. The stock market is a field dominated by savvy investors who know the ins-and-outs of the market. For people who are not “on the inside”, the stock market can be a VERY dangerous place. :

Don’t even consider “tips” that tell you about “hot stocks”. Consider the source: There are many people in the market who put in all their time and effort in promoting certain stocks. They do this because they have their money invested in those stocks. If they can get enough people to buy the stock and they can get the stock price to rise, they will sell the stock for a huge price, the stock price will crash and they will walk off to promote another stock.

Always use your own brain: It’s extremely important. You must always use your own brain. Relying on the advice of others, no matter how well intentioned it may be, is almost always a complete disaster. Make sure you dig in and really examine the “facts about the companies” before you invest. Ignore press releases which have very little substance, and rely on “hype” to tell the company’s story.

And finally the most important tip!!!
Only invest money you can afford to lose!! Sure this is a basic point, but many many people miss it. You should only invest money that you can honestly afford to lose!! Everyone enters into investments with the idea of earning big profits, but in many cases, this never works. (Especially if you are new to investing in the stock market!)

Please understand that the above tips are tips for beginners. Once you really get into the stock market you do not need to follow these rules anymore. But if you are a new investor, you MUST follow these rules. They are for your own safety.

But then again, nothing comes free. Everything has a price. You will have to loose some money, make some bad decisions and then only will you really understand the market. You cannot understand the market by just looking at it from far. By following these rules, you will basically not loose too much!

What are the Sensex & the Nifty?

The Sensex is an “index”. What is an index? An index is basically an indicator. It gives you a general idea about whether most of the stocks have gone up or most of the stocks have gone down.

The Sensex is an indicator of all the major companies of the BSE.

The Nifty is an indicator of all the major companies of the NSE. 

If the Sensex goes up, it means that the prices of the stocks of most of the major companies on the BSE have gone up. If the Sensex goes down, this tells you that the stock price of most of the major stocks on the BSE have gone down.

Just like the Sensex represents the top stocks of the BSE, the Nifty represents the top stocks of the NSE.

Just in case you are confused, the BSE, is the Bombay Stock Exchange and the NSE is the National Stock Exchange. The BSE is situated at Bombay and the NSE is situated at Delhi. These are the major stock exchanges in the country. There are other stock exchanges like the Calcutta Stock Exchange etc. but they are not as popular as the BSE and the NSE.Most of the stock trading in the country is done though the BSE & the NSE.

Besides Sensex and the Nifty there are many other indexes. There is an index that gives you an idea about whether the mid-cap stocks go up and down. This is called the “BSE Mid-cap Index”. There are many other types of indexes.

China must hike rates by 300-500 bps next yr: Jim Walker

Jim Walker, Managing Director at Asianomics in an exclusive interview with CNBC-TV18’s Udayan Mukherjee said the US markets were resilient given the liquidity in the economy post the Federal Reserve’s move to inject USD 600 billion to resurrect the economy. He further said that the European crisis was a brewing problem.

China, he believes, would need more than monetary tightening to slow down its economy, adding that China’s interest rate had to be raised by atleast 300-500 basis points in the next year. The world’s second largest economy had printed far too much currency in 2009 and 2010 causing the Yuan to fall, thereby disrupting the world economy.

 On emerging markets, Walker said the demand side was not being addressed in most these markets.

Introduction to the Indian Capital Market

There are 22 stock exchanges in India, the first being the Bombay Stock Exchange (BSE), which began formal trading in 1875, making it one of the oldest in Asia. Over the last few years, there has been a rapid change in the Indian securities market, especially in the secondary market. Advanced technology and online-based transactions have modernized the stock exchanges. In terms of the number of companies listed and total market capitalization, the Indian equity market is considered large relative to the country’s stage of economic development. The number of listed companies increased from 5,968 in March 1990 to about 10,000 by May 1998 and market capitalization has grown almost 11 times during the same period.

The debt market, however, is almost nonexistent in India even though there has been a large volume of Government bonds traded. Banks and financial institutions have been holding a substantial part of these bonds as statutory liquidity requirement. The portfolio restrictions on financial institutions’ statutory liquidity requirement are still in place. A primary auction market for Government securities has been created and a primary dealer system was introduced in 1995. There are six authorized primary dealers. Currently, there are 31 mutual funds, out of which 21 are in the private sector. Mutual funds were opened to the private sector in 1992. Earlier, in 1987, banks were allowed to enter this business, breaking the monopoly of the Unit Trust of India (UTI), which maintains a dominant position.

Before 1992, many factors obstructed the expansion  of equity trading. Fresh capital issues were controlled through the Capital Issues Control Act. Trading practices were not transparent, and there was a large amount of insider trading. Recognizing the importance of increasing investor protection, several measures were enacted to improve the fairness of the capital market. The Securities and Exchange Board of India (SEBI) was established in 1988. Despite  the rules it set, problems continued to exist, including those relating to disclosure criteria, lack of broker capital adequacy, and poor regulation of merchant bankers and underwriters.

There have been significant reforms in the regulation of the securities market since 1992 in conjunction with overall economic and financial reforms. In 1992, the SEBI Act was enacted giving SEBI statutory status as an apex regulatory body. And a series of reforms was introduced to improve investor protection, automation of stock trading, integration of national markets, and efficiency of market operations.

India has seen a tremendous change in the secondary market for equity. Its equity market will most likely be comparable with the world’s most advanced secondary markets within a year or two. The key ingredients that underlie  market quality in India’s equity market are: exchanges based on open electronic limit order book; nationwide integrated market with a large number of informed traders and fluency of short or long positions and no counterparty risk. Among the processes that have already started and are soon to be fully implemented are electronic settlement trade and exchange-traded derivatives.

Before 1995, markets in India used open outcry, atrading process in which traders shouted and hand signaled from within a pit. One major policy initiated by SEBI from 1993 involved the shift of all exchanges to screen-based trading, motivated primarily by the need for greater transparency. The first exchange to be based on an open electronic limit order book was the National Stock Exchange (NSE), which started trading debt instruments in June 1994 and equity in November 1994. In March 1995, BSE shifted from open outcry to a limit order book market. Currently, 17 of India’s stock exchanges have adopted open electronic limit order.

Indian Capital Market The capital market is the market for securities, where companies and governments can raise long term funds. Selling stock and selling bonds are two ways to generate capital and long term funds. Thus bond markets and stock markets are considered capital markets. The capital markets consist of the primary market, where new issues are distributed to investors, and the secondary market, where existing securities are traded .The Indian Equity Markets and the Indian Debt markets together form the Indian Capital markets

Indian Equity Market at present is a lucrative field for investors. Indian stocks are profitable not only for long and medium-term investors but also the position traders, short-term swing traders and also very short term intra-day traders. In India as on December 30 2007, market capitalisation (BSE 500) at US$ 1638 billion was 150 per cent of GDP, matching well with other emerging economies and selected matured markets.

For a developing economy like India, debt markets are crucial sources of capital funds. The debt market in India is amongst the largest in Asia. It includes government securities, public sector undertakings, other government bodies, financial institutions, banks and companies.

Introduction to Investing – How Do I Choose and Use a Broker?

Basics for Beginners

What Is Forex Online Currency Trading? the basics of forex online currency trading

A lot of people are surprised to find out just how easy it is to learn even the basics in relation to Forex online currency trading. You will be surprised just how quickly you can actually start to make a profit through this type of trading, but at the end of the day this will depend a lot on which type of trader are you.

Through this article I will be explaining just how easy it is to learn about the basics of forex online currency trading and how easy it is to make a profit.

Certainly if you are someone who is looking to invest some money in order to make a little extra income then Forex currency trading may be what you should be thinking of. However it is vital that you first learn a little bit more about Forex online trading before you do. There are literally hundreds of sites on the internet which can provide you with tips and courses on how to make money from Forex trading.

There are a number of different tutorials now available online which can help explain everything a person needs to know about the Forex market and is ideal for the complete novice. These tutorials will show a person how the Forex market works, what is a Forex technical indicator, plus the types of economic indicators that a trader should be aware of when trading in Forex. Plus there are a number of different Forex trading systems now readily available for people to try and use which will help to make their Forex online currency trading much more successful.

What is extremely important if you really are interested in getting involved in Forex trading is that you do some training first. Forex currency trading is not something a person should dabble in without learning everything that they can about the subject. Certainly, you should depend on luck or based on someone’s insider tips as well.

The great thing about many of the Forex online currency trading courses that are now available is that those running them understand what an enormous risk someone is taking getting involved in this type of trading. The people running these courses have made it extremely easy for those who want to learn as they offer their members free training, free demonstrations as well as tutorials and simulations of Forex trading accounts. The great thing about these simulations is that you can try them out without actually placing any of your money in to them and will help you learn the basics of Forex currency trading. Actually finding a course or tutorial is extremely simple all you need to do is key in “Forex currency trading online courses” and you will be amazed at the results that appear.

Why Most Forex Traders Base Their Foreign Currency Trading On Technical Analysis

For many years Forex traders used fundamental analysis as the basis for their trading but today more and more traders are choosing to use technical analysis. But just why are we seeing this move away from a time-honored, tried and tested system?

Traditionally Forex traders have based their trading decisions on fundamental analysis which looks at both past and present political and economic events to predict future movements in currencies.

Fundamental analysis is not easy and requires the trader to have considerable knowledge of political and economic events and experience in analyzing both. It also requires the trader to work with a hue quantity of data. In addition, there is considerable disagreement amongst traders over just what political and economic data is important when it comes to predicting currency movements and, where agreement does exist, there is still often argument over how much weight each factor in the equation should be given.

Today however traders have the option to abandon fundamental analysis in favor of technical analysis. Many people believe that technical analysis is nothing more than a modern day extension of fundamental analysis and it is based upon three principles:

First, many things produce movements in currency prices, including political and economic events, but the effect of these forces has already been absorbed into a currency’s price at any moment in time. In other words, there is no need to look at the reasons for the movement in a currency price but to simply focus on the price movement itself.

Second, the price of a currency will follow a clearly defined trend which can be seen by examining the patterns which emerge in the market over time.

Third, the price of a currency does not simply follow a trend when looking at historical market data, but will also follow this trend in the future. This principle reflects the technical analyst’s view of human psychology and is based upon a belief that past movements in currency prices are the result of the manner in which people have reacted to certain circumstances and that people will continue to react in the same manner, and currencies move in the same way, in the future.

There is often great argument about whether or not technical analysis could possibly work since, in the view of many people, it really does not have any sound basis. However, the truth of the matter is that technical analysis does work. No system can predict currency movements with one hundred percent accuracy but, compared side-by-side, both fundamental and technical analysis do a pretty good job.

Without going into too much detail here (because that would take a very long article all of its own), technical analysis is essentially a computer-based system of analysis which takes historical price data and looks for patterns in that data which can then be presented to the trader in the form of a chart or graph. At the same time the system also looks at a chart or graph of the current price movements of a currency and compares the present pattern of movement with past patterns in order to find a match and thus predict the future direction in which the currency will travel.

Given this picture, it is not too hard to see why younger people who have grown up in today’s computer age choose to adopt technical analysis as the basis upon which to make their foreign currency trading decisions.

LearningForexTradingOnline.com provides information on everything from finding a foreign currency exchange rate to the Forex mini account and is the perfect place to learn Forex currency trading online.

Stock Market Trading Secrets Tips Tricks Advice Trends Stock Market of India

Online Stock Market Trading tips tricks and techniques Secrets Advice Trends stock market of India for beginners. How to get success in stock market trading.

While making an investment in Indian stock market there are lots of thing you should consider before it. I will guide you most important thing and tips that you can implement while making any investment in stock market of India. These stock market tips and tricks are based on many years of expertise experience and as a professional expert in Indian stock market. These are the Stock market secrets ……..

Buy at low and sell at high: – This is way to make money in stock market that you should buy at lower prices and should sell at higher prices. It determines the success and failure of an investor in stock market of India. Stock Market Trend: – If you want to be a successful investor in stock market of India you should have perfect idea of stock market and what is going on in the stock market. For this you should have up to date with Indian stock market news.

If stock market is going up try to search out reason behind it. If market is going down then also try the same. Make your mind calculation with these points and than come to a final decision whether you should keep sell or buy. Down and up it is the duty of stock market of India. Stay longer with stock market may result in profit or may be results in loss, it’s totally depends upon the reason why these major up downs have been taking place in stock market. In case you have got the right point than you will get other wise loss.

Current Trend of Stock Market: – As per current trend of stock market it has been seen that once stock market rise at higher speed it down also with same speed and if stock market have gone down there is more possibilities of getting up. This is the current market trends but it can be change in future.

Keep patience: – Patience is also plays a vital role in your winning and losing. In stock market many peoples take immediate decisions which can result in big losses later on. This is the nature of stock market every step should be take after a deep thinking and consideration.

Find more stock market tips and money making tips and tricks. You will find stock trading as well as other money making ideas tips and tricks.

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