While you are running after getting a secured job in a reputed company or a govt organization, while you are cursing your fate for the less salary that you are getting every month, while you are blaming your family for not allowing you to go outside your house to earn, while you are working day and night but still you are not satisfied with the revenue that you are generating from your business, try to play little smarter, be intelligent and do trading in share market.
Funda of share market is very simple- be intelligent and be little educated. Money will come automatically. And ladies, please do not thing it is not your cup of tea. I am into this industry and I am a woman. So trust me on this. This is “the next best thing” for a woman to earn money.
Trading:
It is like any normal market where buying and selling takes place. But here the things which are traded are little different. The traded things in a trade market are called financial instruments which include:
- Stocks- these are parts of ownership of companies. A company in order to raise funds issue stocks/ shares. The issuing of shares are done through a process called IPO where for the first time a company issues its shares.
- Commodities – These include----> Gold, silver (also known as bullion metals),zinc, aluminum, lead, nickel, copper( also known as Base metals ),natural oil, crude oil (also known as energy),agricultural products (like wheat)
- Forex or foreign exchanges- these consist of foreign currency
Yes, you read it correctly, starting from wheat to oil to companies all can be bought or sold in trading.
The entire market trades following the below hierarchy:
- Regulators- these regulate the market for smooth functioning of the entire process. For eg- sebi, rbi, fmc
- Exchanges- these are the places where trading happens. There are different exchanges for different sectors. For eg- nse and bse are there for equity market, mcx and ncdx r there for commodity market etc.
- Brokers and sub brokers- a trader cannot trade alone. As per sebi guidelines a trader need to approach a registered broker or sub broker, open a trading and demat account in any bank.
- Traders- those who trade are called traders. Any individual can trade, a broker can trade, even any institute can trade. Institutes who trade are called institutional investors.
Stock market:
Timing of stock market:
9:15am -3:30pm (IST)
There are two types of trading in stock market:
- Intraday trading- where trading is squared off in the same day. Squaring off a trade means when somebody buys a share and sells it in the same day.
- Delivery trading- when somebody buys a share and sells that in the next day or after few days.
Your cost:
Whenever you are buying shares, you have to pay money. Plus each time you buy or sell a share you have to pay a small percentage to the broker which is called brokerage amount. In addition to all these there will be tax.
How will you earn money?
The simple funda is to understand when will the price of share rise. If you feel that share price of a particular market will go up in future, you can buy the share and sell later when the prices rise.
In trading terms, whenever market goes up, the situation is called bullish and whenever market goes down, the situation is called bearish.
Why do people lose money in share market?
- They fail to understand the market trend
- They do not take into account the influence of several factors like market prices of other stock exchanges, changes in govt policies, economic factors like unemployment etc
- They go my their own 6th sense and forget to be calculative
- They do not apply the concept of stop loss
Benefits of trading:
- You can earn huge amount of profit just by sitting at your place
- When banks mutual funds are giving such low rate of interest, you can earn a huge amount of money if you are little intelligent
- Trading is such a market which will be there as long as industries are there, as long as agricultural products are there, as long as oil or gas is there- in other words as long as existence of humans race is there.
