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  1. #1
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    Angry How can I start trading and investing in stock market?


    How can I start trading and investing in stock market?




    There are two ways of doing it.

    First, open a Demat and Trading Account with your Bank.

    1. A demat (dematerialized) account in your bank is required for deposit and withdrawal of shares which you will be buying and selling.
    2. A Trading Account is required for buying and selling of shares in the market.
    3. After opening of Demat and Trading Account with your bank, you can start trading in shares through your Bank.
    4. Different Banks like SBI, HDFC etc. provide services for trading like trading through phone or trading online through the internet and you have to choose as per your choice.
    5. If you are well versed with the Internet, you can trade online; otherwise you can just trade through the telephone. That is, telling your bank which share you would like to purchase (including quantity) and which share you would like to sell.

    Another way of trading in share is to open a Demat and Trading Account with some Broker Firm or Company like Religare Securities and Indiabull etc.

    These broker firms also provide all kind of facilities for trading and in my personal opinion, trading through broker firms is more suitable.

  2. #2
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    Default What is technical analysis of shares and stocks?

    What is technical analysis of shares and stocks?

    The technical analysis is the study of stock prices irrespective of the fundamentals of the company.

    Technical analysis (TA) is done on the basis of OHLC (open, high, low and closing price) and volume of the script on various time frames like 5 minutes, 30 minutes, daily, weekly, monthly etc.

    The prices of the a particular script or share are depicted in chart form for a particular period of time and with the aid of various studies like candle sticks, bars, patterns, oscillators etc. expected move and direction of the share/script is figured out.

    Technical analysis of share requires specific software designed to transform the history price data of a specific share into chart form like this.

  3. #3
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    Default What is BSE?


    What is BSE?

    BSE IS BOMBAY STOCK EXCHANGE WHICH IS ASIA'S OLDEST BROKING
    HOUSE.IT WAS ESTABLISHED IN 1875 IN MUMBAI.IT IS ALSO CALLED
    AS DALAL STREET.IN BSE THERE ARE 6000 COMPANY
    LISTED.CALCULATION OF MARKET CALLED SENSEX WHICH CALCULATED
    BY FREE FLOAT METHOD UNDER TOP 30 COMPANY ACCORDING TO THERE
    MARKET CAPITALIZATION.

  4. #4
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    Default How is BSE - Sensex Calculated

    How is BSE - Sensex Calculated

    The Sensex has a very important function. The Sensex is supposed to be an indicator of the stocks in the BSE. It is supposed to show whether the stocks are generally going up, or generally going down.

    To show this accurately, the Sensex is calculated taking into consideration stock prices of 30 different BSE listed companies. It is calculated using the “free-float market capitalization” method. This is a world wide accepted method as one of the best methods for calculating a stock market index.

    Please note: The method used for calculating the Sensex and the 30 companies that are taken into consideration are changed from time to time. This is done to make the Sensex an accurate index and so that it represents the BSE stocks properly.

    To really understand how the Sensex is calculated, you simply need to understand what the term “free-float market capitalization” means. (As we said earlier, the Sensex is calculated on basis of the “free-float market capitalization” method) But, before we understand what “free-float market capitalization” means, you first need to understand what “market capitalization” mea
    ns.

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    Default What are penny stocks?

    What are penny stocks?

    1. Penny stocks, as the name suggests, are the shares which are very cheap.
    2. In the context of Indian Share Market, there are hundreds of shares having price less than 20 rupee per share.
    3. There are shares having value of even less than a rupee.
    4. Penny stocks are shares of companies having very low market capital; but because they are listed in stock exchange, people trade in them too.
    5. These shares are usually risky and should not be traded.
    6. But, sometimes when a company, which was not doing well in past years starts to perform well due to certain fundamental reasons, the value of such penny stock rises with an incredible pace.
    7. One can visit the web site of National stock Exchange of India and search for securities less than 20/- rupees to have some outlook about penny stocks.

  6. #6
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    Default What is Market Capitalization?

    What is Market Capitalization?

    You probably think that you have never heard of the term “market capitalization” before. You have! When you are talking about “mid-cap”, “small-cap” and “large-cap” stocks, you are talking about market capitalization!

    Market cap or market capitalization is simply the worth of a company in terms of it’s shares! To put it in a simple way, if you were to buy all the shares of a particular company, what is the amount you would have to pay? That amount is called the “market capitalization”!

    To calculate the market cap of a particular company, simply multiply the “current share price” by the “number of shares issued by the company”! Just to give you an idea, ONGC, has a market cap of “Rs.170,705.21 Cr” (when this article was written)

    Depending on the value of the market cap, the company will either be a “mid-cap” or “large-cap” or “small-cap” company! Now the question is, how do YOU calculate the market cap of a particular company? You don’t! Just go to a website like moneycontrol and look up the company whose market cap you are interested in finding out! The figure in front of “Mkt. Cap” will be the market cap value.

    Having seen what market cap is and how to find out the market cap of a particular company, let us try to understand the concept of “free-float market cap”

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