Stock Market Trading
Stock Values
Stock market trading may be open to everyone, yet the novice investor wakes up to speed on the concepts of stock trading. Stock values are publicly declared measures of the actual value of a company on any particular day. Stock variance is proportional to the fate and fortune of the company. Smart stock market traders make money when they buy or sell just as the swings of the company.
Businesses and Industries
Stock market traders keep up with the news. The businesses and industries react to government actions, changes in oil prices, economic forecasts and world events. The successful stock market trader stays informed about the circumstances outside a company that could cause price fluctuations for the stock.
Depending on the timeline for investment and market monitor, stock market traders either become
day traders, or swing traders or position traders.
Day Trading
Day trading conditions the most intense approach to stock market trading. To be on top of the fluctuations in stock prices, day traders spend hours together in monitoring the market. Day traders could make dozens of trades any day, sometimes in a matter of minutes hoping to grab the wave of price change. They avoid the risks of long term buy and hold. Day trading could be exciting, the fast pace attracting risk takers. Yet this strategy for stock market trading is only effective for day traders, who apply analysis rather than emotion to trading decision. Savvy day traders could turn profits quick. Emotional traders usually lose fast and leave disenchanted.
Swing Trading
Swing trading uses a slightly longer time horizon than day trading, watching a stock for weeks or months before trading. This type of stock market trading relies on careful monitoring of fundamental and technical analysis. Swing traders often specialize in a certain business or industry so that they become experts in the movement within those stocks. They also have more time to study the company financial reports and industry forecasts. Since swing trading does not require hours of daily monitoring, it is a good strategy for the trader who wants to make money from stock market trading without turning it into a full time job. Even the study of reports could be done during the daily commute or lunch hour so that the swing trader stays well informed.
Position Trading
Position trading works well for investors who want to be involved in the stock market trading, but run short of time. Stocks are being held for months awaiting any changes in the trend. Position traders
keep up with the fundamental and technical analysis as well as news events but apply a long term strategy to their stock market trading.
NSE and BSE
Investing in Indian Stock Market first and foremost needs a well informed knowledge. One had to ascertain about the listed companies in the NSE and BSE, before choosing the required number of shares of the company. However, the trend of money making depends on investing in the prominent stocks with good management record. Investment too needs proper knowledge to time the market conditions. The long-term investments give profitable returns from investing in the stock. Apart from selecting the stock for investment, the value of each stock is to be determined. The investor could get consistent return sonly from growth stocks.
Indian stock markets at present have been a lucrative field for the investors and investing in Indian stocks are profitable for not only the long and medium-term investors, but also the position traders, short term swing traders and very short term intra-day traders. Presently there are nearly 3,5000 companies listed with BSE or
widely used market index and since 2006, as regards the volume of transactions, it is ranked as one among the top five stock exchanges in the world. In terms of market capitalization, there are over 2,500 companies in the BSE chart list with the Reliance Industries Limited at the top. The SENSEX today provides a profitable business to those who had seen investing in the Indian stock market.
Indian Stock Market Companies
In the Indian Market scenario, the large FMCG companies reached the top line with a double-digit growth with their shares being attractive for investing in the Indian Stock Market. The companies like
the Tata Tea, Britannia, to name a few, have been providing a bustling businessfor the market. Other leading houses offering equally beneficial stocks for investing in the market, of the SENSEX chart include the two wheeler and three wheeler makers. Bajaj Auto, happened to be the leader. The second largest company happened to be the software exporter Infosys Technologies, top private sector telecoms service provide Bharti Airtel, major pharmaceuticals Ranbaxy Laboratories, housing finance company HDFC, state-owned heavy electrical equipment maker BHEL, steel maker Tata Steel and second largest lender private sector ICICI Bank.
