A Complete Guide on Stock Trading for Beginners

1. A Guide on Stock Trading for Beginners All the math needed in the stock market is of fourth grade level. Therefore, the individual willing to trade in stock market need not be a professional. It is not essential for the person investing in stock market to be an expert or professional. Basic free stock market coursesare more than enough. Here is a complete guide to learn about the basics of stock trading. Buy Low and Sell High This is the main principle behind which the entire stock market works. To get maximum profit, the users should always buy the stocks when their prices are low. And sell them when their prices are high. No surety It is challenging to predict the future of the share markets. There is no surety that the falling prices of a share will increase in coming days. However, with practice, the predicting capabilities of the individual strengthens. Long term gains are always safe. Meaning, the person sells his shares in 5 or 10 years. Good share market classeshelp in easy predictions of the share prices. Understand the share market Heard of the phrases, Stock market is up or Stock market is down? It is Greek and Latin for beginners. In order to understand this, it is essential to first learn, what is the flow of stock market? What is market index? How does index help to determine the flow? The market index is the number that tracks the performance of group of stocks. In India, the index of Bombay

2. Stock Exchange is called SENSEX. And the index of Nation Stock Exchange (located in Delhi) is called NIFTY. These numbers are calculated using the top performing stocks. Around 25 to 30 such stocks are selected. When these numbers are increasing, it means that most of the stock prices are increasing. When index increases, the stock market is growing. And when it decreases it is contracting. One need not do PhD to understand these concepts. An online trading courseshould suffice. They provide basic understanding about such terms. Investing in stocks Every beginner is wondering how to invest in stock market. Here is a small guide on investing in stocks. Open a Demat Account. This can be opened with any bank. The account holds electronic copies of the shares bought from the stock exchange. The documents required to open a demat account are PAN card, Aadhaar card, applicant name on a cancelled cheque, address proof, passport sized photograph. After opening the demat account, the bank provides log in id and password. One can start investing in stocks using these credentials. IPO for beginners What is IPO stock? The IPO is Initial Public Offering. It is nothing but the stocks offered by a company for the first time. The company is bringing its stocks in the share market for the first time. It is allowing the public to buy its shares from the stock exchanges for the first time. Is it safe for the beginners to invest in ipo? Yes. It is absolutely safe. However, before investing in IPO study the entire company, monitor the market trends and keep a watch over the volume of the application. This is just a basic guide on stock trading. There are many free stock market courses for beginners online. You should take them to understand it better. Widen the knowledge about stock marketing before investing.