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A Simple Guide for Beginners to Stock Market



Introduction 
Stock Market or Equity Market or Share Market is the place where the Shares of different companies are being traded.

What is a Stock?
A stock (also known as equity) is a security that represents the ownership of a fraction of a corporation. This entitles the owner of the stock to a proportion of the corporation's assets and profits equal to how much stock they own. Units of stock are called "shares."

Types
1.Equity
2.Futures and Options

Players in Stock Market
1.Company
2.Brokers
3.Traders
4.Investors

Stock Market in India
In India main players in the stock market are run by National Stock Exchange(NSE) and Bombay Stock Exchange(BSE).
https://www.nseindia.com/
https://www.bseindia.com/

 Governance
SEBI- Secuirty Exchange Board of India 

The Securities and Exchange Board of India was established on April 12, 1992 in accordance with the provisions of the Securities and Exchange Board of India Act, 1992.

The Preamble of the Securities and Exchange Board of India describes the basic functions of the Securities and Exchange Board of India as "...to protect the interests of investors in securities and to promote the development of, and to regulate the securities market and for matters connected therewith or incidental thereto"
Find out more:
https://www.sebi.gov.in/

NSDL
NSDL, one of the largest Depositories in the World, established in August 1996 has established a state-of-the-art infrastructure that handles most of the securities held and settled in dematerialized form in the Indian capital market. Although India had a vibrant capital market which is more than a century old, the paper-based settlement of trades caused substantial problems like bad delivery and delayed transfer of title, etc. The enactment of Depositories Act in August 1996 paved the way for establishment of NSDL.
Using innovative and flexible technology systems, NSDL works to support the investors and brokers in the capital market of the country. NSDL aims at ensuring the safety and soundness of Indian marketplaces by developing settlement solutions that increase efficiency, minimize risk and reduce costs. At NSDL, we play a central role in developing products and services that will continue to nurture the growing needs of the financial services industry. In the depository system, securities are held in depository accounts, which is more or less similar to holding funds in bank accounts. Transfer of ownership of securities is done through simple account transfers. This method does away with all the risks and hassles normally associated with paperwork. Consequently, the cost of transacting in a depository environment is considerably lower as compared to transacting in certificates.
NSDL provides bouquet of services to end investors, stock brokers, stock exchanges, custodians, issuer companies etc. through its network of more than 276 Depository Participants / Business Partners. NSDL has been able to win the trust of crores of investors and other intermediaries, thus standing true to its tag line −Technology, Trust and Reach. We at NSDL believe that ‘Every Indian should not only become an ‘Investor’ but a ‘Prudent Investor’ indeed.
Find out more:
https://www.nsdl.co.in/

 How to trade?

Essentials
1. PAN Card
2. Aadhar Card
3. Bank Account
4. Demat Account
5. Broker

 Every one planning to start trading in stock market should open a demat account. The demat account can be opened from any brokers(Major Brokers name and opening link is shown bottom of the page).

 Before Investing
As this is the matter of money you will not get profit from day one. There is a big chance of loosing money and less chance for getting profit. So the money you are bringing to invest should not be borrowed or loan or anything like that.....its my advice.

 Types of Trading


There are mainly 3 types trading(my personal and i used to do)
1. Intra Day or Day Trading
Intra day or day trading is a type of trading where the buyer or seller, buys and sells the stock same day vice versa.

 2. Long Term Investing
Long term Investment is a type of trading where a person holds his stock for long days (one year or more) and sells in a future date.

 3. Swing Trading
Swing trading or short trading is a type of trading where a person holds his share for short period(less than one month), and sells.

 Analysis and Selection of company-Stock
There is two types of analysis in selection of stock:
For Long term:-

 Fundamental Analysis
Fundamental analysis is a type of analysis where a companies qualitative aspects are taken in consideration.

  • Select a company
  • Go to company website
  • Reports
  • Investor
Study companies business,operations,management and everything from its starting till present.
My recommendation is to search in Screener. Screener is a website which gives accurate data on a company of its fundamental aspects.

 For Short Term:-




 Technical Analysis 
Technical analysis is a type of analysis where a companies quantitative aspects are taken in consideration.
My recommendation is to search in Trading View. Trading View is a website which gives accurate data on a company of its Technical aspects.

My Suggestions:

  • OHL Strategy-
  • Pivot Points
  • MACD
  • Fibbinocci
  • Moving Average-5,8,13 days
  • Volume
  • Trends
  • NR7
  • NR 4
  • RSI


Investopedia can help you to get it clear on above tools.

 #I have given above websites in order to do your research on company and selection of stock to be smooth. 

 My personal suggestions to do research a lot from Google on company. Money Control is the best platform as it provides discussions.

 Selection Broker
I recommend to select a discount broker.
Click here to get details on top brokers in India.
I personally use Angel Broking for my trading. Click here to open an Account in Angel broking.

 Click here for a good stock news updates website.
I KNOW THAT THE ABOVE INFORMATION WILL BE HELPFUL FOR YOU TO BE GOOD INVESTOR. PLEASE REFER MORE AND MORE BEFORE INVESTING IN ORDER YOU TO GET MAXIMUM OUTPUT.

 IF YOU HAVE ANY DOUBT ON STOCK SELECTION OR IN ANY PART OF ABOVE SAID DETAILS KINDLY WHATS APP ME TO +91-999-53036-85
Suggestion for improvements and comments can be done below or mail to ginishtomsabraham@outlook.com
To be Continued.....

THIS BLOG IS EXPLAINED ONLY A PART OF TRADING. AMENDMENTS WILL BE DONE BY THE AUTHOR DAY TO DAY

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