Basic Keywords Of Stock Trading

oie_GyfJZsBH9SRq

If you are thinking involve in the share market then you need be familiar with all the necessary aspects related to share market. Before taking any attempt you must work on secure feature of share trading like stop loss and option trading. Many investors think that stock trading is like a smart business, but they are correct in some aspect, stock trading not only business, but it is an interesting game where trader needs all the necessary information required, which based on that trade so that you make own tips like as Stock Tips, Free Nifty Tips and Free Equity Tips, these tips play a vital role in your trading. These tips made from deep analysis of share market and economy. Every basic keywords trader should know its meaning and how use it?
For knowing these keywords trader prefer many stocks related website and magazine to get the stock market glossary.

We are presenting some important keywords which are essential to know for every trader.

The Share

The share is a part or portion of profits or loss for a company who provide all their shareholders, this larger amount which is distributed among all the people.

As the percentage of share define ownership of the company.

Share Features

A share has numerous features that a trader must familiarize with it. The chair features are shown below.

Last Price

The price is the last price on which share was traded at. Basically, it is the final price. In the trading concept, last price may be important if the market is on upward condition.

Bid Price

The Bid price is the price on which you can bid for sell your stock.

Ask Price

The Ask price is the price at which you can buy your stock. There is a small dissimilarity between both the bid and the ask price is trading process i.e. Sell or buy.

52 week high

This is a level which shows the highest price of the share arrive at the last 52 weeks.

52 week low

This is a level of price which shows the lowest price of the share arrive at the last 52 weeks.

Stock ticker symbol in trading

The ticker symbol represents an abbreviated name for a particular company. It may be the up to 1 to 4 letter symbols. If you want search a particular company online in NSE or BSE exchanges then these symbols play a very helpful role.

Example

PRABHAT = Prabhat Dairy Limited

VOD = Vodafone

The ticker symbol is frequently necessary when searching for a specific share. It is particularly helpful when entering symbol to find shares speedily into a watch list or portfolio.

Trading Volume

The volume of a share defines the total number of trades of a particular share, it shows how many times the share has been dealing with the day.

Average Daily Volume

As the name shows an average, it represents the average daily volume, which calculated over a time period of 90.

It’s clear trader’s stock strategies such as If a stock has an average volume of 5 million it represents 5 million shares are traded on average each day.

The upper the average daily volume represents increase the liquid ratio of the stock. Here in this condition they share is more constant as more traders are ready to trade when you need to get.

The low volume share should be ignored when obtaining a chair as it can answer in liquidity troubles. This is becoming because when you reach to get rid of the chair and nobody on the other end would like to obtain it then the price can simply fall up to 2%, if not more, before you can obtain rid of it.

Why do stock prices fluctuate?

The main reason behind the movements of the stock price for a particular company depends upon supply and demand.

A share price generally goes increase and depends on many reasons which are

  •     A company performs well and exceeds hope of the public. In this case public may make profits with huge amount.
  •     Lots of traders want to purchase the shares to obtain the rewards of the earnings. Here the demands of share will increase and the price goes up.
  •     Not many traders would like to sell their shares. They hold shares for a long time. There are not various shares left.

A share price frequently goes decrease when…

  •     If the performance of the company is unsatisfied compared to the hope of the public.
  •     Lots of traders want to sell the shares, they do not hold for a long time. This situation can become when market service.
  •     Nobody interested to buy the shares. This show bade condition of the company, sometimes a company becomes bankrupt then no one buys its share.

Stock trading and currency trading are same in many aspects, but most of time currency trading process on an international level or forex market. To make money in forex market trader needs superior Forex Tips and Currency Tips basic concepts of forex market.

Leave a Reply

Your email address will not be published. Required fields are marked *