Initially Learn Indian share Market Trading
- Types of Share Market Trading
- Methods of purchasing and selling
What is share market trading?
Share market trading means buying and selling of shares in online share market
Different Types of Share Trading
Mainly 2 ways of share trading.
- Online Share Trading
- Offline Share Trading
1) Online Share Trading
Doing share market trading with the help of computers, high speed internet connection and with online market trading and demat account is called Online Share market Trading. If you want to do online share market trading then you needs to have a computer, high speed internet connection and online stock trading account. If you are better planning to do the trading yourself then opening an online share trading account is advisable.
Mainly people use high speed online share trading who wants to trade themselves. Necessary of high speed broadband connection because market movement is very fast that why need a high speed internet connection to do Online Share Trading.
1) Online trading account – Initially open an online stock market trading account with any of the financial trading systems or bank like There will be small yearly charges but in fact latest trends a few of them are offering free accounts.
2) A computer with high internet connection but latest trends a few people do trading in an internet cafe. Due to go up in electronic prices the computers are available at reasonable prices in the market. If you have electrical problems then you also require having a good battery backup inverter.
These days you can get high speed internet enabled on your android cell phone whose sufficient speed will be doing stock trading and also the internet GPRS charges are very nominal. Also high speed broadband internet connection is available.
3) Following are successfully opening the online stock market trading account, you will get the nick User Id and password with the help of which you can login in online trading account and trade yourself.
4) The stock trading system which you opened trading account will help you in the beginning about how to use the online trading system.
But in fact you can request for a show of their trading system previous to you open the trading account with them.
Initially you are familiar with the system, and then you can trade itself at your office or in the internet café or home.
Benefits of Online Share market Trading
1) Trading in the stock market no need to depend on any broker or adviser or anybody else to put the order or to square off your order. In short you are the owner of your own to do trading (purchasing and selling) of shares.
2) Its more convenient, reliable and you can take your own decisions by real analyzing or seeing the market trend on the computer screen where you are sited instead of calling the adviser or broker all the time.
3) It is not possible or practical for an adviser or broker to update you all about the share market, Latest news which will affect the share market trend. Because he may be having a lot of other live customers like you and even if he updates you it would be late. But if you are a beginner trader we will suggest you the best leading stock advisory company. Trifid Research is the best advisory company in he is always support customers what you want. He will provide Stock Tips, Commodity Tips, Option Tips and Nifty Tips and many more.
Latest News would have been affected the related sector or share market. So if you are doing yourself online stock trading, then you may save yourself from large disasters by online booking profit or by upcoming out of the stock.
4) You will find the latest updates and news on the various website examples Trifid Research will provide daily News and better support and resistance level for a different segment like Stock Tips, Commodity Tips, Option Tips and Nifty Tips and many more. Also on your trading system and most of the information will be free of cost.
Please note – “Always keep in mind share market always get affected by the suitable news. So find the latest updated or be in always touching with the latest news. This will always benefit you.
5) By doing yourself online stock trading, you can judge and see where the stock market is titled by seeing yourself different online graphs, which is not possible if you are trading via a broker or adviser. A few online trading systems have included graphs in their system, so your job is to now add those graphs and proper check the status of latest market trend (or share) it totally depends on your market analysis you can take better steps towards winning trades.
6) The entire your transactions and linked documents can be seen online and can also be downloaded daily and weekly to your Personal Computer (PC) without depending on your advisor or broker.
You can also check the daily basis status of your demat amount via your online trading system.
2) Offline Share Trading
Doing share trading with the help of an adviser or broker or through telephone call, SMS is called offline share market trading.
In other words stock market trading will be complete by another person on your behalf totally based on the better instructions given by you. The other person would be an adviser or broker.
The adviser or broker will do purchasing and selling of shares on your behalf totally depending on the guideline and instructions given by you. So in offline share trading you don’t require to have a computer, high speed internet connection but you require having the offline demat account.
Different methods of purchasing and selling of shares
Here are mention two methods of purchasing and selling of shares in Indian share market.
- Market Order
- Limit Order
1) Market Order
When you set purchase or sell price of a stock at market rate or choose a better market segment option in trading terminal then the share price gets executed at the latest market rate. The market order gets executed instantly at the latest available price.
In market order the shares will get executed at the most excellent latest market available price. A market order is applied if you would like to execute your order very quick and at available prices.
If you wish to purchase or sell shares at any particular price then market orders is not right for you then have to go for limit order.
A Market order is for those who want to purchase or sell instantaneously at the latest available price.
2) Limit Order
It’s completely different from market order. In limit order the purchasing or selling price has to be described and when the share price comes with that price then the order will get executed. But following it’s not definite that the price will come to your limit order and the order gets executed.
In other words in limit order the particular price is mentioned and stock market trader or investor stays till the stock price achieved that price and once the stock price achieved that price then the order will get executed.
Stock market Day traders have to take all precaution while applying limit order, particularly who make use of margin amount In day trading in the stock market, because you have to close the entire your transactions previous to 3:30 PM and if in case the price doesn’t achieve to your limit order then your order will be open (pending) and then you have to go more penalties.
Importantly stop loss order and limit order are applied together to reduce the risk.
Stock Market Stop Loss Order
Stock market stop loss orders are applied to decrease or reduce the losses. This is the most important term particularly if you are doing intraday trading (day trading).
Stop Loss order as the name point out this is applied to decrease the losses.
In Stock market order of stop loss the target price has to be declared, by the live trader, and once the price achieved the target price the order get executed with the top price existing between the limit price and the trigger price.
Example – Assume the trader parched the RIL (Reliance Industries) at Rs 1000.
So he puts the following order to defend his losses.
The market limit order of 990 Rs and stop loss trigger price of 985 Rs
So if the RIL stock price begins going down and if it reaches 985 then his trade executes with the latest market existing price.
2) Offline Share Market Trading
Doing share market trading with the help of an adviser or broker or via telephone or SMS is called offline share trading.
In other words share market trading will be done by another person (adviser or broker) on your behalf based on the right instructions given by you. The other person would be an adviser or broker.
The market adviser or broker will do purchasing and selling of shares on your behalf depending on the better recommendation or instructions given by you. So in offline share market trading you doesn’t require to have a computer, high speed internet connection but you require having the offline demat account.
Different types of Share market trading
1) Intraday (Day) trading
2) Delivery trading (it is also called as investing) is the 2 major types of share trading.
1) Intraday (Day) trading
Purchasing and selling of shares on Intraday (daily) basis is called day trading; this is also called as intraday trading.
At all you today purchase you have to sell it today OR For all you sell today you have to purchase it today and it is very important during market hours that is amid 9.55 am to 3.30 pm (Indian time).
In Intraday (day) trading, Adviser or brokers give margin to do trading. Means you get more amount for Intraday (day) trading.
Assume if you have Rs 10,000 in your account then you can purchase and sell shares worth Rs 40,000 (four times more – mainly the trading margin amount depends on your adviser or broker).
So if you use trading margin amount for Intraday (day) trading then you have a square of your shares previous to closing of market whether you are making loss or profit or irrespective of share price.
Note – If you don’t use margin amount and stock trading only with your existing amount then not require squaring off your positions.
Example – if you are buying a few shares and the share prices fall down then you can hold them and take delivery and sell them whenever the share prices rises.
Essential note – Beginner Trader should not begin by Intraday (day) trading as it is more risky.
Intraday (Day) trader needs much knowledge including share, global markets, the entire share market, latest news and many more parameters.
For more information please visit at Trifid Research will provide Stock Tips, Commodity Tips, Option Tips and Nifty Tips and many more.
2) Delivery Trading
In Delivery market Trading, as the name says, you have to get the shares delivery and after receiving these shares in your demat account you can sell your purchase shares at anytime or you can hold them till date you want, without any restriction).
In delivery market trading you require to have the amount needed to buy share in other words you don’t get the margin amount as you get in intraday (day) trading
Eexample – If you would like to purchase 10 shares of RIL (Reliance) at price 1200 than you should have (100×1200) 12,000 Rupees in your account; once you bought these shares will get deposited in your online demat account (after intraday (day) trading and two additional days). After that you can sell these shares when the price of these shares rises or else you can hold them as long as you want
Note – Initially you have to purchase and sell. You can’t sell previous to purchasing in delivery trading while it’s possible in Intraday (day) trading which is called as short selling.
Technical and Fundamental analysis in Indian Share Market
Basically the trading and investment decisions are done with the help of 2 important tools.
- Fundamental analysis
- Technical analysis
Above are mentioned 2 basics of tools are widely applied by share traders and investors but differs analyzing from investor to investor or from traders to traders.
Initially let’s see what mean of these tools :-
1) Fundamental Analysis
The name own indicates that this analysis is completely based on companies’ fundamentals.
Mainly the fundamental analysis is applied to analyze the fundamentals of a company for midterm to long term investment or even a few analyst uses for short term investment particularly during the declaration (announcement) of quarterly results.
Similar to if the company is going to declare the superior quarterly results then investors purchase them previous to the results declaration (announcement), Similar to one month previous to, and sell them as the price rises after the result declaration (announcement).
Here are used the some fundamental parameters to analyze and forecast the company’s latest and future market growth. Like,
- What is the company all about?
- What are the Company’s future plans and expansion?
- How is the Management – like board of directors, CEO, chairman etc
- The quarterly analysis, annual and half yearly financial reports.
- The mainly companies participation in foreign collaboration/ investment or stake or manoeuvre etc. And finally totally depending on these factors and lots of others, fundamental analysts have ready definite fundamental ratios which will be used to predict the company’s latest valuation, future growth prospects, its debt and a lot of more things.
Following are Fundamental Ratios like –
- Book value
- Working capital ratio
- PE (price to earnings) ratio
- EPS (earning per share) ratio
- Return on equity ratio
- Debt equity ratio
It is based on following terms and other fundamental terms, the analysts forecast the market movement whether it will be going up or fall down in the upcoming future.
Always superior fundamental analysis is utilized for long term era. To better understand about these ratios and how to choose your best investments please go at Trifid Research they will provide Stock Tips, Commodity Tips, Option Tips and Nifty Tips and many more.
2) Technical Analysis
Technical analysis is 2nd analysis tool for day trading or for short term.
Always fundamental analysis is used for a long term investment analysis similarly technical analysis is made for short term trading or Intraday (day) trading.
Nothing for technical analysis is but charts study made of 4 important numbers following are open price of the share, low, high, and closing price of the share.
Technical analysis also make use of support and resistance levels, technical indicators, volumes and other parameters which are valuable to better analyze the share price movements in day trading or in short term.
There are numerous factors and terms used in Technical analysis are discussed at Learn Fundamental of Technical Analysis
Types of Trading and investment
Intraday (Day) trading
Purchasing and selling of shares on every day basis based on latest market movements, technical analysis, on Global market movements and previous volumes and a lot of other related parameters are called as Intraday (day) trading.
If you are interested to learn more about Intraday (day) trading then visit Trifid Research. We will provide Stock Tips, Commodity Tips, MCX Tips and Nifty Tips and many more.
What is the meaning of investing or Short Term Trading?
Share market trading done for one week to a couple of months is called short term.
Mainly technical analysis is used for short term trading.
But as it there is no any fixed criteria for trading a few traders still do short term trading based on Company’s announcements, of quarterly results, news, news of acquisitions and merger etc
Share market trading completed from 1 month to a couple of months, say 6 months to annually or two years are called midterm trading.
Company’s announcements of quarterly results, Fundamental analysis, are the basic parameters used for midterm investing or trading. A few technical analyses even make use of indicators and technical charts for midterm trading.
Long term Investing
A couple of years Investment is called long term investing.
Long term market investment may continue from annually to 10 years or even more.
Analysis of Long term is purely based on fundamental analysis of the company.
But it doesn’t mean that once you do invest for 5 years and the fundamental analysis and forget
The financial results of quarterly or half yearly results of the company must be monitored and revived how the company is performing.
If you are interested to learn more about this then please visit at How to analyze the company before investing.