Equity trading

Equity Trading

In finance ,equity trading means to BUY or SELL company shares.Shares can be bought or sold through stock exchange .
Some of the worlds top Stock exchanges are:

1. NYSE
2. NASDAQ OMX
3. TOKYYO stock exchange
4. LONDON stock exchange
5. HONGKONG stock exchange

................................. And more

BSE ( 1875) and NSE (1992) are Indian Stock Exchanges.More than 4700 companies are enlisted in BSE and 1200 in NSE.

In these exchanges entire process is order driven , which brings about enhanced transparency.Buyers and sellers remain. Anonymous.

Investors bid for stocks and sellers ask for specific price, sale occurs when bid and offer match.

Company enters  the market via IPO, it is the first time stock of a Pvt. Company is offered to general public.IPOs are issued to generate capital.After that shares are traded freely in open market and money is exchanged between buyers and sellers.

For successful equity trading ,it ought to be treated as part time or full time business and not at par with hobby. Commitment is necessary .

One should become a student of market , each passing day he/ she must remain focussed on learning more.

Risk only what you can afford to loose

" HOPE FOR THE BEST AND BE READY FOR THE WORST"

Omniscience and infallibility in stocks

No one can be know all.

We can learn from experiences of successful stockists but take what they say with a pinch of salt .

They loose too, and just don't advertise .... Don't follow blindly ,rake your own brain.

It has various constraints , u have to work in controlled environment ,Numerous factors drive the market viz.

1. Inflation
2. Economic strength 
3. Change in management 
4. Employee lay off 
5. Interest rates 

And the list goes on 

One can never predict the market, we can bet on a company based on its EPS, P/E ,beta and other technical factors....

Infallibility is  impossible .

Stocks Vs archeology

In archeology , Unknown is uncovered , thrilling it is , it keeps u going,arrests your mind and makes life interesting.

 In stocks , u uncover the thrill of making money ,u don't have to deal with muck and dirt ......
 Clean money making it is  , what is needed is : just a little bit of research.

In archeology , ancient artefacts are unearthed, u scratch a little u can unearth money in stocks.

Internet has made it too easy.

Sitting at home ,u run your own business , make your own decisions ......
Point is u can do this while on the run ....and it gives u exquisite pleasure .

Instead of opening boutique or beauty parlour, instead of joining kitty parties .....that is mostly considered female domain.......u can go into stocks....it gives a unique High


Finance is male domain , don't dwell on it , it's not an idiom :-))

"Can't imagine taking investment advise from a woman : That's the crux of matter "

 Don't let it bother u ......
Or Deter u ...

Tips for long term investment in stocks

What can you do ?

My proposal is to buy 3 solid companies' shares, Then let them grow.
Decide your profit,say 20%, when mark is reached ,SELL

Keep your profit aside.

And with time you should be able to buy with profit only,take out initial capital.

Say companies like tobacco promoters  , have good potential as people will never stop smoking !

CEMENT is a good bet,construction will go on.

Energy is optimal choice, so are banks .....list goes on