Very Basics Of Share Market

Discussion in 'Beginners Guide' started by kamla, Mar 25, 2007.

  1. kamla

    kamla New Member

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    Dear all,

    I am very new to share market . So first of all i want to clear my mind about very basic terms like SENSEX,NIFTY,MIDCAP etc . So is there anybody who will give me some reference to start from .

    Thanks
     
  2. suba_stocks

    suba_stocks Member

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    please go to website www.google.com and type... NIFTY defination... and click search you will find more than required explanation...same way you can find all answers to your basic questions.

    suba
     
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  3. hellmet

    hellmet New Member

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    That was an amazing reply Suba. It helped me a lot :rolleyes: .
     
  4. paisewalla

    paisewalla Member

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    Hey hellmet, that was easy. But subaji, we are damn serious, though i have got through all these terms, opened an demat account and very foolish I even subscribed for an sms tip which i don't even understand and lost money.

    For example take this tip of today:

    "Sell Tata Tele (M) with stop loss above Rs 28.15 for a target of Rs 26. This is a day-trading recommendation."

    what does that really mean. I can't do day trading even after reading some literature on it. I just now invest in long term. Some times I do day trading without understanding anything. I just buy a stock I think will go up in morning and sell it in afternoon or before closing time to book profit but only at market price. I don't understand this stop loss concept of buying / selling. First I had an ICICI account and now i have a sharekhan but this people are unable to help me to day trade. I came here to find advice on this.

    It has been only few days since I joined this. I am rather going through all previous post to find anything that will explain this. I can't find a proper way to ask whom and in which post this simple query (for all those senior of forum). For me its a big question:confused:

    PW
     
  5. suba_stocks

    suba_stocks Member

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    my dear ....i said that because ...if u try something by your own ..you get many things .

    please look at .. http://www.nseindia.com/ for nifty.
    and also ...www.bse.com

    suba
     
  6. suba_stocks

    suba_stocks Member

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    please....don't follow tips ...watch cnbc for knowledge purpose....go through moneycontrol.com . to know some more things...also ...http://www.investopedia.com/ for indepth learning .

    1)fundamental analysis of company ..(atleast basics )
    2) Technical analysis......candle stick methods a must...along with charting software and cetain indicators like moving av,rsi , adx ..and lots more.
    3) fibonic methods of trading
    4) ganss methods
    5) intraday trading strategies.
    6) long term trading strategies.
    7) swing trading techniques. .....etc ....

    how to trade (invest) is something you will learn with time for which you have to be in market always.

    you should know the reason why your are doing it ..that is buy or sell,
    also ..you should know why the trend is in up or down ward direction...along with nifty and sensex corelation.

    at what point one has to enter and at what point one has to exit ..(which is a probability only.)

    impact of world market on our market...is always to be taken into consideration.

    for all above things ..you need to read books ...and also follow this forum

    lastly ....take your own decision.... no one can be sure of market.

    i learned alot in this forum..stil learning only.

    suba
     

  7. paisewalla

    paisewalla Member

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    Thanks Subaji, for those words of wisdom.

    But, I am still at the question of the tip,

    "Sell Tata Tele (M) with stop loss above Rs 28.15 for a target of Rs 26. This is a day-trading recommendation."

    what does it really mean and how do I implement it in online trading account.
     
  8. instaalert

    instaalert Member

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    Hi paisewalla,

    The recommendation tells you to sell the scrip at the market price and keep your stoploss (to reduce your loss, in case, the price goes up) at 28.15 and if the market goes down the price will go down to 26 during that day.

    The S/L might have been suggested at the high of the previous bar.

    I think this may clarify your querry.
     
  9. paisewalla

    paisewalla Member

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    thanks, I have interpreted this as below:

    1. I sell the scrip at market price.
    2. The SL should be 28.15 while placing this sell order.
    3. When the price reaches 26 I buy and squareoff the scrip.
    4. If the price goes up and above 28.15, a buy order is issued automatically to square-off this day trade.

    Please, let me know if I am correct from above.
     
  10. suba_stocks

    suba_stocks Member

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    Basics of Stop Loss Order :-

    Buy : Market Price < Trigger price < Order Price. (Trigger price entered should be greater than the market price)

    Sell : Market Price > Trigger price > Order Price. (Trigger price entered should be lesser than the market price


    market price is ...existing price of scrip at that time
    trigger price is ... stoploss trigger ..at this price your order is pushed into market...means your order is placed.
    order price is the price at which you will buy the scrip back to square off.

    remember trigger price ..is nothing but a signal to place your order when price is touched at trigger value with order price ...so your buying price is order price .

    suba
     
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