subject: Indian Stock Market Tips By Bharat Business - Indian Business Rises Up [print this page] Indian market research company Bharat Business defines stock as a share or part ownership in the company that issues the stock. As for stock market, it is a place where the process of buying and selling of stocks from such companies take place. Stocks are the ladders or say the key points in stocks market. It depends on the economy of the country.
Due to the win and loss mantra, todays market has become very competitive and full of controversies. Earning money in the market isnt as simple as it seems. You might have heard incidents where a person might have made bundles of cash in the stock market. But thats just not practical. Stock market can fulfill your greatest desires or it can become your worst nightmare. Depending too much on stock market can ruin your whole life in no time. Thus, to become rich and make quick money, stock market is not the correct place to be in.
Stock market is a subject in itself. Understanding it and knowing how it works requires decent experience and learning. Investing you funds in the stock market isnt good enough. One needs to understand and develop the knowledge of where to invest and how much to invest. STOCK market is probably a place "Where the people with the money meets people with the experience and at the end of the day people with the money get experience and people with experience get money" Stock market is more or less a type of gamble, which everyone wants to play, reasons may be what so ever. But the investor who earns profit out of this gamble is only known as real Trader.
Lets take a look at the Indian stock market. Indian stock market is no doubt one of the most unstable stock market in the world. Millions of profits have been made out of it but the same is also on the other side. The only problem is that more than 90 % of traders in Indian stock market rely on tips given by amateurs and some so called technical analysts who claim 90% or in some cases 100% accuracy.
For average investors, it is very important to understand the concept of technical analysis and score profits in the market at the same time. Technical analysis is an incomplete study of statistical indicators, not one indicator is perfect, you have to use many indicators together in order to come to a particular conclusion that a stock is going to correct or is it going to fall.
1) The trader can call his broker on phone and place the trade via phone.
2) The trader can trade from home via internet, and place order by himself.
3) The trader can go to the broker's office and do trading from there only.
1st and 3rd are old methods, and can bring huge losses to the trader, the 2nd method is also dangerous, but less, if the trader knows technical analysis. The 3rd method can be good again if the trader knows technical analysis, but then the broker's trading software should have graphs for stocks, with technical indicators. Technical analysis requires a focused mind, technical analysis is not just making a cup of tea and then drinking it and then you become a renowned analyst, NO!, it requires patience, a focused mind, and surely a four letter word "PLAN". Without planning you cannot succeed in technical analysis it is the fuel which runs technical analysis, once you plan that you want to short sell Reliance the next trading day, you watch out for a breakout of crucial support level and the short sell it, during the intra-day and while short selling you also make sure that Sensex and Nifty also show weakness or are in clear downtrend.
Technical analysis is not a magic wand which you can swing and get instant results in a few minutes, instead technical analysis is a tool which can be used to enter and exit from stocks profitably, or in any financial markets, technical analysis lays a lot of weightage on volume. Make sure the stocks you are analyzing have enough volume so that your analysis is accurate on the basis of tools you are using. For example my thumb rule is based on atleast 1 million shares are traded on that stock to be listed in my analysis list, otherwise I don't do analysis on that stock.
by: Sharen Scott
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