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Step 3

Hey All,      I hope you would enjoyed and understand the previous blogs. You would have noticed the change in the title. Yeah!!! It says that we are going bit deeper in to the topic.     As of now we have seen (I hope) almost all basics of the equity market from the beginners perspective. Whatever we have seen till last post all were related to the Equity cash market. Today we are going to see about the segment called "Derivative" in equity market. Derivative Market:       Values for Derivatives is decided based on the price of a stock. Derivative market have two important things to understand, they are Futures and Options. Futures: Value of Future is derived based on the price of the stock. Some times there might be a difference between a stock price and Future price, it depends on many factor. Futures are available only for a contract, we can't hold it for a long term or beyond contract. Futures will be available only in l...

Glossary for Trading

I hope we can use this post for referring the technical terms that is used frequently in our trade related blog. CMP - Current Market Price Target (TGT) - Price which the share will reach Stop Loss (SL) - Till how long we can hold the share if the price dips from CMP TSL (Trailing Stop Loss) - Moving the SL to minimize the loss or maximize the profit. Go Long- Buy the share Go Short - Sell the share after or at a given price. CTC - Cost to Cost (Same as your Buy or Sell price) BTST - But Today Sell Tomorrow STBT - Sell Today Buy Tomorrow Exit - Exit from the specific trade Intraday - Trade is valid only for a given day. Positional - Trade is valid till it reach target or stop loss. We will keep adding the terms as we learn. Please feel to pour your comment, so I will modify the blog accordingly and we can make sure all are in same page.

Baby Step 2

Hello Buddies, I hope you have enjoyed the part 1. Let start the step 2 with our research word which we took as a home work " Short Selling " Research word :  Short Selling. Key for research word: Selling the share which you haven't bought . Short Selling  We all know that we can buy shares and sell it later for the higher price, so we will get money in our pocket. Have we ever think of selling the shares first and buying it later? Will be able to do that in reality? Absolutely Yes, we can sell any shares even if we don't have any in our account in technical we call it as "Short Selling". Let us see a example and where we can apply it: There is a share of company which is trading at 100 rs, you identified that the price of this company will go down from here in this case we can use Short Selling to make a profit. --> Sell 100 shares at 100 rs --> If the price went down 2 rs and share is trading at 98 rs, now you can buy. --> S...

Baby step 1

Hello Dears, How are you? I know it has been more than year since I have blogged. I hadn't been idle but learning new skill. Now you would have an idea that what I am going to share with you now. Yes, I can hear your mind voice saying, yeah man it will be about your new skill?  yes you are 100% correct. Before getting in to the topic, I would like to ask you a question, do you like to earn money apart from your salary? I mean secondary income. Most of the people answer would be "BIG YES". Then you are on the right post. Here I am going to share my basic insights, about my newly learned skill " Share Market (Trading) ". So Guys, please don't confuse between the terms called  "trading" and "investing". Whenever and wherever you see money as the output, there is always terms and conditions included in tiniest font with * on top of it. Let us get on with the topic. Basic terms (differences) between  Trader vs Investor . ...