Equity market is the platform where the trades for company shares takes place and is also commonly known as the stock market. The process of purchasing and selling of company stock shares in a secondary market with the expectations to make profits from the differences in the purchase and sale prices is known as equity trading.
Trading in the equity market is becoming more and more common on an everyday basis. Many people and businesses today are seriously taking into consideration the idea of investing their money in the market with the expectation that they will be successful and earn enough and more profits from it. But what they fail to see is the other side of it. Sure, equity trading can make you successful but it can also pull you down. The field itself is extremely complex and highly unstable and if you are not ready for this, you should not dive into it. However, if you are ready for all the challenges then first try and understand these important aspects of equity trading:
- Trading Stocks: If you get into the field, you are sure to come across this phrase a million times a day. Here, “to trade” means to buy and sell in the financial market, which is in themselves marvels of technological efficiency. When it comes to buying and selling of stocks, the exchange is more like that of a flea market and that is why you need to understand how to bid and ask for prices. The buyer and the seller both set the stock price.
- Stock Prices: Stock prices always keep rising and falling and may seem like a strange mystery by themselves. While you are sure to hear about the influence of earnings on stock prices, they have a very little direct impact on the prices. This factor put together with the others just changes the balance of supply and demand. “Buy low and sell high” is the ultimate mantra of successful stock investing.
- Stop-Loss Orders: When the bottom falls out from your favorite stock’s price, a stop-loss order on a file with your broker can certainly help you. It instructs your broker to sell when the price hits a certain level so that you can get out of it before it falls any further and causes you more damage and loss.
- Trading Scams: Never be a victim of an investment scam. It is easier than most people think for a conman to con your hard-earned money if you let your guard down for even a short period. Investment scams can come in many different forms and the internet has just made it easier for these vultures to feed on investors. Therefore, always keep a lookout for such things; read up about the latest scams happening around you and always keep a backup ready in case of emergencies.
No, don’t get overwhelmed by all this. And don’t quit now. If you have made up your mind, then do not step back. Why? Because we are here to help you out and guide you through it all. We are one of the leading financial trainers in India who provide equity market training and trading strategy in equity markets in Mumbai. We offer classes for students, analysts, and anybody interested in the field and want to build their knowledge. Join us today!