8 Things About Stock Market Must Know Before Investing

By Abhishek katkar
8 Things About Stock Market You Must Know Before Enter

8 Things About Stock Market You Must Know Before Investing

Important Things About Share Market

Here i am going to tell you some important and effective things about stock market. most of new investors and who are thinking to enter in market are unknown for this things and which helps you to keep in positive state to take most advantages from market. so lets see which are those 8 things which you as a trader or investor must know before investing or during investing and trading and keep in mind

1.Intraday Stocks

Remember one thing is that not all the stocks shares are available for intraday trading and also STBT and BTST from market so before trading confirm it once that the share you can buy or not for trading . How To Do Intraday On Smart Phone

2.Additional Margin/ Exposure

Additional margin is extra amount which your broker gives you every day as per your amount in trading account and also as per company which you want to buy for trading.

The exposure has 7 - 8 times of your amount or may be it will more. This margin offered by your broker is different for Nifty-50 company shares and other company shares, also all broker offers different percentage of margins so check your extra margin limit.

FOR e.g Consider you having 1000 rs in your account and exposure is 7 times then your extra margin will
(1000 * 7 = 7000)
or more. so here you can buy shares of 7000/8000 rs keeping 1000 rs in trading account.this is just example.

If you want to do intraday,So when you are going to buy shares, then in actual you can buy no. of shares but you only pay your amount other is deducted from given margin to you.

So first before trading calculate your extra margin by multiplying your amount with exposure rate as per given by your broker and you can actually know how many share you can buy and also other charges. Then that will help you to set your trading profit margin.

3.Uncertainly Stocks Selling

if you buy a company shares and after some time you are in some rupees loss per share, that loss is current loss not actual loss because still you are holding that shares in your account just their price has decreased by some points, so here the price also can increase in some days or if you are in good stock then price will definitely increase. So now you just having current price drop in share price that does not means you have lost your money. But if you sell your stock/shares because of some decrease in price then you will get actual loss in your trading amount. keep this is mind always and dont immediately sell stock just wait for some period and then take decision.

4.Margin Pledge Facility

Pledging, is the process of using your asset (held shares in  your account )  as a collateral to make available a financial or nonfinancial facility. Margin is a concept in trading that allows investors to leverage, and invest in deals without assuming the full risk at the first stage. In Margin Pledging, the investor pledges his asset (shares in the Depository Account) in favour of the broker for taking  leverage benefits. Margin Pledge is a process of creation of pledge in securities held in a depository account of the customer as margin for making available margin benefit for trading in Cash/FO/CD segment.
Read More : What is margine pladeg facility

In other words, investor can take loan against theire held shares in his depository account for trading or any other immergancy purpose.

5.Over Confidently Trading

Some times you earn more profit in less time in day trading and you think you can do this every day and earn daily, but this is not right/true and also good because if you get profit in two three trading sessions and if you will have loss in one trading session, so there may be you can lost some of your profits or sometime all and that is true.So do not do intraday trading every day when you get an aportunity then and then only do. Also don't make it an everyday habit. At starting this is very risky and may be you lose your all money.

6.Safe Start : Delivery/ Positional Trading

At starting start with delivery trading because in delivery trading you don't need to know all things which has technical but in day trading you have to know at least basic technical things. (like technical chart, price, momentum, direction, volume....). Delivery trading or positional trading keeps you in safe state because intraday can make your loss and you will lost your money which you could either put in any good company and get good profit , so investing start wisely.
How To Do Delivery Trading

7.Investing Is Better Than Saving

If you are saving your money and taking the advantage of bank interests then this is good but very limited because you cant grow your money in bank and you need minimum threeshold amount,and wait for some time and after all this you will get the interest and that is also limited because percentage is less. But if you put that amount in good companies and hold for some time then you will get good profit as compare to saving interest and time period and here you can enter and exit any time as per your decision and can make changes in your trading and investment to earn good money but that you can't in bank. below see the companies and thier performance for few monts :
Stocks That Performed Good In Pandemic Year
So peoples who want to enter in share market and who are new one keep you some amount in bank and some in investments this is good option to balance your financial state.

8.Easy Online Working System

Now because of digitalisation you can do most of things online so this process is online and now much easy to buy and sell shares from enewhere but then also some broker and agents operating accounts offline way and this is not too bad and wrong but your broker and agent can take advantage of it and may be your are unknown for this and they are making your loss. In this offline process you need to keep dependent on sub broker and that is loss for because that is slow process and you can miss good opportunities. So open your online de-mat account and operate it yourself and dont depend on anybody for it.

If you knows this already and have some more things then share with others which helps them trade more effectively.



Related Posts:

How To Do Trading Safely In Market.

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