Hello Friends, Today I am going to show you how you can make profits with minimum risk...
First you have to know what is stock market ??
Many people think that this is a path of gambling, but with proper knowledge you will show that you can take away your expenses.
For the beginners, first you have to create a Demat account by which you can start investing and trading.
In stock market you have two options, either you will select investing or other is trading.
In investing you select stocks or shares of a company and when company will make profit you also get the profit amount of your shares.
But in trading you don't have to look what is the performance of the company.
In trading there are two exchange that is
NSE/BSE (NATIONAL STOCK EXCHANGE / BOMBAY STOCK EXCHANGE )
In trading two main things are there that is
Nifty = 1 lot contain 50 shares
Banknifty = 1 lot contain 25 shares
If you are a beginner go ahead with nifty because nifty chart is not too much volatile than banknifty.
Volatility = Chart up and down movement
There are 3 trends in chart reading that are 1. Upward Trend
2. Downward Trend
3. Sidewaya Trend
At first you have to identify which trend is showing in the graph.
After you will buy put or call option on the basis of your analysis.
For example if nifty is on 17500 and your analysis says that is will go up to 17600 then you will buy call option on 17600
And if you think that is will go down to 17500 like 17400 then you will buy put option on 17400 .
Everytime you must remember a thing that do not believe in numbers you just came here to gain some knowledge of stock market . After getting knowledge definitely you will earn good money .
There are several methods of trading depends on brokers.
But mostly you will find that in trading two options are there that is
Intraday and the other one is carry forward or delivery.
In intraday you will buy the call/put options according to your analysis but after 3:05 ir 3:10 (depends on broker to broker) your order will automatically square off or closed.
And if you select carry forward or delivery option then you will carry this order till expiry but this may contain some risk because if market will gap down next day you may have losses.
For beginners first gain some knowledge then do paper trading and after this start trading with minimum risk and good profits.
If you are a beginner then first you have to learn about technical analysis and chart reading.
Resonance and support , risk reward ratio .
After taking some knowledge you have to start paper trading rather then directly start trading , if you do this you will ace some losses.
I think this knowledge is good enough for you that how you start your journey in stock market .
I also have some personal experience in this and i will definitely share it with you
Thank you .
I hope this will be helpful for the readers .
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