Basics of Stock Market Trading in India

basics of stock market trading analysis

There is no such rules and short trick in the stock market for profit maximization trade. One has to learn the basic fundamentals before start trading. Therefore, basics of stock market trading in India is certainly a quite vital subject. Investment is a key to safe and secure future. Everyone wants maximum profit from their investment and that should be the primary objective.

For investment, one has to collect data regarding market, price movements, company details etc. After that, one has to invest the money in a profitable stock. Basically, there are two kinds of analysis, Fundamental analysis, and Technical analysis. In short, fundamental analysis interprets the overall health of a company while technical analysis mainly shows the market movements-upward, downward.

Basics of Stock Market Trading in India- Types of Analysis

Basics of stock market trading in India-types of analysis shows below:

Fundamental Analysis:

Fundamental analyst collects information about a company’s data, such as, about the company, growth plans, profit, balance sheet, PE ratio, ROE ratio, product, innovation, export-import details, demand forecast etc. This analysis focuses on the tangible and intangible aspects of the company to figure out the accurate value of the stock. A chart of fundamental analysis is as follows:

Basics of stock market

Technical Analysis:

Technical analyst mainly works on the price movements, market fluctuation, price chart pattern. This focuses on the internal market sentiments, price movements. The chart of technical analysis shows bearish and bullish market movements. Here bearish indicate that the market is up trending, the bullish market shows the market is in the downtrend.

basics of stock market trading in India

Basics Points of Stock Market Trading

In this context, one point should be noticed that fundamental analysis is a quite long-term process while technical analysis is a short-term process. One should collect and analyze company and market data thoroughly in order to chase market movements. In technical analysis, a huge amount of data about a company is not required at all. One can track market price movements, the relation between buyers and sellers only by analyze some of the basic things.

One and only work of technical analyst is to follow the movements of buyer and seller, price chart movements. Anyone with minimum basic knowledge of market movements can do trading by technical analysis. In case of fundamental analysis, one needs to be knowledgeable.

There are some cautions which you should keep in your mind while you are trading. You should have some minimum information and knowledge about what you are doing with your money. There is no space for blind investment, it can take you to the loss. Therefore, do your research properly and don’t invest in what you don’t understand. Ofcrouse, you should have patience because it is one of the main keywords in trading. Basics of the stock market trading in India is quite an important topic here.

Ankita is a graduate in English language and she has also done her MBA from the Calcutta University. She has a high knack in the stock markets and now she is testing her skills in content writing. She can become a real asset to the STOCKMANIACS team in the days to come.

3 thoughts on “Basics of Stock Market Trading in India”

  1. Dear Indrajit, nse stock screener in this website has a pitfall , please go through this issue thank you.
    1) The 0=H/0=l levels are updating at around 9:30am, it would be easier for us to pick right stock if gets atleast updated by 9:25am.

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