Published Jun 20, 2023
3 mins read
514 words
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Economics
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Finance and Accounting

Want To Become Billionare- How?

Published Jun 20, 2023
3 mins read
514 words

Introduction to Stock Market: 

Stock Market is platform where investors, traders, domestic institutional investors, foreign institutional investors, brokers and small individual investors buy and sell shares, bonds, commodity and other securities. There is no capital amount limitation to invest and trade in stock market. There are no restrictions to earn money.

There are many ways to earn money unlimited in stock market. These are the few points listed below to earn money In stock market:

A) Intraday Trading: These traders buy shares and other securities on the opening bell of the stock market and sell before the closing bell of the trading session on the same day.

These traders must be aware of the upward and downward trends of the stocks they are going to trade. They investigate the stocks in all spheres especially latest news of those stocks, annual reports and any corporate announcements.

Common Indicators used for intraday trading: 

  1. Moving Averages: It is a simplified view of the price changes to get average price at customized intervals of time. It also used to analyze the support and the resistance level of the chart.
  2. Bollinger Bands: It is one of the popular indicators widely used my most traders to evaluate the correct price for the stock to buy and sell. In this chart it comprises of three lines one is the moving average line and the other two are the upper and lower price of the share
  3. Momentum Oscillators: It is used to analyze the unrelated or sudden change in the share price over a specified time period. 
  4. Relative Strength Index:  It is used to establish the over brought and over sold price of the shares. It is a momentum based indicator. RSI value of 70 or above is over brought and below 30 is considered to be oversold. B) Futures & Options:  it is major type of stock derivatives trading in the stock market. Generally, it is contract between two parties (buyer and seller) for trading shares at a predetermined price on the later date. Such contract reduces the risk in stock market trading by locking the price.

While trading in futures and options the traders have to fix a future value of specific percentage to maintain their position as buy or sell in the market.

Example: let us take TCS which is the leading it gain in Indian stock market here the value of TCS futures is determined by the value of the TCS shares.

The main point is that the traders in futures and option trading cannot have ownership of those financial instruments.

C) Swing trading:  These traders’ focuses smaller gains in short term by doing continuously can achieve a huge growth. They hold stocks for few days till they achieve the expected target price.

The average length of the swing trading more than 5 to 14 days.

Here not only gains they can expect loss also and it is kept small percentage. They can minimize their loss by using stop loss while buying the shares.

Swing traders can deliver large profits than intraday traders because the time plays the role.

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