Equity basics as Investing!

 

Equity basics as Investing!

The equity market is the place where buyers and sellers meet and committed to the same companies' stock, price, and quantity of that stock to buy and sell. A stock may be bought or sold only if the company is listed on an exchange and this place is known as Stock Exchange.

There are two types of stock exchange:

NSE(National stock exchange): It is the largest stock exchange in India, the benchmark for this exchange is Nifty.
BSE (Bombay stock exchange): It is the oldest stock exchange in India, the benchmark for this exchange is Sensex.

Important terms we should know before entering to equity investing:

Pre-opening session

The pre-opening session is the time in the stock market which has been innovated by NIFTY AND BSE to decrease the volatility of the stock market throughout the trading session. This is the time from 

9:00 am to 9:15 am, the regular time of the stock market in INDIA is from 9:15 am to 3:30 pm in which anybody can do buying and selling. The preopening sessions are basically for settling down the stock price on the basis of demand and supply of particular company stock. 

Broker

The broker is the one who opens your Demat account or trading account and he takes brokerages(commission) and taxes for the trades you take in either commodity or in stocks. The brokerages vary broker to broker.

Demat Account

Demat account is your trading or delivery account you required compulsorily, this is the account used to hold your shares and securities safely in electronic form. Every person required a Demat account who wants to deal with shares and securities.

Bear Market

A bear market is the downside trend of the market or the time when you can see each and every equity is giving negative returns.

Bull Market

A bull market or bull run is just opposite to bear market, this time most of the companies are giving positive returns and they are in an uptrend.

Average out the stock

This is the term we use in the equity market to average out the stock price for more gains or to minimize losses. Suppose you bought one stock at the price of 50 rs and now it comes down to 30 so you can have more of that stock to get a better average price for future returns.

Beta 

Beta calculate the relationships between the stock market as a whole and stock of any particular company, it basically measures the volatility of the stock with the index.

Trading

Trading is defined as the frequent buying and selling of securities for the purpose of swing profits, it can be day trades or short-term trades. 

Valuations

Many times you may listen to this word, it means the intrinsic value of any stock, in other words, the stock is cheap or expensive to buy.

Dividend

The dividend is the portion of the company's profit that is to be distributed among shareholders either quarterly or annually as per company norms. It is not compulsory to distribute dividends by all the companies.

Leverage

Leverage is the facility given by your broker in terms of extra money liberty to trade like you come with Rs 100000 and your broker gives you leverage till 500000 then you can take the trades till Rs 500000, but this is very risky please avoid it for safe play.

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There are 1000s of more terms which you should be aware of, I will create a special blog for that if anyone of you interested let me know in the comments section.

Equity a gamble is a myth

There are lakhs of people in this world especially in India who treated equities as a gamble game, I have done proper research on that and found that these people don't even know the real meaning of stock exchange they don't know the ABCD of this, they are just listening to these things from their elders and behaving similar to them. Equity market as investing is critical to understand and it required proper fundamental knowledge, expertise, and practice. If you invest your money without proper knowledge and expertise then only you are gambling with your hard-earned money. Anyone from us can become the master of it if he/she practices and put all efforts into it.

Equity required proper learning and practice

When you want the job and want to secure your future with pride than you do so many certifications take graduation degree with specialized courses do PGs do Doctorates in the fields you want to make your carrier then why you gamble with your money when you don't have any knowledge about the stock market. Making yourself expertise in the equity market is also planning for a bright and securing your carrier as it will give a healthy and wealthy umbrella for a lifetime.
There are so many terms, so many indicators, so many charts, so many theories which need to study, we have to make so many strategies, we have to study thousands of charts to expertise it.
Let's try to sit only for two hours in front of any business channel and then you will realize how experts give you calls, how they give you targets of stock prices and stop losses etc.
The passion and hard work we required in other professions the same or more we requited to become a good equity master.

Briefing

We will discuss each and every concept of equity in very detail form because this type of investing is not only investing but also has the capability to become your profession. Many of us do mistakes at initial points of investing only and then we book our losses and then come out of it or we don't want to take any risk, don't want to study, don't want to take the pain and start saying it as "speculation".If you are a risk-averse person and don't want to take the risk then you are taking a big risk to your life.
The stock market is considered a very important tool to run the economy of the country and the mirror of all the good or bad happenings in the country. 

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