Businesses are growing on a daily basis and there are numerous of them that are being incorporated globally. One of the most popular and lucrative businesses of all times is that of Stock Market Trading. There are high chances of losses and risks in the field, but at the same time, there is no more profitable business venture than trading. You can trade using multiple assets and one of them is stocks.
All about Stocks and Stock Trading
A stock is also known as equity, and it represents an ownership of a fraction of a company. A unit of a stock is called as a share. All the stocks of different companies are held by a stock exchange where the exchange between these stocks take place. Stock trading are regulated by certain government regulations to prevent investors and traders from fraudulent activities. Basically, there are 2 types of stocks namely common and preferred, and these are issued by a company to raise funds for proper functioning of a business. Stock Trading is the process of selling and buying of shares of a particular company. Stock trading focus on short term profits rather than long term ones, at the same time without proper knowledge, the entire business will be riskier.
1. Stock trading is a process of buying and selling of stocks
2. There are mainly 2 types of stocks trading namely active trading and day trading
3. To start trading, you need to open a brokerage account which can be opened via a registered broker
4. A point to remember while trading with any asset is that invest only that much amount that you can afford to lose
5. Try to build positions gradually
There are several concepts of trading that must be well learnt and understood from no less than a professional, before jumping into the business. ICFM is one of the most sought after and reliable Best Stock Market Training Institute in India that offers various stock trading certificate courses for all interested students.
Investing in Stocks
If your investment or trade is well planned, then there will be significant profit with investing in stocks. Although the market is unpredictable, but with appropriate knowledge and strategy, you can master the art in no time. Some of the benefits of trading stocks are as follows:
1. Stock trading is smooth and continuous and at the same time it will give you a fraction of ownership of a company
2. Stock market provides for diversification as the stock values change independently and does not depend on the value of shares or bonds
3. Stock trading or investing offers the benefits of dividends, which is offered by the company
4. Investing is considered to be profitable in long run than trading
5. Stocks are one of the assets with high liquidity factor, which is the ability of an asset to be converted into cash
6. Unlike other assets, you don't need to hold stocks for a long time, but they offer higher returns over a short period of time
7. SEBI regulates stock trading and investment
8. The most important benefit of stocks is that you can start investing a low amount initially
