Trading and Stock Market Knowledge for Beginners
For a beginner who is new to the stock market or the entire trading business, there must be certain kinds of doubts in mind- what if there is a loss and no profit, what if all money is kept idle etc etc. To resolve all these beginners' queries, ICFM has started an array of short-term courses that will help you understand the market well. To have a Basic Knowledge of Trading, a beginner's course will be beneficial and for in-depth knowledge, you can go for pro trading courses. At the end of the certificate classes, you will be provided with a valid signed certificate that can be helpful in future endeavours. During the tenure of the program, you will be acquainted with the Basics of the Stock Market as well.
A Beginner's guide to the stock market
The first thing to know is what is the stock market. It is nothing but a platform that consists of individual traders, investors and institutions. The price of assets in the stock market is dynamic and keeps on fluctuating. A potential trader can buy or sell an asset depending on its price and market trends. Some of the commonly used terms with the stock market are as follows which are vital for understanding the Basics of the Stock Market:
* Stock market correction - when there is a decline of 10-20 per cent in the market index, it is called a stock market correction
* Bear market - With more than a drop of 20 per cent, the market is known as a bear market
* Bull market - With more than 20 per cent hike than the bear market, it is called a bull market
* Crash - It refers to major fluctuation in the market with a short duration
* Investing v/s trading - Holding the stocks for more than a year is known as investing while trading is holding the stocks or assets for a shorter period
In a stock market, there are various kinds of stocks available and a few of them are common stocks, large-cap stocks, mid-cap stocks, domestic stocks, international stocks, IPO stocks, safe stocks, dividend stocks, and penny stocks among others.
Basics of trading
Trading means exchanging two goods i.e., one with the other. To begin trading or to gain access to financial markets, you need to open a trading account or a demo account with assistance from a registered broker. Every new trader might think why get involved in such risky business? Yes, it does have risks but there are ample other reasons to be involved:
While trading is riskier for a beginner than an investment, day trading will be a good option for starters. In day trading the market closes at the end of the day which means you have to complete your trading within a day until the market closes. For trading, you need to go for any particular market- be it share market, stock market or financial market. The knowledge related to the specific market and the kind of assets or securities used is very important to ensure that you use the techniques in the right direction for profit
