What is stock trading and what is your role as a speculator?
In stock trading companies sell their securities which are listed in stock exchange. Only when the stock exchange authorities approve after being satisfied with the financial and other aspects of the company is the company’s name included in the listed securities.
You can buy and sell these securities with the help of a broker in stock trading where you benefit when the value of the securities rises. Thus stock trading is a risk based or risk oriented trade. However by using the right strategies you can control the risk to gain high profits. You can buy and sell stocks only through SEBI registered brokers who are indeed the members of stock exchange. Most of the stock exchange platforms are the brokers today that help you trade stocks. Brokers could be anyone including corporate bodies, individual, partnership firms, etc.
The process of stock trading
The first step of stock trading is selecting a broker based on your style of trading like day trading, short term trading, etc and lifestyle. Panning on the money you are willing to spend is also important where it is very necessary to invest money which you are risking to lose. The broker is responsible for carrying your transactions like buying and selling the stocks on your behalf. Get stock alerts here.
Online stock trading platforms or brokers allow you to buy and trade stocks online where you can decide n the right time to buy and sell them to earn money. Thus stock trading in brief involves the following stages. Finding stocks that you want to trade; choosing one which you are interested to buy from the lot you have researched about; buying that stock; selling it as you have planned; after you have acted open whether you sod it or retained it you have to follow up and record the undertaking for analyzing where you went right or wrong.