INTRODUCTION TO THE INDIAN STOCK MARKET
THE INDIAN STOCK MARKET IS DYNAMICE ECOSYSTEM FOR BUYING AND SELLING SECURITIES .IT PLAYS A CRUCIAL ROLE IN THE NATION’S ECONOMIC DEVELOPMENT BY PROVIDING A PLATE FOR CAPITAL RAISING AND INVESTMENT
IT HAVE TWO EXCHANGEN
1)NSE(NATIONAL STOCK EXCHANGE ):-
2)BSE (BOMBAY STOCK EXCHANGE ):-
It is established in 1875 it is a Asia’s oldest stock exchange it has manly 2 index
1)Sensex
2) Bankex
It is established in1992 it has manly 3 index
1)Nifty50
2) Bank Nifty
3) Finnifty
SECURITY SYSTEM
SEBI ( SECURITIES AND EXCHANGE BOARD OF INDIA ):- It is a regulate body established by the government in 1992 to protect the investor interest and regulate the securities
RBI ( RESERVE BANK OF INDIA ):- Over seas the banking sectors ,promotes financial stability ,ensure the smooth function of the financial system
INVESTMENT STRATERGIES FOR COLLEGE STUDENT
As a college student you can start investing in the stock market by adopting along term perspective understanding your risk tolerance and diversifying your portfolio
1)Start Small :- Start with a small investment amount and gradually increase your investment as your gain experience
2)Research thoroughly :-learn about the companies you are investing in their financial and industrial trends
3) Invest regularly :- adopt a disciplined approach of investing small amount regularly throught SIPs (systematic investment plans )
4) Diversify your :- in a mixed different assets like stocks mutual funded and bonds to reduce risks
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INVESTMENT ARE 4 TYPES
1) ETF Investment (EXCHANGE TRADED FUNDES ) :- Funds that trade on exchange generally tracking a specific index
2) Mutual fund investment :- Mutual fund is a pool of money gathered from many investors all with a common goal
3) Index fund investing :- An index fund is a type of mutual fund that aims to replicate the performance of a specific stock market index ( such as Nifty or sensex)
4) Stock investment :- investing is stock also known as equities or shares is a way to gain partial ownership in a company
HOW TO TRADE STOCK FOR BEGINNERS
1) Open a brokerage account
2) Consider investing in funds
3) Set a stock trading budget
4) Learn to use market orders and limit order
5)Practice with a paper trading account
6) Measure your returns against a fitting benchmark
7) Lower risk by building position slowly
TRADING ARE 5 TYPES
1)Intraday trading :-the main goal of intraday trading is to profit from price fluctuations’ throughout the day
1) positional trading :- positional trading is a trading strategy in which traders hold their position
2) Swing trading :- swing trading is a speculative trading strategy in financial market that involve buying and selling assets to profit from short term price movement or swing
3) Scalping trading :- scaling is a trading strategy that involves buying and selling securities at a rapid pace to profit from small price changes