As a beginner in trading, most of the information you are provided through various internet sources can seem extremely confusing.
Stock market has gained quick popularity over the past few years and this is mostly due to the advance in technology which has made stock market trading open to a larger crowd.
As a beginner, you must acquaint yourself with all the terminologies associated with stock market trading.
These terms are going to pop up in any given aspect of stock market trading and would also eventually help you choose the appropriate approach for trading.
To begin with, the Indian stock market is a clouded idea for those who are new to this.
So as a beginner or as a seasoned trader who has doubts about going forward, it is always advisable to start at the bottom.
To understand the technicalities associated with the Indian Stock Market, read more at : http://stockmarketsignals.com/complete-overview-indian-stock-market/
When you decide to begin your journey as an investor or a trader in the stock market, no one answers the most vital question of all – “what are stocks?”, “how do you understand its functionality?”
What is a ‘Stock’?
A stock can be defined as a share which places you in the ownership of a company.
The stocks represent one’s claims on the company’s wealth and capital.
The more stocks of a company you buy, the greater your ownership stake.
Equity and shares are mostly the same – gaining of both provide your with immense ownership stakes.
Stocks usually trade based on exchanges.
One must always remember that there are two types of stocks available in the market- Common Stock and Preferred Stock.
While common stock, as the name suggests, is the one that most people prefer to trade with, preferred stocks are fixed dividends in a company held by certain members or preferred shareholders of the organisation.
Common Stocks are the major type of stocks issues in the market.
They yield higher margins of profit over a period of time and most people prefer to invest in them.
Analyzing how these stocks function within the stock market is a very crucial task.
It is very important for us to find and evaluate which stocks would fare well in the market and which ones won’t.
How do we do that?
We have to first understand the different kind of stock lists and then evaluate which stocks are best suited for your trading plan.
It’s important to remember that not every stock available in the market is for every trader.
So, SMS helps you by listing out stocks which might potentially suit your trading plan.
The page is preceded by two other pages on How to Time the Market and more importantly our report on 7 Step Investment Strategy which has been sought for by innumerable traders all over the world!
If read together, these reports can help you understand the Indian Stock Market with reference to the ways of the global market far more deeply.
So read the entire series of free reports on http://stockmarketsignals.com/how-to-invest/