Stock Market seems lucrative to many traders. It is considered by many an avenue where lots of wealth can be made. The stock market is always accompanied by a lot of risks. There are always probabilities of loss while trading in the stock market. The risk factor can be minimized by using a strategy which has a high rate of success. It is an experience of all that it is difficult to predict the future price movements with 100 percent accuracy. There are always losses associated with the trading plan. However, a good strategy can land the stock trader in overall profits. A strategy which has about 60-65 percent of returns can be considered as a good strategy.
The stock market can turn beneficial and it also requires very little resources to start the stock trading. A computer with an online trading account is required at first. Also, a minimum amount of trade is required. The trader can start trade with an amount as low as 5000 Rs. The important exchanges on which the stock trading can be done in India are BSE and NSE. The BSE stands for Bombay Stock Exchange and NSE stands for National stock exchange. By buying the stocks one gets the ownership in the company whose stocks are purchased. The higher the number of stocks purchased the more is the ownership one gets.
The prices of the stocks in the stock exchange continuously change and fluctuate. The reason for the change in the prices of the stocks is mainly demand and supply. An increase in the demand of the stocks will lead to an increase in the price of the stocks. On the other hand, a decrease in the prices of the stocks will lead to decrease in the prices of the stocks. The events, as well as news, also have a major impact on the prices of the stocks. A positive event or positive news tends to increase in the value of the stock and will, therefore, lead to an increase in the price of the stock. This is due to the increase in the demand of the stock. Similarly, a negative event or news will tend to decrease in the value of the company and hence demand. This will lead to da increase in the price of the stocks.