Easy tips to make profit in Share market / Trading.

Learn share market and make profits easily

Before investing in share market it is important that you understand the very basics before doing any transcation such as buying and selling of shares.

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Here lests discuss basic important points which are important for trading. (In depth details will be discussed later on in detail).

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1. TRADING ACCOUNT:

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At first for buying or selling a share(ie trading) you need to open a trading account. Several banks such as axis, ICICI, HDFC banks provide trading service which is often called as trading broker or agent. Where when ever you make trading, bank(trading broker/agent) will charge you with brokerage charges, service tax, stamp tax, etc... Dont worry when you make profit in trading these charges will be deducted from profit it self. So you need not put any amount for this from hand.

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2.Intraday Trading Tips:  Since you are a beginner it is good to start with Intra-day trading. So what is it? Lets see here.

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Intraday refers to trade who opens and closes in same trading day. That is you buy or sell share on same day itself. You cannot buy a share today and sell it on future. It will be completed in same trading day and you will make profit or loss in same day.

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3. Doing Trading: Now you have trading account and got basic details about intraday. Lets move further with trading.
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Price of a share goes up or down depending upon various factors. Below are important ones.


a)  Quantity vs demand. Buyers vs Sellers.
b) Performance of its company. Annual results, recent deals or any breaking deal announcements released in media.
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Based on above two points you can come to a conclusing whether you need to buy a share or you should go with sell option.
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a)  Quantity vs demand. Buyers vs Sellers. For example:

When there is more quantity of Buyers and very less sellers. Then the price is controlled by Sellers. Since sellers are very less. Sellers will always want to sell share at high price. So the price of share will follow increasing trend.Since there are huge buyers many will come forward to buy share in high price. In this scenario it is safe to go with intraday buy option. eg: ie you make intraday - Buy transaction at rate 180 and square off at rate 185 or above making profit on same day.
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When there is more quantity of Sellers and very less buyers. Then the price is controlled by buyers.
Since buyers are very less. Buyers will always want to buy a share with reduced price. Hence the share price will eventually follow decreasing trend. Since there are huge sellers of which many will come forward to sell share in low price. In this scenario it is safe to go with intraday sell option.eg: ie you make intraday sell transaction at rate 190 and square off  at 180 or below making profic on same day.
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b) Performance of its company. Annual results, recent deals or any breaking deal announcements released in media.
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Based upon the media accouncements the price of the share will also vary. If the announcement is positive, mostly the price of share will go up. If the media announcement is negative, then mostly the price of share will go down.
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Hope these 3 steps will give some idea to make positive progress in trading.....
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