Do you like to take the risk and aspire to be rich within a short period? Then Stocks trading in the stock market is the best option for you. You can go for stock trading with proper technical and fundamental analysis of stocks. Stock market is the place where stocks are being purchased and sold by the brokers on the behalf of investors.
Birth of stock trading:
In Netherland, Amsterdam the Dutch East Company started the first stock trading in 1602. In 1607 first time derivatives were traded with the dividend.
The approaches to stock market investing:
There are numerous ways analysts, investors adopt to pick up the stocks .But the basic strategy of buying stock are growth investors and value investors. Growth investors search for the companies who have exceptionally high growth rates. They are not interested in receiving dividends rather they mainly focus on the companies which are declining towards risk. Value investors like to invest in those companies which give the regular dividend. They prefer to avoid risk and like to invest in companies which are well established for a long period.
How bid-ask affects the price of stock:
Bid price: the maximum price the buyer is ready to pay for the buying stock.
Ask price: The minimum price that seller is ready to take for selling the stock.
The difference between bid-ask price is called bid-ask spread. The market maker benefited from the spread. It is like a hidden cost. The supply and demand in the market determines the spread and the price of the stock. The more investors want to buy, the more bids there will be and as a result more sellers ask more.
The participants of the stock market:
Regulators, brokers, stock exchange markets, and investors play an important role in stock market trading.
Stock exchange is the organised market place which eases the activity of buying and selling stocks. It brings the buyers and sellers to the same place.
SEBI gives the license to the brokers. They act as a mediator between the purchasers and sellers.
Investors mainly buy the stocks of a company and they become shareholders of that company. They get the right to vote, right to receive dividends etc.
A regulatory authority approves various laws and implements those laws so that no broker or company is involved in unscrupulous activity.SEBI is the regulating authority in India.
Is stock trading good or bad:
Investment in the stock market bears the risk which means one can lose everything. If someone wants to take risk then he should invest only in a surplus fund to bear the pain of loss.
The quality needs to be good stock trader:
A good trader is never affected by others judgement regarding the market. He is aware about rules regarding trading and searches for the market. They believed their own instinct. Before investing, you can check more information at https://www.webull.com/quote/rankgainer.