In the modern world, common man often faces certain financial losses directly, as a result of the problems facing the national economy. Before I go into other basics of stock market let me define two most frequently used stock market terms, brokers and jobbers which are crucial for understanding the stock market properly. The investor must, therefore, employ the services of a registered stock broker for buying or selling shares in a stock market. However, the brokers merely act as agents for their clients and deal with another class of stock exchange professionals known as jobbers. Too strict adherence to limits can result in an opportunity being missed, especially when the market is changing rapidly. If you stick to a selling limit and the market plunges, you may lose an opportunity to sell your scrip that day.
Going by the share market basics such scrip should prove a good buy, provided you are patient enough. Understanding the stock market fundamentals %link% is essential for a first timer when it comes to acquiring the crucial knowledge about - how to decide when to buy the shares.
Of course, going by the basics of share market there are a few ground rules in this regard. Once this phase has ended and the market has stabilized, start watching the movement of various equity indices from financial news papers. For this it requires understanding the stock market thoroughly with years of practical knowledge about share market investment. My other hub about how to make money in the stock market shows how ‘timing' of purchase and sale plays a crucial role in making quick money from stock investment. In a nutshell, investing in share market is not as complicated for the first timers as it sounds once they acquire the basic knowledge of how the stock market works.
Eventhough the book was written in the form of a novel, it was actually a disguised biography of Jesse Livermore who was the greatest stock trader of the 20th century. William 'Neil, a stockbroker and enterpreneur, created the CANSLIM investing system for trading which is being followed by many top traders today. Written by two former employees of 'Neil, Chris and Gil explained 'Neil's trading strategy from their point of view plus additional information on reading the charts. Readers might be able to learn some methods that suits their trading style by reading this book.
A really good book recommended for people who are new to trading and want to learn all the "secrets" of how to become a successful trader. There are many types of chart patterns but candle charts are very powerful in determining the buy and sell signals of a stock. It contains a series of interviews %link% with top traders who discussed the different systems each one of them used for successful trading. The art of trend following is learning how to react to market prices with positive outcomes. An interesting method to learn if you have total discipline on when to enter or exit the market.