Basics of Stock Market

 

Introduction: - stock market is huge subject to learn the all-time best investor warren buffet said that “Price is what you pay, value is what you get.” The basic rule of stock market is how much you trust in your study that much you gain in future; Value is derived from the particular asset or company that value refers as name of stock/share. To learn the basics of stock market you must need to understand the rule of basics economy, that demand and supply game, understanding of technical analysis, fundamental analysis, market reactions etc.

1. Demand and Supply game: - 

In stock market the value of stock is same but there are two persons who known as buyer and seller. Let us take an example of Starcapital ltd. Company share value is 100rs and Mr. Satish want to buy 30 share and Miss. Priya wants to sell 35 shares at 110 Rs. So, the supply was given by Miss Priya and Demand was created by Mr. Satish so that we learn if you want to buy or sell something in Real life or in stock market the supply and demand was so important.

2. Buyer and Seller: -

There are two dominant persons who runs the whole stock market and they create the demand and supply in stock market, Buyer, and seller that we learn buyer was creating demand and seller was creating supply. If you are bullish on market and you want to buy a stock so the seller was be there to sell the stock then the processes of buying is complete and same think works in if you are bearish on market.

3. Understanding of Technical analysis: -

Technical analysis is important for analysing the accurate data and analysis the trend of market. There are many technical analyses used by traders like line graph, line bar and candlestick patterns. The best and 100% working is candlestick patterns, candlestick patterns are decoupled by japes people for easy and smooth understanding of stock movements and trends of market some of know as Morning star, Evening star, Hammer, Doji etc.

4. Fundamental analysis: -

Fundamental analysis works as mane Characteristic of stock market fundamental study gives you write information about stock or company and gives detail information about the company like what type of company, valuation of company, debate, cash reserves, PE ratio, ROI, ROIC, Sales, Margin, Profit etc.

5. Market reactions: -

Market reactions is basically understanding the overall behaviour of market and making decisions on market reactions. The market is not always moves one side, so critical to understand the trend of market that’s why you need to understand the basics of stock market