Stock market trading is the process of buying or selling of stocks and shares in a stock exchange. Stock market is a market where companies stocks are traded by brokers from around the world on the behalf of the investors. Now a day’s people have become so much addicted to stock trading that they have started making stock trading as their fulltime profession, there are people who were quitting their jobs to make stock business as their profession. Stock business can be done from anywhere, there is no particular place assigned for it. The main reason why people do trading is to make money, and they do so by buying stocks at a low price and then selling them at a higher price.
In stock trading a lot have been changed over the years, Earlier there was a time when the trader himself have to be physically present for doing stock marketing, but now with the coming up of internet age anyone can do stock marketing by sitting at their own places. The basic rule for stock trading is to buy the stock when it is at low price and sell the stock when it is a t higher price. Now a day’s stock trading is being done mostly from the margin money- the trader doesn’t required to put all his money into trading, the brokers gives certain percentage of margins to each of their clients for doing intraday trading. This margin may vary from client to client.
Stock brokers are professionals who are responsible for gathering information regarding stocks, bonds, mutual funds and other financial instruments and providing this information to the clients. Stock brokers also executes buy or sell orders for their clients. One needs to have an account with the broker before doing stock business, it’s the broker who acts as a mediator between buyer and seller of the stocks, it’s the duty of the broker to maintain the accounts of clients and provide them with margin money for doing intraday trading. And for providing these services broker charges certain commission. This commission may vary from client to client. It’s the responsibility of the broker to make different plans for different clients as per the requirement.
Stock trading can be riskier at times, so it;s very essential for the trader to invest in right security. Trader can select between right and wrong on the basis of the knowledge and awareness which he had about stock market. Stock market can result in huge losses if the trader invests without knowing the market trends and without having the up to date knowledge about stock markets. Today there are companies which provide stock business tips to its clients and for this they charge certain fees. There is a difference between stock marketing and investing – investing means buying of stocks or shares for a longer period of time for growth purpose where as trading means buying and selling of stocks on a regular basis for making instant money.