In Sharemarket or stockmarket or sharebazar there are people
of two types of category.
- Investors
- Traders
“Who are investors”?
Investors are doing investment in the market, even most of
the people even know how they earn money!!
* Example, you buy one share of infosys in 1000 INR and when
it is nearly 1200 INR you'r going to sell, you made the profit of 200 INR
including brokerage and tax. Mostly people aware about investment fundamentals.
Now we are going on a topic of “who are traders then” but
before that I would like to tell you about supply, demand and market price.
Market price is belongs to supply and demand.
*Example, crude oil, now what is supply here? There is a two
types of crude oil in world.
- Brent crude oil
- WTI crude oil
Brent crude oil
is produced in US by petroleum industries while WTI crude oil is produced in Arab. So these are supply where other
countries like India, china, japan, etc., who are the buyers, mostly they deal
with Saudi because it is nearer to Asian countries which I mention. So WTI
crude oil is supply and from crude
oil we have most necessary things like petrol, diesel, etc,.
Suppose I take an example of 10 people and they use 30 litre
of petrol each in a single month so eventually they use 300 litre every month. Now
supply is only available of 200 litres then? Each person can only use 20 litre
each or it increases the demand for
200 litres and eventually crude oil’s market price is going up. Now in same
example if supply is nearly 400
litres available so now each person can use 40 litre each and it makes demand is decreased and so crude oil’s
market price.
The same way share price in share market is depending on
supply and demand. To earn in sharemarket you must have a knowledge because
this is not the magic, you are earning of your knowledge just like in job. You
are paid for your effort and work same way you are an investor and you are paid
for your analysis and risk.
Now we are coming on trader, Traders are buying quantities
in lot.
Example, monsoon is going on and you know that demand of
pharmacy companies are increased so you have two options either investment or
trading. In trading you can earn more money in a short span of time as compare
to investment because you buy things in a lot. I know in this month demand of
medicines are increased or so buy things in a lot and sell in same month or same
day. So how you can earn more money in short span of time but again it’s a
knowledge not magic so do only trading when you are more than 90% sure or you
have grip on Indian market because you can earn good money in short span of time
or you can lose money in same short span of time. Don’t start straight away with
trading, take one year to understand what is going in Indian market and the
reasons of Indian markets up and down.
There are three strategies of sharemarket.
- Intrday: buy today and sell today or sell today and buy today (Trading), validity 1 day
- Delivery: buy shares and sell when you want to sell (Investment), validity life time
- F&O: buy a lot and sell a lot or sell a lot and buy a lot (trading), validity 1-3 months
No comments:
Post a Comment