What is stock market?

India
July 27, 2008 7:19am CST
Hi i am novice to investments and stock trading. Can anyone help me with a brief introduction on this? What should i start with ? What is Demat account ? How do i know what share to buy? how can i understand the keywords used in stock market?
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4 responses
@sdas86 (6076)
• Malaysia
27 Jul 08
Hi, Stock market is one type of investments. Investment in stock market is divided into to types of people, trader and investor. Type of techniques are fundamental and technical analysis. Fundamental analysis: Analyzing ROE, EPS, P/E, NTA per share, dividends, and so on. Technical analysis: Analyzing graph, MACD, RSI, Bollinger Band, volume and so on. It depends on what type of investor you are. So, try to learn both analysis and get some idea which type suit you. Then, invest your money in stock market to make money.
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• India
27 Jul 08
Thanks for your response. Would i need to study more on this subject?
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@sdas86 (6076)
• Malaysia
27 Jul 08
Hi, I think everyone need to have knowledge in a subject before we can be successful in it. A story I learn from Rich Dad Guide to Investing: When we start to ride bicycle, we keep on falling and can balance ourselves. Our parents can only guide us at the side but cannot help us to success. We will keep falling until we success to balance ourselves and then ride fast. It is true for stock market investment. We need knowledge in it and trial and errors to become successful. Of course, we don't want to fail a lot of time in stock market, so knowledge is very important. Knowledge and experience is the key to successful stock investment. Once you can balance yourself in stock investment, the you can ride extremely fast.
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@steady (936)
• Philippines
27 Jul 08
check out my WHERE TO INVEST blog in my profile, i'm sure you'll learn a lot from it. good luck!
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@pratheep87 (1228)
• India
27 Jul 08
Demat account is used to hold your stocks online.will demat account and trading account you can buy and sell stock. contact any brokerage firm
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25 Aug 08
Investing is such a big word. It includes an in-depth study of money and investments. If you want to invest in stocks you have to be very knowledgable about it. Study the terms and literally be well versed on it. Take time to visit all the sites regarding investment on the internet. Its all there. So, investing stocks is relatively a high risk endevor. Yes, the risks are high but along comes high returns. It entails a big amount of money to invest though. You have to set aside time to monitor the market for its performance even if you have a broker hired. Next is the broker's fee you have to shell out. It varies but it is usually 1.5% to 3%. If you invest in bonds (government or company), your money is tied up for some years to be able to encash your savings. It is usually very safe but the return is also meager. Furthermore, if you have an emergency need for money, you cannot encash your bonds immediately.