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How To Invest In Cash Trading

A stock market or a share market is the place where trading of share (equities) is taking place between two parties, one is the buyer & one is the seller, both gets the revenue and losses in this process, This is a risk-taking process of earning money. Here trading is not only to share but also in financial instruments like commodities, precious metals, agriculture products and foreign currencies. It provides cash and future trading on the basis of delivery and provides profits if market prices are high and loss vice versa.
In cash trading, buying and selling of financial instruments are done for an immediate delivery, also called as Spot market. It trades in two options, one is in equity shares and another one is debt-bonds (Government and Mortgage bonds). Here deal is done in 2 to 3 business days. It may be Exchanged or an OTC � over The Counter. In Exchange peoples mutually buy and sell their securities and other financial instruments, on the platform of BSE-Bombay Stock Exchange and NSE- National Stock Exchange. Both have a similar trading mechanism, hours and operating principle. All major business in the country is listed on both of these exchanges.
In future trading, you can buy shares or any financial instruments at present, but its payment and delivery occur at a future specified date. Both types of trading have risk at their own levels like Cash is risky at an Intraday trading because your cash payment is done and there no way to return back if your loss, and in future is less risky in Intraday trading tips , just the opposite happens in future trading, but we can only buy in cash trading in futures not to sell.
Cash trading is done when a trader has money in hands which are different from trade on the margin where trader took credit from his broker for trading in the market. In cash, a trading trader can hold his share/financial instrument as long as he wants and face profit/loss according to market changes. Here, a possibility of earning a profit is much higher than any other method of investing. It is unfeasible in nature. But on the other hand, it has a high brokerage charge and taxes for delivery trading. It has 10 times more brokerage than marginal trading, but we can decrease this amount by opting for the online share trading portal, here we give less amount in brokerage but still more than marginal trading brokerage.
For both types of trading, investors require a Demat account as financial instruments are held in a dematerialized account instead of the investor taking physical possession of the certificate.

Trading in stock cash market

1)Technical Analysis
2)Fundamental Analysis
3)Trading Based on News
4)Index Method based Trading
5)Stock Cash Tips based Trading
Technical analysis: In technical analysis the technical or the price movements of the commodities or the stock is analyzed. The previous or past price movements are taken as a basis for anticipation of future price movements. In technical analysis various index or indicators like weighted average and moving averages are calculated and plotted. For example one can plot 7 days moving averages and 14 days moving averages. When these graphs cross each other it gives a buy or a sell signals. Technical analysis is a whole in depth branch and to be experts in this field require a lot of effort and time.
Fundamental Analysis: In fundamental analysis the financial fundamentals of the studied to determine the suitability of the company for the investment. The profits incurred and the financial data shared by the company forms a basis of the investment.
Trading Based on News: The national and international news have a very strong impact on the price movements or the price fluctuations. Thus the latest news can be made as a basis for trading profitably and effectively.
Index Method based Trading: The index based method is related to the diversification of the portfolio of trader. The trader can invest in different sectors so that there is a mix of movement in case of downfall of a particular sector. This method has been found effective in making moderate profits.
Stock Cash Tips Based Trading: In all the method listed above, there should be a detailed knowledge of the tactics involved and knowledge should be of expert level to trade effectively and profitably. For a newbie who is new to the stock market or commodity market and don’t have much experience, they can rely on the advice of the stock market advisory firms which give advice based on the analysis by the above listed methods. These advisory firms have expert technical analysts and fundamental analysts who do in-depth analysis and give accurate stock market tips. We offer stock cash tips that are over 90% exact and will be in favour for benefits of our customers. Stock Cash Tips a system through which the intraday traders can earn. We give the calls with well tested SMS system which delivers the calls to you instantly so that you get enough time to enter the trade and achieve all the targets given in the call.
Thus above are the methods or strategies to trade effectively in the stock or the commodity markets.

A Free Style Of Trading

You buy the right to honors the contract for a price called premium. Options have a power of versatility and enable you to adapt/adjust your positioning according to market situations.
Stock Options are not suitable for everyone they are risky; this can be speculative in nature and carry a substantial risk of loss. Future requires high margin payment than option and also future were preferred by speculators and arbitrageurs and get unlimited profit with loss potentials, But option was preferred by only with hedger and earn an unlimited profit with unlimited loss potential.
Terms in option contract are-
Premium- also called Token, the payment given by the buyer to the seller to enjoy the privileges of an option.
Strike price/Exercise Price- A price is fixed between seller and buyer of the asset which can be bought or sold in future.
Strike Price Internal- these are different strike prices on which option contract is traded. Generally, these are 11 types, 5 are above the strike price and 5 are below the strike price.
Lots sizes- This is fixed size of a commodity on which they are traded.
Ex. Reliance industries have a lot size of 250 shares per contract.
Options are of two types through which we can buy or sell share/index in derivative markets are- call options and the put options.
CALL OPTION- It provides the right to buy a certain amount of share/index from the derivative market, strike/exercise price on or before a specific data in the future expiry data. For this option, you have to pay an option premium to the seller/writer of the option. This is because the writer of the call option assumes the risk of loss due to rise in market price of that share/index beyond its strike price on or before the expiry date. Here, the seller is obligated to sell share/index at the strike price even through it means making a loss. Below some key feature are discussed call option-
�Specifics-you will have to specify how much you are ready to pay for the call option for this you have to place a buy order with your broker specifying the strike price and the expiry date.
�Fixed price-also known as exercise price, this is fixed amount of buying the underlying assets in the future.
�Option premium- this is first paid to the exchange, which then passes it on to the option seller and when you buy the call option, you must pay the option writer a premium.
�Margins- when you sell a call option by paying an initial margin not the entire sum, once you pay the margin you have to maintain a minimum amount in your trading account or with your broker.

Let’s understand call option with this example- A land developer may want the right to purchase a vacant lot in the future, but will only want to exercise that right if certain zoning laws are put into place. The developer can buy a call option from the landowner to buy the lot at say Rs 2, 50,000 at any point in the next 3 years. Here, the land owner will not grant for free option, the land developer need to contribute a premium/down payment to lock its right. Here the premium might be Rs 6000 that the developer pays the landowner. When 2 years passed the zoning had been approved they exercised and developed his option and they bought the land for $250,000 and it has doubled the market value of plot. In alternative case the zoning approval doesn’t came, and the one year passed the option has expired. The developer will pay the market price in the cash form and the landowner will kept the $6,000.
Put Option- Market is full of buyer and seller; there can’t be a buyer without there being a seller. In the same way, option market without having put option you cannot have call option. Put are the option which provide the right to sell of underlying stock or index at a pre determined price before or on a specified date in the future. Here, the strike price and expiry date is pre-defined by the stock exchange. Call and Put options share the similar traits but in opposite nature. The following are key features of put options.
�Specifics-you will have to specify how much you are ready to pay for the call option for this you have to place a buy order with your broker specifying the strike price and the expiry date.
�Fixed / Exercise price- It is a strike price which is fixed for buy the underlying assets in the future. It is fixed by mutual consent of both the parties.

Can A Beginner Start Trading

Following are the guidelines to begin with trading in commodity market:

1)Select a right broker- As we are aware of the fact that trading can not be done over the exchange directly, a trading platform is required to do so.There are various stock brokers who offers these brokerage services and charge commission for it.To trade in commodities traders have to select brokers who are having membership with mcx .

2)Minimum investment amount required-There is no fix amount which is required to begin with commodity trading as it varies from different commodities.Starting trading with initially Rs.10,000 is believed to be ideal.

3)Basic trading needs- A good Internet connection and trading application must be installed.Broker whose services you are using will install application on your system and will guide you how to use it.Along with it you can use financial advisory services like mcx market tips as well for getting more positive results.

4)Trading time- Every market has its own timings within which you can trade in them. MCX opens at 10a.m and closes at 11:30p.m .

Few tips to improve performance in commodity market are discussed below:

1)Learn market theory-There are some concepts like convergence, contango, spread and more related to commodity trading and are its basic building blocks.Before beginning to trade traders should learn about these concepts.

2)Technical and fundamental analysis- Alone technical analysis is not sufficient here, fundamental analysis is equally important.Charts, price data, market trends are analyzed in technical analysis and historic data, market updates are analyzed in fundamental analysis.

3)Stay updated with market performance- Commodity traders needs to pay extra attention to all market updates and news as skipping one important update may bring big loss.

4)Interaction-Try to involve in trading environment which have other traders as well.This will not only help in learning from each other but also helps in understanding how others interpret those news and updates.

Having commodities as a part of portfolio along with stocks helps to maintain a well diversified portfolio.Trading in commodities has several benefits.Along with traders , speculators also exists in the market.Trading decisions should be on the basis of facts always.Financial analysts gives suggestions on currency tips and other related trading tips which can be considered while trading for managing risk and returns in a better way.No trader has become successful overnight, never follow wrong trading practices in lust of earning quick returns.A well organized and disciplined trading practice helps to sustain in market on long term basis and by earning good returns.

Choosing The Right Investment Company

What is a Traditional Brokerage?

You have surely seen brokerage firms advertising on television, billboards and the radio. They are the very large and well-known firms. You might find narrow niche markets within this kind of firm, such as focusing on socially responsible investing. They generally have 24/7 access for clients and are relatively inexpensive. However, you might find yourself paying more if you want additional advice, so this can be an issue for those who are investing on a tight budget and need additional information to make the right investments.

Investing with Your Insurance Company

Compared to a traditional SRI investment company, this is a much more limited option, but there are opportunities. For example, you can look into something like an annuity. The biggest issue with this option is that your long-term return can be very limited due to high costs. The personal attention is beneficial, as is the overall simplicity of working with this option. However, if you want to get the most return for your money, this may not be a solid option.

Credit Unions and Banks

While not used for investing in things like companies and stocks, you might consider this option for investing in things like an IRA. Credit unions and banks might also be able to give you some advice for things like insurance and building your investment portfolio. The limited scope of products is the biggest issue with this option. You get a lot of personal attention, especially if you have a pre-existing relationship with them, but if you want a very diverse portfolio, this might not be ideal.

Online Investment Companies

With a busy life, investing online gives you a chance to do it on your own time. The information and assistance is generally inexpensive too. You have a number of options and there are multiple reputable websites to choose from. However, since this is all done solely online, you are not getting the attention you get from other options. If you are new to investing, this might not be ideal because you are on your own and do not get a lot of time to learn from an experienced investor as you make investments.

Independent Investment Advisors

This is an option if you want tailored advice and a wealth of investment options. This type of service usually offers both investment monitoring options and direct financial advice. However, over time, your returns can be limited due to advisor fees. Make sure to compare the fees to your potential returns to ensure that it is a sound option.

Become A Successful Forex Trader

Following are few guidelines to become a successful forex trader

1)Set realistic goals- Before starting with forex trading it is required to decide what goals you want to accomplish. Having clear set of goals in your mind will help you to decide a better trading strategy which can help in fulfilling those goals.

2)Choose right pairs to trade- Though forex market is open 24 hours a day , 5 days a week there is some peak volumes hours which guarantees liquidity.Your success here depends on the pairs which you choose to trade with.Small traders with mini account are advised to trade in US currency against some other foreign currencies.

3)Never Procrastinate � Successful people never leave things on tomorrow which they can do today.The same path traders have to follow to succeed in forex.Try to seize every opportunity which will help in achieving your gaols.

4)Learn and practice- Understanding forex market is difficult.Having a vague knowledge about it is not sufficient.Before beginning to trade here learn about market and its related terminologies form authentic sources and practice trading using your demo account.

5)Be careful while selecting your entry and exit time frame-Traders often get confused by looking at charts of different time frames.Sometimes a weekly chart indicates a buying opportunity and at the same time intraday chart give sell signal.Synchronize your charts properly and when weekly charts gives a sell signal wait for daily chart to give the same signal.

6)Plan a wise trading strategy- Currency traders must have a clear vision.Different trading strategies like scalping, positional trade, swing can be used here.Traders should go for strategy which they are comfortable to use and also have a complete understanding of that strategy.Use your demo account to test different strategies without risking your money in the market.

7)Learn to accept small losses- Trading in forex indicates that your money is in risk. Make sure you only use that much capital which you can afford to loose and do not go beyond that limit.Keep a positive attitude and learn to accept small losses.This will help you manage risk in a better way and improve your returns.

Becoming a successful forex trader is more dependent on the mindset with which trader is trading.No trading strategy is going to give positive results until you a have proper mindset.Other market which is also preferred by large number of traders is commodity market.Gold is believed to be most liquid commodity and on large scale it is traded on mcx.Traders can seek help from financial advisors in the form of mcx tips, forex trading tips and more to earn good returns while trading in different markets.Becoming a successful trader in any market requires good patience and knowledge about market