Share Trading Learning Tutorial For Stock Investment

Share Trading Learning Tutorial, How to Learn, Share Trading
Share Trading Learning Tutorial, How to Learn, Share Trading

Share Trading Learning Tutorial, How to Learn, Share Trading?

You can learn the trading through the following ways and Share Trading Learning Tutorial:

  • Share Market Trading Broker
  • Online Trading Websites
Share Trading Learning Tutorial, How to Learn, Share Trading
Share Trading Learning Tutorial, How to Learn, Share Trading

A lot of stock market trading brokers are available in the India like Share khan, ICICI Direct, Motilal Oswal etc. They are the main leading brokerage houses in the India and they can lead you to learn the stock market trading. They also suggest online stock trading Option Tips if you open your stock trading account with them. Once you are open the online stock market trading account, a demo video will be accessible that will assist you to study share market trading. These companies also provide Stock Tips and Nifty Tips that would be helpful to purchase potential stocks. Some of the stocks like, Essar Oil Limited, Reliance Natural Resources Limited, Neyveli Lignite Corporation are then used for Intraday stock trading.

The Indian share market has good potential in the future, as it is one of the up-and-coming economies in the world. There are elegant ways to earn in a possible market like India.

What is the next Step?

You have to acquire research assistance from the websites which gives smart Stock Trading Tips to earn much more money.

By continuing reading Share Trading Learning Tutorial, if you open your stock trading account with them. Once you are open the online stock market trading account, a demo video will be accessible that will assist you to study share market trading. These companies also provide Stock Tips and Nifty Tips that would be helpful to purchase potential stocks. Some of the stocks like, Essar Oil Limited, Reliance Natural Resources Limited, Neyveli Lignite Corporation are then used for Intraday stock trading.

The Indian share market has good potential in the future, as it is one of the up-and-coming economies in the world. There are elegant ways to earn in a possible market like India.

What is the next Step in Share Trading Learning Tutorial?

You have to acquire research assistance from the websites which gives smart Stock Trading Tips to earn much more money.

Understanding support and resistance for successful stock trading

A stock trader guided by an in-depth understanding of how stocks trend is more likely to be successful at stock trading than someone who trades based on half-baked information or according to their whims.

There are two ways of analysis that trading decisions are usually preempted by; fundamental analysis and technical analysis.

Fundamental analysis involves assessing the assets, liabilities, outstanding shares and predicted future growth of a company whereas technical analysis is restricted to analyzing the movement of stock prices over a period of time in the stock market.

According to the proponents of technical analysis of stock trends, a stock’s price imparts all necessary information about the stock and the company.

Before one starts technically analyzing stock trends with the help of candlestick charts and other tools, it can serve them well to understand the concepts of support and resistance.

What are support and resistance?

According to the theory of the technical analysis of stock trends, the movement of stock prices tends to stop and reverse at certain levels known as support and resistance.

Usually, a stock’s price is prevented from going below a certain price, known as the ‘support’ line and does not rise above a particular price, known as the ‘resistance’ line.

It tends to trade between these two levels, reversing its course whenever it hits these lines.

Let us try to understand what support and resistance refer to.

Support

When the demand of a stock continues to increase till the demand reaches a high point where buyers are willing to pay the current market price, the price does not dip beyond that level. This price level is the support of the stock.

Thus support is, essentially, a price level where demand overshoots supply and prevents prices from falling further.

Resistance

As the demand of a stock decreases till it reaches a low point where the buyers are unwilling to pay more than the current market price, the price does not rise any further. This price level is the resistance of the stock.

Thus resistance is, essentially, a price level where supply overshoots demand and prevents prices from rising further.

The theory of technical analysis of stock trends goes on to further state that:

The more time the stock price bounces off support and falls back from resistance, the stronger these lines become.

In other words, the probability of these trendlines being maintained increases with each recurrence that conforms to their structure.

A universal type of support and resistance numbers that is observed across stock trends is ’round numbers’. Numbers such as 10, 20, 35, 50, 100 and 1,000 tend to be common digits where support and resistance levels are formed.
When there is a significant movement of price downwards of support or upwards of resistance, support and resistance levels can switch roles.
Prices moving downwards of support can convert it into resistance and prices moving upwards of resistance can convert it into support.

Trading strategies based on support and resistance levels

Traders are usually said to be in a short position or long position depending on their varied expectations from stock trading.

Short position refers to borrowing and selling stocks when they are considered to be overvalued, in order to make profit off of them.

Long position refers to the buying of stocks based on the expectation that the stock prices will appreciate.

These different kinds of traders can review the support and resistance lines of a stock trend and make decisions based on the same.

Short position traders can choose to sell off stocks when the stock price reaches near the resistance level, knowing through past data that the chances of the stock prices rising upwards of the resistance level are negligible and waiting for them to rise to make greater profit would be futile.

Long position traders can settle in on a buying position near the support level price, knowing that past data affirms to the tendency of the stock to trend upwards of this price.
Arranging exits (stop-loss orders) a little upwards of the resistance level and lower of the support level can help secure profits and prevent losses.

The technical analysis of stock trends is ruled by several calculations and permutations. The basics of understanding any of these involve the grasp of the concepts of support and resistance and how they should influence your trading decisions. Hope you liked Share Trading Learning Tutorial Article.

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