“The stock market is a device for transferring money from impatient to patient”
- Warren Buffet
What is stock market ?
Stock market is just like a game where you buy and sell stocks of a particular company how it works is that a company holds 51% of their share and 49% is open to the people willing to buy the particular company's share later which the company releases it's IPO (initial public offering), but it's not a simple game to invest in the stock market a person has to research a lot about what company does and what are their future planning, Whether or not they are going to collaborate with any other company. Diversification is the key it reduces the risk of losing money among the investor as if there is loss in one company other company will be there to cover the loss and also gain profit on the investment. For some people stock market is their main source of earning money. Before investing in any stock person must keep in mind that stock market is subject to market risks and there are equal chances of loss as well. Market is of 3 behaviour which is bearish, bullish and neutral. Bearish is when market is down the stock price of a company is decreasing. Bullish is when the stock price of company is increasing. Like you have bank accounts to transfer money, similarly you have to get a demat account to buy/sell stocks, People go to brokers to open demat account but now a person can open it for free on upstox.
Indian stock market
You can buy/sell stocks of the company listed in Stock exchange, 2 stocks exchange widely use in India are BSE (Bombay stock exchange) and NSE ( National Stock exchange). Sensex is the index of top 30 companies listed in BSE and Nifty is index of top 50 companies listed in NSE, It is important to know that when sensex goes up it majorly means that stock prices of the company is going up and if the sensex goes down it indicates that stock price of the companies are going down again it does not necessarily means that all companies are doing bad, Similarly it works with nifty.
What is Intraday ?
The term Intraday means buying and selling of the stock on same day, For example Mr X bought 100 share of the a company and sold it when price increased before the market close this is called intraday. What happens when market is bearish ? Will there be no intraday ? That's where the concept of short selling comes, Intraday short-selling means selling the stock first then buying it. To make it simpler for example there is a bearish trend going on in a certain company. You know that the price of the stock is going to reduce by the end of the market timing, so you sell the stock first when price is high then you sell it later when the price goes down you buy it, which books your profit.
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