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Buying and selling of the shares is what the share market is all about. The core motive is profit. There are many elements at play here but the fundamentals remain the same i.e. how to extract gain from the bargain? To buy or sell a share, an order is given to do that action.

Following are the orders for buying or selling stocks:

Methods of Buying and Selling Shares Market Order: when the buy or sell order is placed in accordance to the market rate i.e. the execution of the order is at the present market price, the order is said to be market order. In this, mentioning the price is not necessary; the share will get executed at current price. This is used more for immediate transaction. This is used when fast execution of the order at an available price is needed. In this the shares will get executed at the best current available price.

Limit Order: the price to buy or sell has to be mentioned when the share price reaches that price the order will then be executed. But it is uncertain that the price will come to the limit order. This is frisky because after the share-market close at 3:30 the order remains open if the price doesn’t reach the limit price. If this happens, the trader has to pay heavy penalties. It is similar to stop loss trigger.

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You can use a pivot calculator for simple stop loss calculation for delivery based trading and intraday stop loss depends on how much you are ready to lose – the maximum amount you are ready to lose- it also depends on the price movements of the scrip for that particular day.

Offline share trading: the share trading over a telephone via a broker is called offline share trading.

Different types of share trading:

· Day trading: buying and selling of the shares on a daily basis is called day trading.

· Delivery trading: In this a trader should have the delivery of the shares only then he could start selling them.

Basically the trading decisions are taken by the following tools:

Fundamental analysis: (used for long term investment)

• EPS (earning per share) ratio
• Book value
• Working capital ratio
• Return on equity ratio
• Debt equity ratio

Technical analysis: (short term investments)

· Open price of the share

· High price of the share

· Low price of the share

· Closing price of the share

These factors drive buying and selling of shares. If you want to be successful you have to know the underlying basics.

Get Accurate Share Market Tips on Your Mobile Now for Amazing Profits - Call now at 09829714440