Trading Strategy include various method to trade in stock market like Discretionary trading, automated trading. Similarly, investment strategy advice the investors, one of them investment strategy is buy and hold, it is a long term investment strategy.
Trade in the stock market is a method in which the transfer of stocks is made between buyer and seller. Stock market or Equity Market is the place where seller and buyers are coming together and can trade in shares/ stocks. Shares are categorized in various ways. One of the common ways is by the country, where the company has established oneself. A stock trader is a company or person include in trading in equity stake that put money to use the equity stake. Traders are engaged in selling and buying shares, shares and futures in hedge funds.
Trading Strategy:
It is a plan to achieve profits in return in both the market (long time investment, market or short time investment market). Trading strategy is based on two types of analysis that is fundamental analysis or technical analysis. Traders perform vast observation as well as research; this is done by the study of economic, micro economic and also by macroeconomic to know how financial market will perform.
This is also one advance way that traders can do technical analysis of specific industry to track their performance and assets. This financial analysis shows the comparison between current and future regulation.
Basically, there are two ways to implement trading strategy in both long duration and short duration market.
Discretionary Trading
Discretionary Trading needs skill and discipline which usually reduce its performance.
Automated Trading
In Automated Trading computer assisted trading is implemented in which computer program is used.
Investment Strategy & Tips:
It is a set of rules for investors advise them in investment index. Investors expect to have a high return with low risk so; they end up with buy-high strategy and sell low strategy. Buy and Hold is a longer investment strategy, it includes buying company shares and can hold them for a long period. This concept is based for profit in return. It is one of the best strategies so one can enter on low position in the market and sell on high positions in the market, which does not work for small investors, it is better for long time investors.
Investment can be done online which is known as online trading, where investors or traders can buy and sell stocks. For this investment advisory firm build which is also known as financial organization. These advisers provide the investment ideas and solutions to their clients after the analysis by experts.
Equity Market Investment Strategy by MarketMagnify
Equity Market is the market for trading in equity instrument where stocks are securities that are a claim on the earning and assets of a company. Equity instrument would be a common stock shares those trade in stock exchange.
How do Money Market and Capital Market differs?
The main factors that show the difference between money market and capital market is time period or term that is money market deals in short term funds and capital market deals in long term funds. Money Market regulates by RBI where capital market regulates by SEBI. Money Market Instrument is bills of exchange, certificate of deposits, treasury bills, commercial paper, etc. where Capital Market Instrument is shares, debentures, bonds, etc.
What is stock exchange and its functions?
Stock Exchange is an organized market, which provide platform to buy and sell the securities. These organize give opportunity to investors to take part in the economic progress of the corporation. There are many functions of a stock market one of them is to make available cost effective trading platform, provide information on prices and the most important function is bound up of liquidity by concentrating demand and supply.
