Wednesday, 4 November 2015

Why stock market gives you freedom to make profit

Why stock market gives you freedom to make profit?
Different traders and investors approach the stock market to multiply their income and gain good profits from the stock market. The reason for this is that the stock market gives sufficient freedom to make good profit from it. A trader can start the stock market business with minimum investment and a laptop or computer with internet connection. Also the trader can trade at any time convenient to him. The important prerequisite for the trading is to have a good strategy to trade and a good trading plan.

Another aspect in which the stock market gives the trader a lot of freedom is that the trader can choose the style in which he wants to trade. The trader can choose to trade in Intraday, short term and long term trading. Also the trader has the freedom to choose whether he wants to trade in the cash, futures or options. In cash market the traders buy the stocks on the current market price listed in the exchange. In case of futures the trader or the investor buys at a future price on the future date. In case of options the put and the call trades are initiated. The traders can take the advice from reputed advisory firms like Money Classic Research who provide adequate advice in the form of stock market tips.

The stocks are the ownership of the trader or the investor in the company. The greater the number of shares the investor buys the greater is the ownership in the company. Thus if the value of the company rises the value of the investment done by the investor also rises. Similarly if the value of the company decreases the value of the investment also decreases. The profits and the losses made by the company decide the current value of the company. Also the demand and the supply decide the market prices of the stocks. If the demand for the stocks are high the value or the market price of the stocks increases. Similarly if the demand of the stock is less the market price of the stocks goes down. The effect of news can be understood with this concept. If there is good news about the company in the market, based on the value increase of the company, the demand for the stock increases. Similarly when there is bad news about the company its value decreases and more and more people sell the stocks. Thus the market price of the stock decreases.

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