- The stock market has some of the common terminologies that everyone should be aware of before entering into the stock market.
- This will also help you to understand the stock market in depth.
What is a stock?
- A stock is nothing but an equity.
- When you purchase the stock of the company, you are purchasing a small piece of that company that will also represent partial ownership.
- This is called a share.
How does the stock price move?
- If more people want to buy the stock (demand) than sell it (supply), then the price of the stock will move up.
- Conversely, if more people want to sell the stock than buy it, then there would be greater supply than demand, and the price will fall.
What are the three types of traders?
There are in total 3 types of traders.
They are as follows:
Image
Intraday traders
- They are also called short-term traders.
- These traders will not hold the stock for more than 1 day.
Swing traders
- They are also called mid-term traders.
- These traders will hold the stock for more than just a day.
- For example, they can hold the stock for 2 days, 5 days, or even 10 days.
Investors
- They are also called long-term investors.
- These people will hold the stock for a very long time.
- For example, they can hold the stock for 1 year, 5 years, or even 10 years.
Conclusion
Once you understand the basic terminologies of the stock market, then you should consider risk management and intraday trading strategies.
Frequently Asked Questions (FAQs)
Q1) What is the best indicator for the bull market?
Average Directional Index (ADX) is the best indicator for the bull market.
Q2) What is a booming bull market?
A bull market is a period of upward trending prices.
Q3) What are the main 7 types of stocks?
The main 7 types of stocks are common stocks, preferred stocks, large-cap stocks, mid-cap stocks, small-cap stocks, growth stocks, and value stocks.
Q4) What is the full form of NASDAQ?
NASDAQ stands for National Association of Securities Dealers Automatic Quotation System.
Q5) What is RSI in the stock market?
RSI stands for Relative Strength Index and is one of the most widely used momentum indicators in technical analysis. It will help the traders to identify the overbought and oversold conditions and generate potential buy and sell signals.
About Us
Nifty Trading Academy is our academy where we teach you about the stock market as well as technical analysis. We also provide live trading sessions and upload blogs for the same.