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Showing posts with the label leverage

Option Trading: a dive into the derivatives

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Hello readers, welcome back to Green Bull vs Red bear! Today's blog is about a type of derivative called options. Options trading is potentially the fastest way to make a profit in the stock market, making it the most complex and risky type of trading. according to a report by SEBI about 90% of option traders make a loss in option trading while only 10 % make a profit. On average, the loss is up to 50,000 rs. But worry not as we are going to try to understand what actually is option trading and how it works. What is Options Trading? Options trading is a dynamic financial practice where investors buy and sell contracts granting them the right but not the obligation to buy (call options) or sell (put options) underlying assets such as stocks or commodities at decided prices within a particular timeframe. It's the same as holding a flexible tool for future asset transactions, contingent upon market movements, without being bound to execute them. Within this realm, traders emplo...

How to select a stock for trading?

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Hello readers today we are going to be discussing how traders select whether to buy or sell a stock to generate a substantial profit through the stock market and have a successful trade execution.  It is important to first understand the goals and objectives and what you are trying to achieve from your trades. some people see trading as a rich get-rich-quick scheme which is not true. such people end up losing money over time and gamble their money.  The right way to treat trading as a research and analytics business is to speculate on the movement of the market and plan your moves accordingly. Types of Analysis: there are two ways traders and long-term investors decide the stock to pick and when to pick the particular stock.   Fundamental analysis Technical Analysis Fundamental Analysis:  Fundamental analysis involves evaluating a company's financial health, performance, and overall value. Various tools and metrics aid in conducting a thorough fundamental analys...

Stock "Market": Types of products In stock market.

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Hello, readers today's Blog is all about why the stock market is a "Market" and what kind of products are bought and sold in the market.  this will give you an idea of what type of product is your taste and let you choose what you want to trade and make a profit in the trading business. The Stock Market is called the market because multiple products and scrips are sold and bought throughout the market.  Products Traded in the Stock Market: The following are the products that are traded in the stock market: Company Equity/ stocks Future & Options Currency/Forex Trading Commodities Company Equity / Stocks(cash trading) A company's stock can be acquired by individuals or organizations, which makes them partial owners of the business. Equity is a common term used to describe the ownership of a publicly registered company. One of the rights granted to equity shareholders is the power to vote on company matters such as the appointment of the board of directors and sign...