The Indian Investor is today able to buy or sell G-Secs through more than active BSE members spread across 44 cities around the country. It was created in and provides time series data from July , onward. It also helps institutions who are holders of corporate bonds. The government of India prescribes the FDI limit and different ceilings have been prescribed for different sectors. Currently, special term orders i.
The oldest stock exchange in India. The onset of Indian stock market can be traced back to late 18 th century when East India Company started to transact loan securities. By the time s rolled in, trading in stocks of bank and cotton presses had started in Bombay.
The BSE and NSE
Size of the Trade: Too often people, either, bet everything on one trade and go broke orbet too little to make any meaning full profits to remain in the business.
Both will drivethem off the markets. In the first case there will be too much emotional attachment orthe greed, but when the trade goes against, it will be hard to press exit button and theygo broke because the position was huge. On a trading capital of sayRs 1 lac, one can afford to lose max Rs , therefore say for example ACC is trading at and stop loss is identified at , therefore max loss per share would be For capital of Rs. The above rules are notmathematical rules of exactness, but suggestive and are followed elsewhere as bestpractices in the industry.
In trading one must have an exit strategy, i. Indecision will not help. Some have pre defined profit target of three times riskfor example if risk per trade is assumed at Rs. Similarly there are different waysof exiting the trade, it is essential to have the exit strategy in place before entering thebattlefield called the stock market. In trading this is even more importantbecause leverage is used.
One generally keeps a stop exit when price adversely moves beyond say 2 times Average true range ATR or crosses key support or resistance areas. Whatever may bethe strategy it is a must to exit a losing trade. Every time no one is right all the time.
Trading or Investment, both require different set of skills, mental attitude, and divergent rules. In order to be best in the class, one can therefore either be a Trader or an Investor.
The important decision making points wherein strategy differs are Stop Loss or hold on, long term or short term, analyzing price or analyzing value, to follow the market or to predict are some of the contrasting and opposite action points which needs to be applied to either investing or trading to the exclusion of each other. Markets are not one way up, after bull market, bear market is going to follow, so one should not be biased towards only long trades, selling short should also be done with the same ease.
By refusing to sell short one forgoes huge opportunity to make money when the markets are in bear zone. Always remember, money can be made in 2 ways a. Buying Low and Selling High!
Selling High and Buying Low! The hardest thing in the financial markets is the ability to consistently execute the plan with the iron fist discipline, but which rarely happens and that is why results are so poor. It is said majority of the people do not make money, because people lack discipline. Whoever does it has the riches. Trading and Investing are essentially interlinked with human emotions. It the human being that makes the decision but the emotions act as a gatekeeper which filters out decisions.
Any money making skills has to be self acquired , no one can forever depend on others, that they will make money for them. Similarly by depending on forecasters one constantly postpones efforts to self learn the art of making money through hard work and self study.
There is no substitute for self acquired knowledge and experience. You will have to write your own exam in the markets.
No amount of copying, cheating will help you ace the exam! The economics of profit is simple, reduce costs, profits will automatically increase, other things remaining same. The flat fees of Rs. This may seem irrational but it is possible because of advent of technology, businesses are now becoming digital driving down their cost of operations dramatically.
The flat fee brokers like SAMCO are just passing on the benefits of cost reduction at their end which every trader and investor must avail off in order to reduce costs and increase profits dramatically.
It is far more difficult to swim against the flow of the river, but very easy to flow with it. Similarly once the phase of the market is identified bull or bear, then one should trade or invest in that direction.
Also, it is not necessary to trade compulsively all the time. More trading doesn't mean more return. It has an up time record of NSE has taken huge strides in technology in these 20 years. In , when trading started, NSE technology was handling 2 orders a second. This increased to 60 orders a second in Settlements have always been handled smoothly. The list of various modules can be found at the official site of NSE India. NCCMP covers subjects like equity markets, debt markets, derivatives, macroeconomics, technical analysis and fundamental analysis.
Successful candidates are awarded joint certification from NSE and the concerned. On 8 July , Sucheta Dalal wrote an article on Moneylife alleging that some NSE employees were leaking sensitive data related to high-frequency trading or co-location servers to a select set of market participants so that they could trade faster than their competitors.
NSE alleged defamation in the article by Moneylife. The Bombay High Court has stayed the order on costs for a period of two weeks, pending the hearing of the appeal filed by NSE. From Wikipedia, the free encyclopedia. Retrieved 24 April SEBI has a tough job ahead". The elusive retail investor: Narional Stock Exchange of India Limited. Retrieved 7 January Stock exchanges in India. Largest stock exchanges by market capitalization.
World Federation of Exchanges. Primary market Secondary market Third market Fourth market. Common stock Golden share Preferred stock Restricted stock Tracking stock. Authorised capital Issued shares Shares outstanding Treasury stock.
Electronic communication network List of stock exchanges Trading hours Multilateral trading facility Over-the-counter. Alpha Arbitrage pricing theory Beta Bid—ask spread Book value Capital asset pricing model Capital market line Dividend discount model Dividend yield Earnings per share Earnings yield Net asset value Security characteristic line Security market line T-model. Algorithmic trading Buy and hold Contrarian investing Day trading Dollar cost averaging Efficient-market hypothesis Fundamental analysis Growth stock Market timing Modern portfolio theory Momentum investing Mosaic theory Pairs trade Post-modern portfolio theory Random walk hypothesis Sector rotation Style investing Swing trading Technical analysis Trend following Value investing.
The National Stock Exchange of India Limited (NSE) is the leading stock exchange of India, located in Mumbai. The NSE was established in as the first demutualized electronic exchange in the country. NSE introduced for the first time in India, fully automated screen based trading. It uses a modern, fully computerised trading system designed to offer investors across the length and breadth of the country a safe and easy way to invest. Most of the trading in the Indian stock market takes place on its two stock exchanges: the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). The BSE has been in existence since The NSE, on the other hand, was founded in and started trading in