Stock Market Basics

Learn the fundamentals of stock market investing and trading.

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📈 What is the Stock Market?

The stock market is a financial marketplace where investors buy and sell shares of publicly listed companies. Companies raise capital by issuing shares, while investors participate in the growth and profits of these companies.

The stock market plays an important role in economic development by connecting businesses and investors.

🏢 What are NSE and BSE?

National Stock Exchange (NSE)

  • Established in 1992.
  • Largest stock exchange in India.
  • Popular among traders.
  • NIFTY 50 is its benchmark index.

Bombay Stock Exchange (BSE)

  • Established in 1875.
  • Oldest stock exchange in Asia.
  • SENSEX is its benchmark index.
  • Thousands of companies are listed.

💰 Types of Trading

Intraday Trading

Buying and selling shares within the same trading day. Positions are closed before the market closes.

Example:

Buy Reliance at ₹1500 and sell at ₹1520 on the same day.

Swing Trading

Trades are held for several days or weeks to capture market swings.

Positional Trading

Trades are held for several weeks or months based on long-term trends.

Scalping

Very short-term trading where traders make multiple small profits within minutes.

🕯️ Introduction to Candlesticks

Candlesticks help traders understand market psychology.

Bullish Candle

Shows buyers are stronger than sellers.

Bearish Candle

Shows sellers are stronger than buyers.

Doji

Indicates market indecision.

Hammer

Can indicate a potential market reversal.

📊 Support and Resistance

Support

A price level where buyers enter and prevent further price decline.

Resistance

A price level where sellers enter and stop further price increase.

Support and resistance help traders identify entry and exit points.

📈 Trend Types

Uptrend

Higher highs and higher lows.

Downtrend

Lower highs and lower lows.

Sideways Market

Price moves within a range without a clear trend.

⚠️ Risk Management

Never risk your entire capital on a single trade.

Important rules:

  • Use Stop Loss.
  • Follow Risk Reward Ratio.
  • Avoid overtrading.
  • Trade with discipline.

🎯 Key Takeaways

✅ Understand the stock market.

✅ Learn NSE and BSE.

✅ Know different trading styles.

✅ Understand candlesticks.

✅ Identify support and resistance.

✅ Follow proper risk management.

🚀 Start Your Trading Journey

Join TradingTik and learn:

  • Technical Analysis
  • Risk Management
  • Paper Trading
  • Live Market Sessions
  • Real Trading Strategies

Start Learning Today.