Market Basics. Review on Bombay Stock Exchange

This is basically a small advisory note of how a new investor can go about trading in the market. Since I had already posted a review Titled ''The Elephant Charge'' in the Advice section of the Stock Markets, I am posting my new review under this title.

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The share market is a very risky thing.

First and foremost before you plan to start something in the share market you need to have a very good idea what the market is.

The most easy way to understand the market is that you buy the shares of a company at a low rate and then you sell it off when the rate is high.

But then in conditions that are prevailing today you need to read the trends also known as the market sentiments that would result in the outcome of the share price.

To start with the Indian economy is based on the Bombay Stock Exchange (BSE).

It is also based on the National Stock Exchange (NSE).

The SEBI or the Securities Board of India helps in the fixing of the rates and also regulates that the companies deal fairly in the market place.

The one thing that you should always keep in mind if you plan to start the market game is to not only keep an eye on the Indian markets but also Indian corporates that are listed on foreign stock exchanges like NASDAQ, Nikkei and Dow Jones.

In many cases companies like Wipro and Infosys would invariably decide the trend of the Indian market.

The first and foremost that you need to do is start off collecting information about the basics of the market.

This can be done by searching Google.

The normal websites that I use most often are:

http://www.equitymaster.com

http://www.angeltrade.com

http://www.personalfn.com

http://www.nseindia.com

http://www.bseindia.com

I have a registered login account in nseindia and bseindia as I need to frequent the sites often.

If you do plan to start, always start with the negative mindframe that you will lose money.

Never get too greedy and if you feel that the market is likely to break or crash run with whatever profits you have.

This game can make you a millionaire in a day and can rob you million in one day.

Thus the best approach is to wait and watch and keep your cool.

So, for now, all you need to do is gather as much information as you want.

Important things that you need to know to start with are:

--What is P/E Ratio? What is it useful for.

--What are the functions of SEBI?

--Which Indian companies are listed on Foreign Stock Markets?

--What companies forms the core of BSE?

--What are range bound moves?

--What are intra day trades and how can I make money in Intra day trades?

Please note that Intra day trades are a risky business and you should take great time thinking about the companies you will be playing with.

The concept of Short Selling should be very clear in Intra day business.

This can just be stated as a drop in the Finance Ocean.

Yet if someone does wish to clarify any thing, they are most welcome to M2M me.