Equity Trading Tips

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Equity Trading Tips

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In Stock Market, Equity trading is the buying and selling of company stock shares. Shares in large publicly traded companies are traded through one of the major stock exchanges, such as the New York Stock Exchange and the London Stock Exchange(LME), which serve as managed auctions for stock trades. Stock shares in smaller public companies are bought and sold in over-the-counter markets. – PowerPoint PPT presentation

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Title: Equity Trading Tips


1
Research Via Financial Services
2
About us
  • Research via is a leading financial services
    provider with presence in Indian and other global
    capital markets. With its full fledged research
    operations, Research via has proven itself as
    Investment Advisory Company that produces and
    delivers high accuracy tips and recommendations
    for
  • Equity Tips
  • Derivatives Tips Futures and Options
  • Commodity Tips MCX, NCDEX and COMEX
  • Forex Tips Domestic and International

3
Our Vision
  • Research via believes that its existence depends
    upon its product. Keeping that in mind, Research
    via dedicates more than 70 of its revenues
    toward its research, product and services.
    Research via stresses on maintaining a high
    standard in its research practice, its research
    team and its research systems and makes
    investments in constant system up-gradations,
    training and development and top of the line
    software subscriptions. Research via focuses on
    providing only the BEST to our precious clients
    and that reflects in our track sheets.

4
Our Products
  • Equity Trading Tips
  • Base Metal Tips
  • MCX Gold Tips
  • Free mcx tips
  • Nifty tips
  • Commodity Trading Tips
  • Nifty options tips
  • Crude oil tips

5
Reports from Research Corner
  • It is mandatory to know for a trader the exact
    coverage depth of the market in which he is
    trading.
  • That is why Research via brings to you daily
    weekly the market report directly from the
    Research Counter for
  • Equity
  • Commodity
  • Forex

6
EQUITY TRADING
7
  • In Stock Market, Equity trading is the buying and
    selling of company stock shares. Shares in large
    publicly traded companies are traded through one
    of the major stock exchanges, such as the New
    York Stock Exchange and the London Stock
    Exchange(LME), which serve as managed auctions
    for stock trades. Stock shares in smaller public
    companies are bought and sold in over-the-counter
    markets.
  • Equity trading can be performed by the owner of
    the shares, or by an agent authorized to Trade on
    behalf of the share's owner. Proprietary trading
    is buying and selling for the trader's own loss
    or profit. In this case, the principal is the
    owner of the shares. Agency trading is buying and
    selling by an agent, usually a stockbroker, on
    behalf of a trader. Agents are paid a commission
    for performing the trade.
  • Major stock exchanges have market makers who help
    limit cost variation (volatility) by buying and
    selling a particular company's shares on their
    own behalf and also on behalf of other traders.
  • Over the past 15 years with the popularity of the
    internet and brokerage discount firms, it has
    become increasingly luring for the average
    investor to partake in their own financial
    planning and direction of their future. Although
    trading can be incredibly stressful and dangerous
    financially, many people have made it their
    business in place of a 9 to 5 job. Individuals
    that pursue this non-mainstream career usually
    will have a knack for tech analysis, money
    management, tape reading and trader's psychology
    as well as enjoy working in a fast paced
    competitive environment.

8
Equity Trading Strategies
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4 Common Active Trading Strategies
  1. Day Trading
  2. Position Trading
  3. Swing Trading
  4. Scalping 

10
Day Trading
  • Day trading is perhaps the most common known
    active-trading style. It's often considered a
    pseudonym for active trading itself. Day trading,
    as its name implies, is the method of buying and
    selling securities within the same day. Positions
    are ended out within the same day they are taken,
    and no position is held overnight. Traditionally,
    day trading is done by trained traders, such as
    specialists or market makers. However, electronic
    trading has opened up this practice to novice
    traders

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Position Trading
  • Some actually consider position to be a
    buy-Sell-and-hold strategy and not active
    trading. However, position trading, when done by
    an progressive trader, can be a form of active
    trading. Position trading uses longer term charts
    - anywhere from daily to monthly - in
    consolidation with other methods to determine the
    trend of the current market direction. This type
    of trade may last for many days to several weeks
    and sometimes longer, depending on the trend.
    Trend traders look for successive higher up or
    low highs to determine the trend of a security.
    By jumping on and riding the "wave," trend
    traders aim to profit from both the up and
    downside of market movements. Trend traders look
    to decide the direction of the market, but they
    do not try to forecast any price levels.
    Typically, trend traders jump on the trend after
    it has incorporated itself, and when the trend
    breaks, they usually exit the position. This
    means that in session of high market volatility,
    trend trading is more difficult and its positions
    are generally reduced.

12
Swing Trading
  • When a trend breaks, swing traders typically get
    in the game. At the end of a trend, there is
    usually some price volatility as the new trend
    tries to establish itself. Swing traders buy or
    sell as that price volatility sets in. Swing
    trades are usually held for more than a day but
    for a shorter time than trend trades. Swing
    traders often create a set of trading rules based
    on technical or fundamental analysis these
    trading rules or algorithms are designed to
    identify when to buy and sell a security. While a
    swing-trading algorithm does not have to be exact
    and predict the peak or valley of a price move,
    it does need a market that moves in one direction
    or another. A range-bound or sideways market is a
    risk for swing traders.

13
Scalping
  • Scalping is one of the quickest strategies
    employed by active traders. It includes
    exploiting various price gaps caused by bid/ask
    spreads and order flows. The strategy generally
    works by making the spread or buying at the bid
    price and selling at the ask price to receive the
    difference between the two price points. Scalpers
    attempt to hold their positions for a short
    period, thus decreasing the risk associated with
    the strategy. Additionally, a scalper does not
    try to exploit large moves or move high volumes
    rather, they try to take advantage of small moves
    that occur frequently and move smaller volumes
    more often. Since the level of profits per trade
    is small, scalpers look for more liquid markets
    to increase the frequency of their trades. And
    unlike swing traders, scalpers like quiet markets
    that aren't prone to sudden price movements so
    they can potentially make the spread repeatedly
    on the same bid/ask prices. 

14
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