| It is good to know the trading system basics before | | | | * Bulls And Bears - A bullish market in the trading |
| one starts investing. Familiarity with stock market | | | | system is one where the economy is in its best |
| terms and jargon used by people involved in trading | | | | state - people easily find jobs, gross domestic |
| stocks is an added advantage. Trading stocks is one | | | | product (GDP) grows, and stocks rise. A bear market |
| of the most alluring options of making money. This is | | | | is the opposite of a bullish market. It is the condition |
| because: | | | | of recession, falling stock prices, and economy doing |
| 1. Very less initial investment is needed. | | | | really bad. |
| 2. Can be done as a side business because very less | | | | * Initial Public Offering - IPO is an offering or flotation |
| time is needed to trade. | | | | issued by a company issuing its stocks in the market |
| 3. It may let you earn money fast and allow for fast | | | | and offering it to the public for the first time. |
| liquidation. | | | | It is also important to know that there are two |
| 4. It is easy to learn the tricks of the trade and how | | | | ways - on the exchange floor and electronically - to |
| to earn profit from the share market. | | | | execute a trade. |
| Therefore, it is important to have at least a working | | | | Online Trading System |
| knowledge of the trading system before you start | | | | Online trading system is a new way of buying and |
| investing so that you do not waste time and money. | | | | selling stocks. It can be one easy option to invest a |
| Moreover, having basic knowledge helps avoid | | | | small amount, gather information about trading |
| dependency on brokers. Given below are some of | | | | secrets and trading terminology, make an analysis |
| the basic terms related to trading. | | | | using easy tools, and then make an informed decision. |
| * Shares- It is a document issued by a company | | | | Online trading involves virtually no paperwork, and |
| entitling their holder to be one of the owners of the | | | | you can get a statement of the transactions made |
| company. | | | | online anytime. You can invest anytime and anywhere |
| * Investments - They are commitments in terms of | | | | while trading online. |
| either money or capital to buy financial instruments or | | | | Online trading just demands registration and opening |
| other assets in the hope of getting profitable returns | | | | an account with online service providers online. An |
| in the form of interest, salaries, revenues, or | | | | online trader gets three accounts when he registers |
| enhancement in the value of financial instrument. | | | | online: |
| * Trading - Many people confuse this term with | | | | * Trading account which enables a person to trade |
| trading. While stocks bought with a motive to sell | | | | shares trading online. |
| them are part of trading, the intention to earn | | | | * An Internet-enabled bank account for online money |
| income from dividends or holdings for long term may | | | | transfers. |
| be termed investment. | | | | * A dreamt account where the shares get stored. |