EQUITIES

The securities market has two interdependent and inseparable segments, the new issues (primary) market and the stock (secondary) market. The primary market provides the channel for creation and sale of new securities, while the secondary market deals in securities previously issued. The Stock market or Equities market is where listed securities are traded in the secondary market. Currently more than 1300 securities are available for trading on the Exchange.

About Equities
The Equity market also known as the stock market is where the listed securities are traded in the secondary market. This is one of the most vital areas of a market economy, as investors have the opportunity to own a slice of ownership in a company with the potential to realize gains based on its future performance. The price of shares and other assets is an important part of the dynamics of economic activity, and can influence or be an indicator of social mood More >

Trading
NSE's automated screen based trading, modern, fully computerised trading system designed to offer investors across the length and breadth of the country a safe and easy way to invest. The NSE trading system called 'National Exchange for Automated Trading' (NEAT) is a fully automated screen based trading system, which adopts the principle of an order driven market.

Clearing & Settlement
NSCCL carrries out the clearing and settlement of the trades executed in the equities and derivatives segments of the NSE. It operates a well-defined settlement cycle and there are no deviations or deferments from this cycle. It aggregates trades over a trading period, nets the positions to determine the liabilities of members and ensures movement of funds and securities to meet respective liabilities.

Risk Management
NSCCL has put in place a comprehensive risk management system, which is constantly upgraded to pre-empt market failures. The Clearing Corporation ensures that trading member obligations are commensurate with their networth.

What Is The Stock Market?

What is the stock market ?When beginner investors first enter the the trading game, they think that they have a full grasp of what trading is all about.

Usually their understanding of the stock market is limited to what they have heard or read.

Sometimes this can hinder beginner traders from really getting the bigger picture. I want to give you a clear definition of what is the stock market so you can be well equip before your first trade.
There are 2 ways to view the stock market:

a. Wall Street- it’s a place where you trade (buy and sell) stocks of companies

b. People’s opinion – you’re trading people’s opinion about a company. This opinion is represented by stocks Both are true. However, the first definition or perception does not fully represent what goes on in the stock market. It’s a definition that will not help you book profits. It’s not just a place where you simply buy or sell stocks. The stock market is more dynamic than that. Definition #2 helps you understand the market better.

So Let’s look at what is the stock market from a traders point of view:

Traders buy stocks that are being bought by the professionals and they sell stocks that are being given up by the professionals. Why? Because the opinion of the professionals matter. But wait, there’s more…
The stock market is not only comprised of professional traders. Professional or profitable traders will not be where they are right now if not for the hogs and sheep. These are the players who always get slaughtered in the stock market.

Hogs and sheep are not victims of the stock market; they are victims of themselves for getting into something without proper education and experience. They sell stocks that professionals buy and they buy stocks that professionals want to get rid of. This happens because they don’t know how to read the hints and clues that the market is giving them. This happens because they have no solid education.

Why do we need to buy and sell with the professionals?

Because their opinion is the only opinion that matters in the stock market. Professionals have the money to move a stock price higher or lower. They are the ones who dictate the game and we simply play along, and most importantly, we must always play on their side.
If the professionals’ opinion about a company’s stock is that it’s going to bring them profits in the future, they will invest money on that stock. As more traders invest with the professionals, stock price moves higher. Then, when it’s the right time, the professionals will sell and book profits. When this happens, and you don’t understand how professionals move the market, you’ll stay in the trade until the stock price has moved lower than when bought it.
If you think that you can start a move and the professionals will follow, uhm, not going to happen unless you have as much money as them and we’re talking about millions and billions of dollars.

How do you know when professionals are starting to buy or sell?

Through candlestick patterns, If you’re not familiar with candles, then this goes to show that you’re not ready to trade the market yet. The ability to analyze and read candlestick chart patterns is one skill that every beginner investor must possess.
So anyway, candles can be found in a stock chart. I know it’s not easy to imagine, but the market communicates with traders through candles. This is why, as a beginner trader, you should educate yourself about technical analysis, a study of stock charts and candles. Otherwise, you’re trading the market blindly. If you’re serious about making money in the stock market, you should invest in your education.

What if you get in the stock market without education?
I’ve said it above, hogs and sheep get slaughtered. That’s what happens to traders who do not invest in their education. Trading is a business. It’s not a hobby or a place that grinds money for anyone who’s ballsy enough to get into it. I promise, the stock market is ballsier and more cunning than anyone of us. If you want to get on her good side, get some proper education and learn how to understand her. Get intimate with her and she will repay you.