A STOCK MARKET is basically an aggregation of large number of BUYERS and SELLERS. By their activity these BUYERS and SELLERS give rise to multiple transactions. There is no physical transfer of goods. All that is dealt in is, SECURITIES. Now what is SECURITY? Well these consist of shares of both listed and unlisted companies. For a layman stock market is similar to a public market where both BUYERS and SELLERS quote prices for an article. The only difference is that STOCK MARKETS deal in SECURITIES unlike public markets where goods and articles are traded.
Over the years STOCK MARKETS have given birth to a large number of multimillionaires. A great number of RAGS TO RICHES stories owe their existence to the stock market. Many people try their luck in the markets. Out of them only a few, say 5 in 500, succeed. WARREN BUFFET, RAKESH JHUNJHUNWALA, RAMESH DAMANI are some of the people who made a killing in the STOCK MARKET. They are idols to many traders.
Trading in STOCK MARKET require two things, KNOWLEDGE AND DISCIPLINE. KNOWLEDGE about a trading system and following a DISCIPLINED way to adhere to that trading system. These are matters of high importance which will be dealt in next article.
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