STOCK MARKET - Investment Planning

Stock Day Trader

Any task that a person undertakes is called work. A work for monetary benefits is called economic work. Economic work creates financial returns within stipulated durations of time such as a day, a weak and a month. The daily earning through knowledge-driven skills is delicate and thin area of economic life. However, with the advent of the internet, an entirely new home-based / self-employment opportunity has surfaced. It is Stock Trading. This business has the potential to generate reasonable income everyday. However, the opportunity has a risky downside; the possibility to lose money is as great as it is to make it especially for the novice / inexperienced.

The keys to earning as a stock day trader are two, first, to gain as much knowledge about the relevant industry as possible and, second, to maintain rational expectations during wavering situations. Specialization in some specific type of stocks is plus point for profitable day trading.

Remember, majority of day traders go for short gains, buy in early and sell out the same day. Holding overnight is too much risky, especially for capital-starved traders in unstable market conditions. The golden rule of stock trading is, 'never risk more than you can afford to lose.’'

Muhammad Ilyas

CEO

SMCSE (www.smcse.com)

Stock Market - Investment Planning

Initial Public Offering - IPO

Generally, the very first sale of company shares to the public is termed Initial Public Offerings (IPOs). IPOs are often issued by smaller/younger companies seeking the capital to expand, but the approach can also be used by large companies. In an IPO process, the issuer company obtains the assistance of an underwriting firm, which helps in determining what type of security to issue (common or preferred), the best offering price and the launching time.

IPOs can be a risky investment, especially, for the individual investor, it is tough to predict what the stock will do on its initial day of trading and in the near future because there is often little historical data with which to analyse the company. In addition, mostly, the IPOs proposing companies going through a transitory growth period, which are subject to additional uncertainty regarding their future values.

The issuing of shares through an IPO is one of the primary reason of stock markets' existence, so that the IPO process is the locomotive of stock market. Entrepreneurs, venture capitalists and angel investors consider the IPOs a realistic benchmark of a new and growing firm.

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STOCK MARKET

It is an organized and regulated financial market where securities (bonds, notes, shares) are bought and sold at prices governed by the forces of demand and supply. 

The stock market can be split into two main sections: the primary market and the secondary market. The primary market is where new issues are first sold through Initial Public Offerings (IPOs). The secondary market now starts her functioning where investors can sell their securities to other investors for cash. The whole subsequent trading activities is secondary market.

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