| Stocks: A "stock" is a share in the ownership of a | | | | their buying and selling. In this current market scenario |
| company. | | | | there is really no such thing as more buyers today |
| Stocks Market: A place where stocks and bonds are | | | | than sellers or vice versa. Every trader needs to |
| bought and sold. In stock market stocks are bought | | | | understand that you can be on the wrong side of |
| and sold at the same time respectively by buyer and | | | | the table at anytime and only a sensible portfolio |
| seller that are generally known as traders. In brief we | | | | management system can help you go in the long run. |
| can say that a stock market / share market is a | | | | Once you have indulged in share market you must |
| public market for the trading of company stock and | | | | understand how it works. When you read you begin |
| derivatives at an agreed price. In this article I am | | | | with A-B-C, when you sing you begin with |
| going to describe how stock market trading is similar | | | | SA-RE-GA-MA, similarly when you are going to invest |
| to Newtons third law. | | | | in share market you should begin with |
| Sir Isaac Newton, an English physicist, mathematician, | | | | business-company-shares. Before you embark on |
| astronomer, natural philosopher, and alchemist, | | | | your journey to invest in stock market, teach |
| proposed a law which is known as Newton's Third | | | | yourself how it works exactly. |
| Law. | | | | In order to trade effectively in stock market, you |
| Newton's Third Law states that "for every action | | | | must make a simple plan that determine your goals |
| there is an equal and opposite reaction." I think no | | | | and needs. This will help you to identify where to |
| need to explain this one in much detail, do I? | | | | invest, how to invest and how much money to |
| Similarly, in stock market trading Newtons Third law | | | | invest. In share market, stocks are the main key |
| of trading can be implemented as follows: | | | | elements that decide your success in the market by |
| For every buying or selling, there must be an equal | | | | means of profit and loss. Before buying or selling any |
| amount of buyers or sellers on the other side. The | | | | stocks you should take a deep analysis/researches |
| stock market is a zero sum game. For every buyer, | | | | on the same stocks. |
| there must be a seller and for every seller, there | | | | At the last I can assume that all of you will have well |
| must be a buyer. But no one can predict where the | | | | understood that, trading is not only pure art, it also |
| final settlement goes, who is profiting from each of | | | | has some basic fundamentals of science. |