In the beginning \"newbie\" traders and investors DO NOT INVEST THE FIRST cent or dollar. No amount of money. In the beginning you LEARN HOW: A] the stock market works. B] to invest in many, many various ways. C] to properly trade D] many other concepts and aspects. Beginning or novice ['newbies\"] investors and traders ALWAYS make mistakes. In fact, throughout a person's avocation or hobby to do trading, he/she will make mistakes. In the very beginning, you READ AND LEARN about the market and how it works: Read trading books written just for beginners. As you are reading and doing research about the investments you are interested in, sometimes you'll come across a financial or investment term you never heard before. Use that book's glossary or do an on-line search. It probably won't be long when you'll feel you're ready to invest your hard-earned money. Before taking that step, you really should do research about what you are investing in. There are free, paper trading platforms; you can set up a virtual account and almost trade as though you were trading with real money. The thought processes are: 1] to have more successful trades than failing trades. 2] to minimize the losses of those losing trades. 3] \"To live to trade another day.\" Having enough money in the trading account to return to the market. ALL this is accomplished by a few true expressions used on Wall Street: Some trading expressions come to mind: A] "On Wall Street there aren't any gifts." No one gives anyone else anything - not even stock tips. B] BUlls [BUyers] earn money. BEars [SEllers] earn money. Pigs get fat. Hogs [Greedy Traders] get slaughtered. They lose the money in their trading accounts. C] \"Trees don't grow to Heaven. Neither do stocks or any other investments.\" In other words: What goes up, MUST come down! D] "Plan your trade. THEN trade your plan!" Have a trading plan with rules for that plan for each strategy.
Short selling consists of borrowing someone else's stock and selling them. You would do this since you believe that thestock will drop in price, which will allow you to buy it back at a cheaper price. It is the same concept as "buy low, sell high" but in reverse order. You will need a margin account with a brokerage firm to do this. A margin account is a brokerage account that allows you to borrow money or stock for the purpose of investing. When your brokerage firm receives your sho sell order, it will first check to see if there is another client in their firm that is holding the stock you wish to short sell in their margin account. You are not allowed to borrow the stock from an account that isn't a margin account. If the shares are available, you will be able to sell it. Short selling has a special rule called he "downtick rule". This means that your order will not execute if the last trade price on the stock was lower than the previous trade price. In other words... if the stock you wish to short sell last traded at $10 and the trade before that was at $11, your trade order will not execute until the stock "ticks" up in price. This rule was implemented to prevent short sale orders from driving down the prices of the stock during volitile and frenzied tradiing sessions. Sometimes, you may be forced to buy back the stock before you wish. This will happen because the person from whom you borrowed the stock (the identity of which you will never know) may decide to sell their shares and your brokerage firm cannot find someone else from whom you can borrow shares. This is an important risk to keep in mind when short sellling... you may be forced to buy the shares back even though you may not want to. In order for a stock to be "short-saleable", it has to be considered "marginable". there are federal rules on what makes a marginable stock, but many brokerage firms implement margin rules that are more stringent than the feds. Thus, a stock that is considered marginable in one brokerage firm, may not be marginable at another.
Group A: Shares in this category have a high Liquidity, Market Capitalization and Capital Appreciation.
Grop B1 and B2: Similar to A, but with a slightly lower Market Capitalization and Appreciation but good liquidity. There are financially healthy stocks.
Group C: It includes the odd lots of Catgories of A, B1 and B2. As u may be aware, Shares/Stocks are sold in Lots, any ODD lot remaining among the A, B1,B2 Groups ,are put under C Category.
Group F:It is a Debt Market Segment (Note A. B1.B2 are all only Equities)
Group T: Their settlement needs to be done by DELIVERY only.Trading under "T", means , actual delivery of Scrips is warranted.
Group Z: Suspended Lots of Shares. They are Suspended due to non-compliance of SEBI Norms. Vikas Chhajed
Vector Vest is a quantitative tool, meaning it sorts, analyzes and ranks stocks based on the data it receives and then recommends buy, hold, or sell statements on which you the trader can act. The complaints with this, as with any quantitative tool, is that it isn't always accurate. It is the responsibility of the trader to understand the limitations of quantitative tools, when to utilize them and when not to.
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