PehlaTrade

By investment it is meant that buying or selling a security specifically for a longer time period (several years).While investing an individual allocates his money as best as it is possible for him and further does not have to bother about daily fluctuations. On the other hand trading means buying and selling securities for specifically short time period(less then few months). To gain benefits traders make use of trading systems and other techniques to learn optimum short term trading patterns.They can also take help of  discount brokers . Following are some major difference between investing and trading : 1)Trading is done with primary motive of earning quick profit in short term basis. Investment is done for capital appreciation over a period of time may be few years. 2)A trader usually square off his positions on stocks he is holding in order to limit his losses.Investors buy more stocks as ultimately his returns will be growing . 3)Traders are more focused tow...

Meaning of stock market : Stock market is a market where companies which are publically held are issued and they are traded either over exchange or over the counter. It is one of the most vital component of free market economy as it offers companies with a path to raise capital by giving investors a part of ownership in their company. Stock market provides a medium to grow your capital and become wealthy. Working of stock market Stock market is divided into two main sections : Primary market and Secondary market. Primary market is one where new issues in form of IPO's (Initial Public Offering) are traded and in secondary market trading on securities which already exist in market occurs. Companies requires capital to carry out various operational and functional activities . If a company is raising funds for the first time then he will primarily launch its IPO. Here the company's overall worth and the amount of shares being issued will determine the price of its shares. To buy...

Following are some of the benefits of discount brokers over discount brokers : 1)A discount broker does not offer trading recommendations but they enables trading process for a smaller commission than a traditional broker. 2)Traders or investors of stock market who buy sell financial securities through discount brokers save a huge capital on transactions and commission which leave them with extra capital which can further be used to execute trade and earn rich returns.  3)Often investors are required to hold their position for a long period of time then it is actually required just to compensate large commission.Seldom discount brokers push certain stocks just to earn higher commission.  4)Some discount brokers offers education tools in addition to help investors and traders make a better investment decision.  5)They offer an time saving approach of trading by enabling investors perform trading with an automated trading platform. When it comes to cho...

A brokerage firm is a financial institution that enables traders and investors of stock market to buy and sell financial securities. To execute any contract in stock market two parties are required buyer (long position holder) and seller (short position holder). Basically a broker act as an intermediary between buyer and seller and facilitates them to trade on various financial securities. In return brokerage firms receives compensation in the form of commission/fees once the transaction has been executed. We have two types of brokers : 1)Traditional Brokers 2)Discount Brokers Traditional brokers or full service brokers are the oldest brokers in stock market. They usually undertake more then simply acting as an intermediary to execute the trading process.There services also includes proper researching of stock market to offer necessary recommendations to stock market players as well.Often these firms also offers margins loans in addition to certain client to purchase investment on cre...