Share market basics
Trading where a computer program places orders automatically based on pre-set rules, without a person clicking buy or sell each time.
Algo trading, short for algorithmic trading, means letting a computer program place and manage orders based on rules you define in advance. The rules might be as simple as buy Nifty futures when the 20-day moving average crosses above the 50-day, or far more complex. Large institutions generate most of the algo volume on NSE and BSE. Retail traders in India can use broker APIs, but SEBI has been tightening the rules for retail algos, so check what your broker currently permits. An algo removes emotion and speed problems, but it does not remove risk. A badly tested rule can lose money faster than a person can, because it never hesitates. Beginners should understand manual trading, backtesting and position sizing first. Automation is a tool for a tested process, not a shortcut around learning one.
VideoA share is a portion of a company. The share market is where those portions change hands. Here is how it works, what you can trade in it, and why most people who trade actively lose money.
VideoThe share market runs on two activities that look alike and are nothing alike. Investing is owning a business for years. Trading is profiting from price moves over hours or weeks. Mixing them up is behind most early losses.
VideoTrading comes in a few distinct forms, and the one you pick decides how much time, capital and stress it takes. This lesson explains intraday, swing, positional, futures and options trading with Indian examples.
