You cannot trade after the market is closed or shut down. Even though trading no more requires physical presence it isn’t possible to trade after the market is shut down. You can only trade between 09:15 am to 3:30 pm, however many passive investors trade after trading hours. The orders placed after trading hours are called AMO or After Market Orders and they sometimes create a volatile market. AMO also causes price fluctuations in the share price.
You can invest in 11 different sectors in the stock market. This type of industry categorization helps the portfolio manager create a diverse portfolio and allocate funds more efficiently.
Yes, you can only trade between 09:15 am to 3:30 pm on weekdays. But you can place AMO type of orders after these trading hours.
Many traders have stock market questions related to unlisted stocks. Investing in unlisted stocks requires expertise and sound knowledge of the stocks. Beginners often lack this knowledge and can incur losses. But if your firm about the future growth of the company only then you can think of investing in unlisted stocks.
Undervalued stocks are stocks that are priced lower than their fair price. Investors find these stocks using fundamental and technical analysis. Fundamental analysis involves calculating asset value by analyzing external influences like industry trends. Technical analysis includes evaluation of price movements with the help of historic data. With these methods, traders evaluate the fair price of the undervalued stocks. You can always research more to get answers to your share market questions related to undervalued stocks.
You can find many online tools to find good stocks. You can use the stock screener to find good stocks from the pool of all the companies listed on the stock exchange. You can use different filters like valuations, the market cap of the company, so on.
Researching stocks depends on the type of investment. If it’s trading and not long term investment you can rely on historic charts, price trends, so on. and you need not invest a lot of time in research. If you have long term investment plans you need to do thorough research about the company. You need to research the company fundamentals, analyze financial statements, competitor analysis, etc. if the investment period is of more than a year.
You can find all the financial reports of a company on the company website or from stock exchanges (NSE or BSE). You can also get your hands on the annual report of the company and analyze financial statements in depth.
You can invest or apply online in IPO using your trading account.
a. Using Trading account
b. Login to your trading account and select the required IPO
c. On the trading, portal input the number of shares you want to buy and the price of the shares.
d. Once done click on submit
Before you invest in any stocks you need to review the future prospects of the company. All the small cap companies have higher growth potential as compared to the bluechip companies. But the large cap companies have already made a place in the market and they give good returns to the shareholders. To sum up, investing in small caps is sometimes more beneficial if the future prospects of the organization are promising.
It is one of the frequently asked questions in stock market. In this scenario create a watchlist when the market is high and keep an eye on the stocks. Once you identify good stocks, average out the stocks, this will reduce the chances of buying stocks at a high price.
The portfolio should not be either over diversified or under diversified. An over-diversified portfolio can make tracking a hassle and does not yield good results. On the other hand, if you invest in limited stocks in your portfolio then the falling of one stock will also impact your portfolio adversely.
The returns depend on your performing and non-performing stocks. When you have a properly diversified portfolio some of the stocks may perform well while some of them will not this will affect the returns.
It depends if you are a trader or a long term investor. If you are an active trader, you can use stop loss to control a lot of damage. But if you are a long term investor you can avoid using stop loss as the losses in long term are caused due to short term fluctuations in the market. Also, in the case of long term investments, you should prefer buying more stocks when the prices drop rather than selling them.
This is one of the common questions about the stock market and the answer is yes. Having said that becoming a millionaire by investing in stocks is not easy and requires a lot of diligence. If you wish to earn from the stock market you have to put a lot of time and effort into researching companies. To conclude the stock market is an amazing investment option but not everyone is attracted to it and mostly it is due to the fear of losing money. But with enough time and efforts, many can use this as an opportunity to create wealth. Hope you find these stock market FAQs helpful with your investment journey.