Let's Talk
Get In Touch
Frequently Asked Questions: Best Stock Market Learning Platform
What is a stock?
- A stock is the ownership of a fraction of the issuing company, popularly known as equity. Each unit of these stocks is called a share, for which profits are equal to the number of stocks owned.
- The company issues the stock to raise the funds to operate the business. The stockholder, also known as the shareholder, can claim the company's earnings and assets in proportion to their stock ratio. Stocks can mainly be of two types - common and preferred. Install Best Stock Market Learning Platform - TraderG to know more.
- The company issues the stock to raise the funds to operate the business. The stockholder, also known as the shareholder, can claim the company's earnings and assets in proportion to their stock ratio. Stocks can mainly be of two types - common and preferred. Install Best Stock Market Learning Platform - TraderG to know more.
What is the stock market?
- It is a public marketplace where issuing, buying, and selling stocks are done to trade on the stock exchange. Here, investors can buy and sell to build their portfolios.
- The proper functioning of the stock market is essential from the economic development point of view. The stock market is beneficial for both companies and investors. Companies can get the funds needed for the business, and investors can obtain a fraction of the profit as per the profit made by the company.
- The proper functioning of the stock market is essential from the economic development point of view. The stock market is beneficial for both companies and investors. Companies can get the funds needed for the business, and investors can obtain a fraction of the profit as per the profit made by the company.
What is a stock exchange?
- Stock Exchange is a critical component where the transactions between traders and buyers are done. It is a platform where investors are encouraged to invest in providing capital for stock exchange-listed companies. Here, all the transactions are done very openly and transparently.
- Stock Exchange acts as a mediator for the participants of the market. Some essential traded products on the stock exchange are debt instruments, shares of a publicly-traded company, exchange-traded funds (ETFs), equity swaps, indices, stock futures, and stock index futures.
- Stock Exchange acts as a mediator for the participants of the market. Some essential traded products on the stock exchange are debt instruments, shares of a publicly-traded company, exchange-traded funds (ETFs), equity swaps, indices, stock futures, and stock index futures.
How does the stock market work?
- Companies raise the capital for operating their business by selling the ownership of their stakes through shares to the investors. This helps the investors to gain profit when the company is profitable or bear loss when the company goes to failure. The price of the stocks plays a vital role, mainly depending on demand and supply.
- Share market works through broking houses, exchanges, and broker's networks. Each stock's performance will vary as per the market value. However, it gives the investors a better average annual return of more than 10 %. As the company's profit grows, it can provide better dividends for its shareholders.
- Share market works through broking houses, exchanges, and broker's networks. Each stock's performance will vary as per the market value. However, it gives the investors a better average annual return of more than 10 %. As the company's profit grows, it can provide better dividends for its shareholders.
What is a stock index?
- Stock Index is a measurable unit for the stock or is a subset of the stock market that shows the current price level compared with past price levels. It replicates a specific
- market area by measuring the basket of securities. Index has a standardised methodology and metric for the measurement. If you want to improve your portfolio, then the stock index is a benchmark to plan your investment strategy. Each share market index measures the share's performance and price movement. Some examples of the stock index are S&P 500 and the Dow Jones Industrial Average in the United States, BSE Sensex, and NSE Nifty in India.
- market area by measuring the basket of securities. Index has a standardised methodology and metric for the measurement. If you want to improve your portfolio, then the stock index is a benchmark to plan your investment strategy. Each share market index measures the share's performance and price movement. Some examples of the stock index are S&P 500 and the Dow Jones Industrial Average in the United States, BSE Sensex, and NSE Nifty in India.
How do I invest in the stock market?
- After getting the basic or advanced knowledge, you may invest in the stock market through a standard stockbroker. You must open a demat account with a proper stockbroker to do so. You must also open a trading account to buy/sell shares online. This account is linked with your pre-existing bank account where related money is transacted.
- While opening the Demat account, you need to submit some required documents. After opening the Demat account, you can start trading and investing in the stock market. You can then invest in different asset instruments like bonds, stocks, exchange-traded funds (ETFs), mutual funds, and index funds.
- With the best stock market learning platform like TraderG by your side, you can polish your knowledge in the stock market.
- While opening the Demat account, you need to submit some required documents. After opening the Demat account, you can start trading and investing in the stock market. You can then invest in different asset instruments like bonds, stocks, exchange-traded funds (ETFs), mutual funds, and index funds.
- With the best stock market learning platform like TraderG by your side, you can polish your knowledge in the stock market.
What is a stock portfolio?
- A stock portfolio comprises different assets owned by the investors. These assets include stocks, gold, funds, derivatives, bonds, etc. The money is put into these assets to generate revenue and earn profit. Proper portfolio management is crucial to ensure the invested amount grows over time.
- It is suggested by many experts to have a diversified portfolio to reduce the risk and get maximum profit. The standard portfolio types are Growth, Income, and Value per the risk capacity and investment intent. Stock Portfolio helps to foster investment-oriented risks and increases the scope of generating more profits.
- It is suggested by many experts to have a diversified portfolio to reduce the risk and get maximum profit. The standard portfolio types are Growth, Income, and Value per the risk capacity and investment intent. Stock Portfolio helps to foster investment-oriented risks and increases the scope of generating more profits.
What are dividends?
- A dividend is paid to the owners and shareholders for the retained earnings and profits. When the company makes a profit, they are either reinvested or received by shareholders as dividends. The latter is achieved by dividing the dividend per share by the share price. Dividend depends much on the per share basis, which is paid equally to the shareholders.
Not all stocks pay dividends; only a few companies pay dividends. The company's board of directors determines the price per share and how it must be given. It is a type of regular profit-sharing payment to investors.
Not all stocks pay dividends; only a few companies pay dividends. The company's board of directors determines the price per share and how it must be given. It is a type of regular profit-sharing payment to investors.
What is a bull market?
- It is a phase during which stock prices keep rising steadily. This generally is a phase of growth in the business cycle, mainly due to a more robust overall economy and better investors' confidence.
In the bull market, the investors stick to the long-term goals for the growth of their investment. During the bull market, the securities value increases, and investors can pay more weight with the expectation of more capital gains. A bull market is an indicator of better economic growth. Generally, it is difficult to predict a bull market, the experts can recognise it only when it happens. The trading volume is usually high during the bull market.
In the bull market, the investors stick to the long-term goals for the growth of their investment. During the bull market, the securities value increases, and investors can pay more weight with the expectation of more capital gains. A bull market is an indicator of better economic growth. Generally, it is difficult to predict a bull market, the experts can recognise it only when it happens. The trading volume is usually high during the bull market.
What is a bear market?
- When the stock prices keep declining steadily, we enter a phase known as the bear market. It is generally called a bear market when the investment price falls at least 20% from its high value. Here, the trend of falling stock prices continues for a prolonged period. During this phase, the investors neglect any excellent news and sell the financial assets in the market.
The main characteristics of the Bear market are:
- The economy at the broader level generally starts weakling during the bear market phase. Here, there is a decrease in gross domestic product (GDP), corporate profits decline, etc.
- The stock market declines steadily.
- There is a pessimistic approach of the investors who sell the assets.
- The bear market is observed to be sustained for around ten months.
What are the types of stocks and commodities you can invest in a stock market?
- There are many types of stocks and commodities you can invest in. You need a working knowledge of these assets to know the stock market.
The main types of stocks you can invest in a stock market are:
- Large-cap stocks
- Mid-cap stocks
- Small-cap stocks
- Growth stocks
- Value stocks
- IPO stocks
- Dividend stocks
- Non-dividend stocks
- Blue chip stocks
- Penny stocks
The main types of commodities you can invest in a stock market are:
- Agriculture: Grains and pulses
- Precious metals: Gold, palladium, silver and platinum
- Energy: Crude oil, Brent Crude, and renewable energy
- Metals and minerals: Aluminium, iron ore, and soda ash
- Services: Energy services and mining services
What is algorithmic trading?
- Algorithmic trading includes using algorithms to make buying and selling decisions based on programming rules. Here, specific instruction sets are given that calculate the trade quantity and the best execution price that can be used. Algorithms can be used for financial instruments like fixed income, equities, futures, foreign exchange, and options. With the help of this algorithm, the trade can be executed during the day without any intervention of humans or the need for any manual process.
How does algorithmic trading work?
- Algorithmic trading is a technique that works on the formula and coding based on the mathematical model. Here, technical analysis helps to strive out rapid buying and selling of shares. An appropriately back-tested strategy for a better success rate works well for you. As per the strategy, you must develop an appropriate algorithm program to make it work.
How to use an algorithmic trading platform?
- It is easy to start using the algorithmic trading platform and automate the trading processes.
You can start using the algorithmic trading platform in the following way:
- Understand the Market: You need a thorough understanding of how the market works.
- Learn to Code: You can code using coding language or with coding experts.
- Back-test Your Strategy: You can check the working of your strategy about its working.
- Choose the Right Platform: You must choose a suitable platform or broker where your algorithm can work.
- Go Live: You can start working live after making a proper strategy.
- Keep Evolving: Do not get upset if the first strategy does not work; you must keep experimenting with new methods.
What are the benefits of going for algorithmic trading?
- There are many benefits of going for algorithmic trading; some of the most important of them are listed below:
- - It allows to speed up trading activities almost within a fraction of a second.
- - You can use multiple indicators at a time and make a strategy that can give maximum benefits.
- - There are no chances of errors, and you can expect high accuracy.
- - You can avoid the human emotion involved in the trading, which avoids loss and maximises benefits.
- - You can set the best price while setting a strategy through algorithmic trading.
- - Using real-time and historical data available, you can back-test all the trading activities properly.
What are the most common strategies used in algo-trading apps?
- Although you can use any of the strategies as per your knowledge, it will be worth looking are some standard methods used.
Some of the commonly used strategies are listed below:
- Arbitrage
- Mean Reversion
- Trend-Following
- Execution Based Strategies
- Delta Neutral Strategies
- Stop Loss Modification
- Mathematical Model-Based Strategy
- Volume-Weighted Average Price (VWAP)
- Time-weighted Average Price (TWAP)
- Percentage of Volume (POV)
- Position Sizing
- Scalping
- Index Fund Rebalancing
- Market Timing Strategies
Does algorithmic trading work better than manual day trading?
-Algorithmic trading cannot guarantee making more money than the manual way. It can automate the trading process by giving proper instructions process. So, algorithmic trading is used by many traders, and they have experienced better success.
Algorithmic trading gets you rid of the chaos participated in manual trading. As this process is done automatically, less attention and time are required. You can achieve accuracy using historical data analysis and other mathematical models.
You can stop loss considerably and gain a better level of profits. Manual trading needs you to be in one place to monitor the market situation continuously. In contrast, in algorithmic trading, you can set the strategy at once and relax for the rest day, where processes can happen automatically.
Algorithmic trading gets you rid of the chaos participated in manual trading. As this process is done automatically, less attention and time are required. You can achieve accuracy using historical data analysis and other mathematical models.
You can stop loss considerably and gain a better level of profits. Manual trading needs you to be in one place to monitor the market situation continuously. In contrast, in algorithmic trading, you can set the strategy at once and relax for the rest day, where processes can happen automatically.
What factors affect algorithmic trading?
- Algorithmic trading is made in such a way as to reduce human effort and make trading activity easier.
- Although algorithmic trading is one of the better ways than manual trading, some factors impact its working.
Some critical factors that affect algorithmic trading are listed below:
- Intensifying Volatility: If the prices of the stocks keep jumping and coming down drastically, the algorithm may not work as expected.
- Ripple Effects: The ripple effects in the stock market can severely affect the working of the algorithm trade.
- Uncertainty: When there is uncertainty in the market, algorithmic trading can be affected considerably.
What is the minimum investment required to start algorithmic trading?
- To create algorithmic trading, you must be ready with some costs.
Some of the minimum essential investments required to start algorithmic trading are:
- Initial Setup Costs: Here, you have to come up with some of the primary initial setup costs. This will include a laptop or a PC with some basic configurations, relevant software with either a one-time purchase or monthly subscription and a Virtual Private Server [VPS] with the required format.
- Ongoing Costs: The ongoing cost is the regular cost that is spent monthly or yearly. This cost will include accurate real-time and historical data, high-speed internet connection cost, software subscriptions, etc.
- Trading Capital: This cost will depend on the type of trading done. The price here will include futures instruments, hedging, cover or bracket orders, and scalping.
How much risk is involved in algorithmic trading?
- Although many significant benefits of algorithmic trading make the work easier, some risks are involved.
Here are some significant risks involved in algorithmic trading:
- Chain reaction: A slowdown in one market moves the other market to other markets, and the several asset classes create a chain reaction. This is mainly due to THE high integration of global markets.
- High volatility: The changing market conditions can impact the algorithm working with A wide bid-ask spread. It can also hamper liquidity and create significant fluctuations.
- Incorrect Algorithms: If, in some ways, the algorithm is wrong, then it can manipulate the working of the algorithm causing losses due to the error trades.
- Lack of Knowledge: If there is not enough knowledge about using the algorithm, it can affect your trading, leading to losses.
- Lack of transparency: • If openness is not there, it can cause significant loss. • Imbalances in the market: Imbalances in the market can affect algorithmic trading, causing problems in working.
How much money can you make in algorithmic trading?
- The money made with algorithmic trading is not that certain or limited. You certainly can make better money when you develop a better strategy. Apart from that, the money you can make depends on your capital investment and the long-term goal with which you work.
- By using algorithmic trading, many traders have earned much more than in manual trading activities. Even many senior traders have agreed that they have made a considerable profit using algorithmic trading. Finally, good stock market knowledge, expertise and algorithmic trading can help you make better money.
- By using algorithmic trading, many traders have earned much more than in manual trading activities. Even many senior traders have agreed that they have made a considerable profit using algorithmic trading. Finally, good stock market knowledge, expertise and algorithmic trading can help you make better money.
What happens if the stock market crashes?
- Our algorithmic software on TraderG automates trading. Each of our algorithmic trading strategies pre-define the limit of loss a user can incur. It means the minute you incur a loss of the pre-defined amount before it increases, your stocks will be sold off. Thus, even when the market crashes, your loss will be limited to the extent it has been pre-defined by the algorithmic code.
How much experience do I need in the stock market to use TraderG?
- You don’t need any experience in the stock market to use TraderG since trading is automated in this app. Once you create your DEMAT account with us, our algorithmic software takes over to invest in stocks that’ll give you maximum profit. Loss is pre-defined in this app, so you can be assured not to lose too much when the market goes down. Thus, the app is safe for freshers, people with less experience in trading, and people with a good experience in trading.
- TraderG is rated as the best stock market learning platform, where you can also learn various stock market investment strategies to further your knowledge and experience in the trading sector.
- TraderG is rated as the best stock market learning platform, where you can also learn various stock market investment strategies to further your knowledge and experience in the trading sector.
How to become a user/account holder?
- It is a straightforward process:
- Download the TraderG app or open our website.
- Use your email ID and phone number to create an account.
- Upon doing so, you may choose the duration for which you wish to make your investment.
- After selecting the time frame, you choose the service you want to avail – among intraday trading, holding, or buying our preference shares.
- Next, you may select the strategy you wish to avail.
- You must complete your KYC by submitting your bank account details and legal documents.
- You can directly link your existing DEMAT account with us or create a new one if you have none.
- Within 24-48 hours, your details will be verified, after which you will successfully become a user on TraderG.
What is the minimum age required to become a user/account holder?
- The minimum age to use TraderG and avail of our services is 18 years.
What are the benefits of becoming an account holder on TraderG?
The vision behind TraderG is to help you have a second source of income along with your existing profession. It helps you to plan a better future by growing your wealth. Here’s how the app allows you with it:
- Our algorithmic software automates trading. Thus, even a fresher with zero knowledge of the stock market can make money through intraday or swing trading on TraderG.
- • In algorithmic trading, the loss is pre-defined through coding. Thus, when you start incurring a loss, your shares are sold off before this loss increases.
- Since trading is automated and encoded, your earnings from it are passive. You could simply relax while the trade is taking place.
What services does TraderG offer for its users?
TraderG offers the following services to its users:
- Intraday Algorithmic Trading: involves buying and selling stocks on the same day. You can go for options trading or index trading under this service.
- Holding Services: Under this, you can go for swing-based algorithmic trading, algorithmic positional trading, or SIP (systematic investment plan).
- Preference Shares: You can buy preference shares of ShreeG Wealth Expert Advisory Ltd by investing your capital for 5-10 years.
Which stocks are available on TraderG?
- All blue chip stocks are available on TraderG. Being listed on BSE (Bombay Stock Exchange), NSE (National Stock Exchange), and CDSL (Central Depository Services Ltd), we have large-cap equity stocks of all significant companies available for trading.