Means of Earning in Stock Markets

Today I want to share and discuss on techniques of making money in stock markets.

Many of us will be aware of that a stock value increases or decreases on daily basis. But many of us will not be aware that you can make money in both cases

1. When price of share increases
2. When price of share decreases

The first case, which is fairly common and usually know by most of us is very simple. You purchase a stock which you think will go up in future. Then you hold it and sell it when it's has been appreciated in value. This is simple mathematics and doesn't involve any rocket science.

The second case which is common among traders is also known as short selling. You sell a stock which you think will go down in future. Then you wait for some time and buy that stock when it's value has been decreased. Here we are selling stock without even owning it and delivering it to other party as soon as we buy it. You will be curious and will be thinking it to do every now and then. There are certain barrier for short selling.

1. Allowed in equities for day trading only.
2. Allowed in Derivatives segment such as FnO.

So as per investor point of view short selling doesn't make any sense. Traders usually get huge benefits out of this.