FLOOR MARKET TRADING

Different investors who are interested in investing at the offered price of the companies go forward to purchase their shares and become part of the company. Stock exchange serves as a platform for companies to disclose the prices of their stock. The market for trading securities is known as the stock exchange. This is the main channel for investors to trade in stock and for the companies to list their prices.
On the floor the buyers and the sellers come in contact and agree on a particular price of the stock. Here trading is carried in a traditional method of auction. Traders announce their bidding price and the investors interested to buy the security at the offered price signal the trader by raising their arms. These match their bids and ask prices. This enables trade between the trader and the investor. Anybody can be a part of the floor, whether a small investor or huge companies, banks etc. Stock market trading helps the investors to invest their capital in the business which can fetch them a large profit.

New York Stock Exchange was brought up in 1792. It is the largest and most popular stock exchange. All the companies aim in listing their stocks in the New York Stock Exchange. Many requirements have to be fulfilled. An annual fee is charged for the companies to enter in this exchange. New York Stock Exchange provides data of different securities from various companies. Information of the changes in the price is displayed on the board. The stock brokers gather on the floor for conducting transactions. Investors all around look from the balcony, the floor, high above the floor etc. The podium is filled with people. People surround the scroll boards, phones and computers. Zooming of the prices is done
American Stock Exchange also carries trading on the floor. This stock exchange is situated in Manhattan. It is famous for trading in both stocks and options. This exchange is operated under National Association of Security Dealers. NASDAQ offers listing the quotes of all companies in the industry but it is popular for listing technology related companies. Launching of this exchange was done in 1971. For buying the stock it is very important to be ware of different markets. Also different markets specialize in certain type of stocks ; hence investors need to be informed for easy buying. Without stock markets it would be very difficult for the investors to find the right stock they wish to invest in. At the same time the traders would face the difficulty to approach the investors and offer their price.

Market Stratergy

Why is there a need for averaging in market? This is most unwantedstratergy followed by people all over the word. According to me ,averaging fails in the market in the long run ,keeping someprobability for the unpredictable nature of the Marketindexes . Ifcertain share or commodities fall to a great extent then there is noreason to buy that at a lower price as I have already pointed out flowwith market otherwise market will punish for going against the trend.

market emotions

Can the success ratio be 100% in predicting the formation of a trend in a market ? According to the professional traders , the success ratio can be increased maximum 80% but trading companies cannot be 100% sure of their success . so what is the ultimate reason for their huge profits ? The only reason behind their win win situation are their average profits always greater than their average lossess. If they get stuck up in some deal they'll admit their mistake quickly and book the loss and on the order hand a retail investor always wait for some miracle to happen which drains away all the profits earn in the previous deals. So the ultimatum is markets are never wrong and it,ll punish the investor until he admits his mistake. The two emotional factors that rules the person in a market are greed and fear . If a person is able to form a stratergy in a market in which both these emotions are hidden factors then success ratio always increases .

Why is it not possible to track market trend whether its up or down?
The main reason for inability to judge the trend is the nonlinear
trend followed by market, that is, the upward trend can be formed by
the market by registering higher bottom and higher lower compared to
previous low and previous high respectively . This indecisive
formation is what makes this attractive .

. Is there any lower bound to the market index ? There's a common
perception among the people that buying the stocks when the market
falls will yield them huge profits but unfortunately that doesn't
happen and eventually they are forced to book huge losses.this is
basically because of the fact that people don't follow the trend the
market follows. In nutshell , flowing with the market yields profits
going against it will yield only disappointments

MARKET INDEXES

The three top most traded markets in the world according to the trade volumes are -:
Currency trading
Commodities trading
Stock market trading.
Since only commodities and stock market are open to common traders in India,currency trading is of less importance in our analysis.
How is stock market realated to commodities market?
Since nearly every commodity is open to trade on the index.The spot price is decided on the basis of the trade taking place in the index.(spot price is the actual price we pay in order to get the physical delivery of the commodity).As evident from every day news on channels commodity market is on a life time high at the moment .this is resulting in high inflation in the society.(Inflaion is the acual increase in the price value of different commodities).With hike in inflation the commodities basic as well as luxurious are getting expensive and in turn people are left with lesss money to be invested in stocks.So in turn the stock market index fall on a global perspective.
Q.Is the sudden upward trend detrimental to our country's growth?
commodity exchange is basically for hedging purpose(Hedging means protecting onself from the unexpected changes in prices in future).Since the exchange can help against the unexpected changes in prices , the exchange serves a good purpose for the traders of the commodity but since exchange is open for all including speculators and professional traders,the prices acn always pose a wrong picture of the spot price in market.The sudden bubble formation in the prices of certain commodities resulting from speculations can always pose a great problem to the actual bearer of the situation.For example -:The gold traders (jewellers)e facing a huge problem arising out of a sudden hike in gold prices.As they are not equiped with knowledge of exchange trading they are ignorant of the ways of hedging against the sudden fallouts in gold prices.
Since commodity market is not being properly worked on by the actual traders in the market ,the futures market for commdity is not able to serve the purpose it is required.
Rather then simply opening up the markets for futures trading,Government should workout different policies of how to get the purpose of futures commodity market to the actual traders in our country.For example :In United states , every farmer hedges his position for his commodity in the commodity index in order to hedge himself againt the sudden changes in the prices of his commodity.This is reason why the American farmers own private airplanes and our Indian farmers are deprived of food.
Q.Is it possible to make money out of stock and commodity market for the investor ?
As i m a trader in commodity market ,it is not possible to make money out of stocks and commidity index on the basis of speculation.There are two types of trading techniques which are :
technical analysis trading and
fundamental analysis trading.
professional traders use tecnical analysis techniques with modern graphs ,different series ,stop loss techinues,etc.If a person follows these tools then it is possible to make money out of index but if these tools are not available then money will flow from speculator to profeesional in the long run.The speculator will always be empty handed.
But the story is still not complete .If the investor invests on the basis of strong fundamental analysis,then the position can turn in his favour in the long run but not in the short run.(fundamental analysis is done on the basis of which sector the company's in?what are the projects undertaken on past few years?,etc)