What are the basics of stock trading?

Stock trading term comprise end less topic to discuss. there are hundreds of method used by different trader who are regular in market
Yet there is no assurance that you will not encounter the loss and only make profit out of the market
What is believe is that first of all you have to decide that whether you are doing for short term or long term holding basis .
long term and short term trading have many difference in strategies to pursue. never ever mix it up
Long term turn out investing concept where you may probably ignore any minor news which, yet driving stock marginally, may not have major impact on company fundamentals
sometime stock flow with general trend in market that even-though  stock show strong fundamental but price flow in market direction
Most of the time, there are alway certain stock that move against the trend.
which means that when market indexes climbing they are falling. revers is also applicable

so here is the first step come where you have to see which stocks are following trends
generally we here to compare stock with major idices which  are SENSEX or NIFTY. it will provide you usefull insight.
but it would be difficult to pick stock in this ways after all we are going to trade stock not indices
Then" what to do?'
How to Select the Stock?
Basically there are lakhs of scripes which are being traded on exchange.!!
So we have to lay down a plan to pick and trade a stock
Like any other business, you requires a strategy to follow in stock trading . otherwise you will fall in bottomless pit !!
As far as trading is concern, the first thing you need to decide is your tolerance of loss
which mean upto what extent you could bear a loss ! this is of utmost important. it will help you in deciding stop loss of trade
Stop loss is essential for trading. Never forget to set stop loss.
So now as we said above find the stock moving with indice .
Once you find stock corresponding with indices, you have to decide entry point.
Entry point should be any point in trend of price moving. here you can use technical indicator like moving avaerage and volume of stock,
One thing you should bear in mind that is no stock follow straight line graph of price
it would be always in zic zac move
When stock crosses its moving  average price with high volume it would be stong indication that stock is picking trend.
if you want to confirm trend you should use RSI and MACD indicator

• To know more about RSI click here

RSI is moving with price and gaining volume support than see MACD indicator and divergance between fast moving average to slow moving average.
it would be indication of trending of stock
You see why i am telling you to see these much of data  because you will get sense of trend
fist of all you should define a list of stock which you want to trade
Do not let you greed to paralise your understanding
Means find stock with above mention criteria as a third party.  otherwise you will pick false stock out of you greed .
Please Do not take impulsive decision. Losing in stock trading always happens out of greed
After all such study you can assure only 70 to 80% accuracy of result
So even if after all study you made if result do not follow and your stop loss triggers than kindly accept the loss .
 never tries to cover up loss by average price by putting more money in stock

What is RSI? what its implication in stock market ? how to use it go get accurate result

RSI is a momentum indicator developed by Welles Wilder.
it compares magnitude of recent gain and losses over a specified period of time to measure speed and change of price movement of a security

primarily it is used for overbought or oversold conditions of given asset

RSI= 100-100/(1+RS)

where RS= Average gain of up period during specified period of time /Average loss of down period during specified period of time
default time period for comparing up period to down period is 14 trading day

traditionally it is set that RSI is considered overbought when it is above 70 and oversold when it below 30.

overbought is a position where securities price is so high that market start ripping profit by selling and market become selling dominant for that securities hence price start declining

oversold is a support to a securities that price would not fall beyond that. and it has to bounce back
at this position investor sense fair price for securities to enter into.
this are the primary signal that RSI provide
But market do not solely work on demand supply basis hence it can be possible that there would be divergence in this rule

as it can been seen that it is a comparison between high and low made by security in given period of time.
RSI also denote trend of securities and give data of support and resistance of the securities
if securities is plotting RSI chart which bounce back from 50 and reach to 80 and fluctuate in between this two position than it could been seen as securities is in bullish trend
RSI at 50 become support for that securities
Reverse is also true in bearish condition that securities is plotting RSI which resists at 60 and fall back to 30

So basically RSI gives trend of particular securities
Yes divergence can happen to this rule what securities is rising highers high but RSI is not confirming it
here chances are that securities takes up bearish movement.
 it has to be confirm with other indicators.

So basically RSI is a momentum indicator giving insight of particular stock trend in the market
but for getting accuracy we have to confirm indication with other indicator