what is meant by trading? Why the mariket is going on high and low?

Answer 1

WANT SIMPLE EXAMPLE ? ALWAYS KEEP IN MIND IF YOU ARE IN SHARES ? STOCKS ? Suppose there are 100 people living in this world. One of them grows Onions. He sales to all 99. He grows only 50 kgs a year and everyone needs 1 Kg/yr. His growing cost is suppose half dollar and he expect to sell at 1 dollar per kg. But, demand is for total 99 Kgs. So, he can even get 2 dollar per kg. or even a half more if he is good at marketing. Then 1 more person decides to grow onions and he grows 30 kgs. The price come down for both at 1.2 to 1.5 dollars. Then 1 more comes to market and also grow 30 kgs. The price are now less then a dollar. All of them earn very less. The total demand is 100 kgs and production is 110 kgs. Now they cant afford a new comer. So they decide to make a group and jointly sale 100 kgs per year at highr prices. SO, THE STOCK EXCHANGE OR SHARE MARKET ARE THE SAME THING. THERE ARE GROUPS OF SHARE TRADERS WHO BUY TOGETHER AND WHEN PRICES BECOME HIGH SALE TOGETHER. WHEN MANY GROUP BUY TOGETHER MARKETS GO HIGH AND ORDINARY PROPLE LIKE US COME INSIDE AND BUY WHEN THE ORIGINAL BUYERS ARE SELLING. THEY ALWAYS EARN AS WORKING IN A GROUP AND WE ALWAYS LOOSE AS WORKING INDIVIDUALLY. SO, TO EARN IN STOCK MARKET, BEST POLICY IS, buy when market is low and sale when high. THUS, THIS IS THE TIME TO SALE AND NOT TO BUY. Still in puzzle ? Try to understand this logic. IF A COMPANY HAS TOTAL 100 SHARES IN MARKET. AND THE PRICE IS 1 DOLLAR. IF, ABOVE 3 ONION TRADERS BUY 50 OF THEM AT 3 TO 4 DOLLARS THEN WHAT WILL BE THE PRICE OF SHARES ? ABOVE 5 .. RIGHT ? AND THEN THEY WILL SALE AT 5 TO 6 DOLLARS TO OTHER 97 PEOPLE OF THE WORLD. U KNOW WHO WILL EARN AND WHO WILL LOOSE AT THE END OF THE DAY !!!

Answer 2

Trading is a word with many meanings, but I'm sure you are referring to the equities market (stocks).
The official definition of a stock trade is here:
http://www.investopedia.com/terms/t/trade.asp
But what you need to know is that it is buying or selling a share of stock.

The "market" is just a composite view of company stock prices. The Dow measures 30 well-established companies. The S&P500 is a better representation since it follows 500 well-established companies.

On days like Tuesday when the Fed had good news, almost every stock went up in the afternoon. Every stock that depends on consumer spending that is (which is most of them). On days like that, you can say the market "went up" and most people in stocks are happy because the "rising tide raises all ships".

But not everyone was happy. Bears/Shorts and Oil holders for one were not. There is always a sector that takes a hit when another one does well. But we'll save that for your next lesson. :)

I hope this was a little bit helpful for you.

Answer 3

trading means business of any product
market go up or down means that prices of shares of different companies go high or low

Answer 4

repeated frequent buying selling for profit is trading

buying selling without giving full payment is trading

change in demand & supply affetcs price resulting high & low in mkt

for selling high buying low follow aptistock freeware chart

detals in my other answer

Answer 5

Trading is stockmarket trading.
Due to political game & also lot of changes in economics

Answer 6

There is a set number of shares, so the more in demand they are, the higher the price, and the lower in demand, the lower the price.