According to specialists, stock market is an unpredictable entity and so the whole success features depend upon the market knowledge, experience, your administrative capability and finally your positive attitude.

The First and foremost step for you to understand the stock market is to understand stocks. Stock markets once again ended on negative note on account of global and domestic slow down in the economy.

Successful stock trading believes the knowledge of basic stock trading concepts, stock trading rules and stock trading strategies. Keep in mind that your stock trading strategy has to be based on your time frame. Speaking about stock trading strategies it's necessary to say that this is an essential part of stock trading.

Information for the beginner

Stock --A share of ownership, or equity, in a corporation. For example, if you buy 10,000 shares in a company with 1 million shares outstanding, you own 1 per cent of the company.

Moving Average-- In security charts, the moving average is a curve that averages price fluctuations of the security over a 50-day or 200-day interval. Each point on the moving average curve is calculated by averaging the closing prices from the previous 50 (or 200) days of trading. The moving average is a way to compare long-term price trends with recent price changes.

Fundamental Analysis-- A method of evaluating the future prospects of a company by analyzing its financial statements. It may also involve interviewing the management of the company.

Technical Analysis-- A method of evaluating future security prices and market directions based on statistical analysis of variables such as trading volume, price changes, etc., to identify patterns.

Secrets of successful investor

1) Herd mentality: Successful investors will never follow herds and go against tide.

2) Fundamentals: If you are an investor, it is better to focal point on fundamentals. If you invest in a good company with sound fundamentals with reasonable valuations, you will never lose money in long term.

3) Work hard: One should analytically work hard on research if you want to make money in stock markets. Successful investors will never put their money without enough research.

4)Shouldnot be emotion-- Don’t become sentimental with your stocks. Successful investors sell their stocks when they reach target. There should be specific reason to hold your stock even after it attains your target price.

5)Volatile stocks: These types of stocks with very high beta give exceptional returns in bull markets but may give sleepless nights in the bearish position. Successful investors will never put all their money in one stock or one sector.

The effectiveness of the moving average as an indicator is apparent by its absolute sustainability; it was one of the earliest methods of analysis and remains as a key indicator for stock analysts around the globe.