Understanding the stocks market while trading stocks.

The stocks market is a place where we trade stocks. All the traders have only one motive in stock market: "Making profits and lots of it." Everyone among the traders have only one motive in stocks market, sell stocks at price more than the buying price. They all are trying to make money from trade and ultimate action involves taking money of one trader by another trader. But it's not illegal, it's all legal.

Stocks market have huge crowd of people. Some of them are experts in the field of trading stocks and some of them are armatures and they all are trading same thing: stocks. All are trying their best to maximize the profits they can make. Some do make large amount of money and some do not. It's just like a war. If one wins in war, then the other party must lose. This is exactly what happens in Stocks market. If a trader earns more money then another trader loses money. Just like in gamble.

Next element is the broker who arranges the meeting of a buyer and the seller. Buyers set limit and place bid, seller puts price of the share and if everything goes okay then the transaction takes place. Here, broker takes commission and there is tax on capital gain also. Huge amount of money is taken away in the form of capital gain tax. Further more there is commission for the broker too.

Final element of the stocks market up to now is government. It makes sure stock market is regulated in some under developed countries. There is no regulation in developed countries and they all are trying to create some profit as the trader trades his or her amount.