Who is Trader & who is Investor.

Trader
 Buying and selling of shares based on technical analysis or market trend for very short duration like from single day to couples of days is called trader. Mostly trading is done through out the day and with it is called as Day trading or Intraday trading.
Traders buys and sells stock but not worried about the company's performance or how strong the company is.

Investor
Buying shares after analyzing the fundamentals of the company and holding them for long term like from couple of months to couple of years is called Investor.
Investor buys company's shares only after analyzing its worth. If the current stock price is available at discount or undervalued than he buys it for long term prospective.

How stock market works.

To learn about how you can earn from stock market first of all one has to understand how it works. When a person want to buy or sell shares in the stock market then he has to first place an order with a broker or can do themselves using online trading systems. ( explained later )
When you place the buy order, the message is transferred to exchange ( either NSE National Stock Exchsnge or BSE Bombay Stock Exchange ) and the order stays in queue of exchange's other orders and get  executed if the price of that share comes to that value. Once you get confirmation of this transaction of purchased share, will be sent to your Demat account . The shares will be stored in demat account in an electric format.

TYPES OF MARKET

Basically there are two types of markets,
1. Primary market
2. Secondary market

Primary market
A Primary market is a place where a companies, government and other corporate bodies sell new shares and other financial products. In Primary market trading is not allowed.
Like any listed company sells IPO ( initial public offer ) then it happens in primary market or whenever any already existing company goes public then at that time it issue an IPO in primary market.

Secondary market
A market place where actual share trading ( Buying & Selling ) takes place is called Secondary market.
Majority of share trading in India happens in two top exchanges NSE & BSE.