Please explain me in short and simple language how does share market works?

how to buy shares and when to buy it and when to sell it. I'm interested in long tearm investments specially in indian stock market

How to buy shares - you will need a trading account with a trading company. Not all trading companies offer trading platforms to all stock exchanges. If you are interested in the India stock market, you should preferably look for a Indian company.

When to buy - there are many techniques out there you can learn about. You can read the following web page for some techniques.

http://stocks.about.com/od/investingtech...

There is no single technique that will enable you to make profits all the time, all the way. I like the 'Dogs of the Dow' approach, but you will have to be patient and studious to learn what are the 'dogs' in the stock market you are interestedin. The golden rule many espouse is 'diversification', which I find is true for most of the time, but not all the time.

Sometimes, its not about the technique, but the timing and the opportunities available that you can tap on.

When to sell - again, there's no rocket science to this. But you have to learn to be rational (that is, not emotional) when it comes to selling. Which means even those stocks that have been raking in huge profits for you, once the stock prices go past a certain target, you HAVE to sell them. Alas, not everone (including myself) adheres to this. That is why you have unit trusts coming in, where the managers can make decisions and stick to them closely enough.