What is Share trading | What are the types of trading :
If you are at all interested in the stock market, then you must have heard the term trading, do you know, what is trading, why trading is done, and what are the types of trading. So read this post completely to know in detail about trading.
Actually when you start your in stock market, many words are completely new for you, about which you have no idea, like stock exchange, IPO, sensex, nifty, investor, retailer etc., and in these There is also one word from Trading. So let’s know, what is trading.
In the recent past, the speed with which the trend of investing in the stock market has become big among the people, especially the youth has seen a lot of interest in the stock market, this shows that in the coming time there will be a lot of new investors in India. There is going to be a bumper increase in the numbers.
What is Trading?
Trading means, trade, when goods or services are exchanged between two entities for the purpose of making common profits, then it is called trading. Trading means that money is obtained through trade, and this also controls the cycle of progress in the society. Trade may vary according to goods or services, but the process is almost the same.
Now if you understand trading in the financial market or stock market, what is trading? So here instead of products and services like in the general market, stocks, shares, bonds, etc. of companies are bought and sold. The person who buys and sells the stocks of companies for the purpose of profit is called trader, and the market where trading is done is called stock market.
Trading is mainly associated with making maximum profit by buying and selling stocks of companies in a short period of time, in which the trader takes advantage of the market volatility. What and how much profit will be made from the market, it depends on the mood of the market, the technique of the trader and his analysis skills. There are two main stock exchanges in India, BSE and NSE, trading hours are from 9:15 am to 3:30 pm Monday to Friday, after which the market is closed.
For trading you need to have a demat account, for which I personally consider Grow App better than other platforms, as it is a user friendly app with very easy navigation. You can download, install and register Grow App by clicking on the link given below.
Types of Trading in the Stock Market
There are three main types of stock market trading.
Intraday Trading :-
Intraday trading is also called day trading, when an investor buys and sells a stock within the same day, it is called intraday trading. This means that if you have bought the stocks of a company in today’s day, then you will have to sell those stocks today till the market closes. This type of trading is done by experienced traders, as it involves high risk, and quick decision making.
Position Trading :-
In position trading, the investor gets more time for trading as compared to intraday, as it depends on the buy and hold strategy. In this, the investor can hold the stocks for a long time, until the price of the stocks does not increase, that is, the investor can hold the stocks for weeks and months.
Scalping Trading :-
Scalping is the shortest term form of trading, in which traders take multiple trades within a single day, the number of which can range from 10 to as many as 100 trades. In this trading strategy, the trader aims to profit from small changes in stock prices, as they believe that small changes in stock prices are easier to predict than large changes. . Traders who do scalping trading are called scalpers.
Swing Trading :-
Unlike scalping, swing trading allows traders to hold positions for days and even weeks. In this, mainly traders make their decision by identifying the trend, and technical indicators are used to identify the trend, by which it is predicted that a stock will go up or down and accordingly Buying and Selling of stocks. Is performed.
As the interest of youth in trading is increasing, more and more people are starting their journey in trading every day, so this post can prove to be helpful for all those new users in the stock market. We hope, after reading this post, you must have known Trading and what are its types. If you have any question or suggestion related to this post, then you can tell us by comment below.