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WHAT IS THE STOCK MARKET TRADING ?

WHAT IS THE STOCK MARKET? WHAT ARE THE DIFFERENT TYPES OF STOCK TRADING?

Friends, we frequently hear the term “Trading” in relation to the stock market; today, we will define “STOCK MARKET TRADING” in this context.

STOCK MARKET TRANSACTIONS

Trading is defined as the act of purchasing and reselling any kind of product or service with the goal of profit.

The Hindi definition of TRADING is “business.” When we purchase goods or services with the intention of reselling them for a profit after a period of time, we are engaged in “trading,” and this activity is all around us. Regardless of the type of business we observe, whether it be a ration store or a vegetable stand, all proprietors purchase goods or services with the intent of selling them for a profit.

STOCK MARKET TRADING
STOCK MARKET TRADING

Trading on the Stock Exchange

As we saw, the definition of TRADING is to buy and sell goods or services with the intention of making a profit; similarly, when we purchase any stock or share on the stock market, our primary objective is to increase the value of that stock or share. When the price rises, the stock can be sold for a profit, and more than 99% of those who participate in the stock market do so by buying and selling stocks. This is known as “STOCK MARKET TRADING.”

How many types of Stock Market Trading are there?

The word “TRADING” appears to be more impulsive and RISKY than “INVESTMENT,” and this is true to a large extent, because the person doing the trading is always on the lookout for the right opportunity to make a deal. generates a profit through sales

Consequently, TRADING is a SHORT-TERM ACTIVITY, and there are several major types of TRADING:

1. INTRA DAY TRADING

Intraday trading refers to trades that are completed within a day, i.e. the act of buying and selling SHARE or STOCK on the same day, e.g. buying stock after the market opens at 9:15 a.m. and selling the same. You sell it before the market closes at 3.30 p.m. It is common for an intra-day trader to conduct five or six trades per day, and the optimal time to hold stock in this type of trading is within a few hours.

Note: For this type of trading, BROKER companies give you a margin that is ten to twenty times greater than the amount you have available, so that you can earn a profit by taking them there for the entire day and giving them their money by the evening of the same day. bring them back

STOCK MARKET
STOCK MARKET

2. SCALPER TRADING

Such trades that are completed within a few minutes, i.e. buy SHARE or STOCK and sell it within a few minutes, are referred to as SCALPER TRADING, for example, buying stock at 9:15 a.m. after the market opens. And making small but quick profits by selling it within 1, 2, or 5-10 minutes of purchasing it, it is frequently observed that the amount in this type of trading is very high, such as if you invest 10 lakhs and 100 rupees in it. If you purchase 10000 shares of Rs.100, and the share price increases by 20 paise above Rs.100, you will earn a profit of 10000 x 0.2, or approximately Rs.2000, and if the share price increases to Rs.101, you will receive Rs.1 per share. According to this, you can make up to Rs 10,000 in profit; people engage in this type of trading to earn a quick profit with small profit margins.

Note: For this type of trading, BROKER companies give you a margin that is ten to twenty times greater than the amount you have available, so that you can earn a profit by taking them there for the entire day and giving them their money by the evening of the same day. bring them back

3.SWING TRADING

Such trades that are completed within a few days, weeks, or months, i.e., after SHARE or STOCK, should be held for a few days, weeks, or months until its correct price increases, such as – JANUARY. This type of stock purchase involves selling the shares acquired in 2017 by February or April/May and is known as buying on SHARE DELIVERY.

In this type of trade, the trader hopes to increase the price of his shares by more than 5 or 10 percent on a daily basis. It is important to note that in this type of trade, the trader invests all of his or her capital. Yes, the company provides no MARGIN MONEY in this instance.

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