What is trading in stock market? | Types of trading in stock market?
What is trading in the stock market?
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Trading Stock Market |
Trading means whenever we buy any item or any service with this purpose that we will make profit by selling it after holding that item and service for some time, then this task will be called Trading. and in laymen's term trading means business. Trading word is very popular in the stock market and is very much used.Similarly, when a person buys a stock in the stock market, the main purpose of that person is that after the stock prices rise, they can earn profit by selling that stock.
Trading is an active style of participating in the financial market to buy and hold stocks. Rather than trying to profit from long term up trends in the markets, traders look for short term price moves to profit in both rising and falling markets.
Types of trading in stock market?
There are many types of trading in Stock Market. But mainly 3 types of trading are preferred by traders.
- Intraday Trading: In the intraday trading, the stock are buy and sell on the same day. Such trades which are completed within one day are called intraday trading.
- Scalper Trading: Trade that is sold within a few minutes of buying is called scalper trading. It is often sold and sold in 5 to 10 minutes. There is more profits in this kind of stock. But the profits in it can be higher only if the amount invested is high. There are more opportunities for losses as the amount applied is also high.
- Swing Trading: The process of trading is done in a few days, weeks or months. After buying the stock, the investor keeps it for some time, such as a week or a month. After that, the stock prices wait after the increase and when the correct feeling is found. Then sell it. The Stock Market is considered by people as a dangerous sport. In which the man just drowns, but it is not so at all. This perception is completely wrong. If invested in the stock market with correct method and restraint, then the person can also make substantial profits in this thing.
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