Different Types of Stock Trading

In our last blogs, we discussed the basics of stocks and how does the stock market works. Now let us discuss what are different types and segments of trading.

There are mainly 5 types of trading available in the stock market. Let us discuss in how many ways the trading can be done.

Different Types of Stock Trading
Different Types of Stock Trading

 

1. Intraday Trading:

Intraday Trading, also known as Day Trading, is buying and selling of equities on same day. The traders only hold positions from minutes to hours and closes all the trades before the market closes. However, Day trading is said to be risky but if done with discipline, traders can earn high return on the investments made.

2. Positional Trading:

Positional Trading is a trading in which the trader holds the position from weeks to months. Because of long term trading nature, the trader is not concerned with the short-term market fluctuation in positional trading.

3. Scalping:

Scalping also known as Micro Trading is done by taking very small profits repeatedly. In Scalping, trades typically occur from seconds to minutes.

4. Momentum Trading:

Momentum Trading is a trading in which trader focus on stocks that are moving in one direction in high volume. The trader typically identifies the stock which is “breaking out” & trade with the stock momentum up or down. In Momentum Trading, the trades can last from hours to days.

5. Swing Trading:

Swing Trading is a trade attempting gain from short term trend i.e. within 1 to 7 days. Since the holding period in this trading too is long, a full time job trader can earn profit by investing in it.
On our next blog, we will discuss the different segments of equity market, commodity market & how to trade in these segments. For more details on stock market or stock market tips, get in touch with ProfitAim Research now. We are a SEBI registered stock advisory firm who offers the best stock market tips in all the trading segments.
For more details on Stock Market, visit our website or give a miss call at 7049501000 now!

How Does the Stock Market Work?

Basic Terms & Working of Stock Market:

Stock exchange is a platform where instruments like derivatives and stocks are traded. Securities and Exchange Board of India (SEBI) makes the rules of conduct. If a person wants to access the stock exchanges, then they need a stock broker. Stock brokers are the mediator between seller and buyer. You can open your account with any stock brokers to get started with trading in stock market.

How does the stock market work?
Know how does the stock market work here.

The Law of Supply & Demand

It is a theory that explains the relation that can exist between supplies of the resources & demands of the resources. As per this theory, if the supply is low and demand is high, the price increases. While if the supply is high and demand is low, the price decreases.

Equity Market & Commodity Market

There are two segments in which a trader can trade in, Equity Market & Commodity Market. The terms Equity Market & Stock Market are used interchangeably with each other. Both the terms refer to the trading of Equity shares on Stock Exchanges.

On the other hand, Commodity Market is a market place where buying & selling of raw and primary material takes place. There are mainly two types of Commodity,

  1. Hard Commodity
  2. Soft Commodity

Hard Commodities are natural resources that must be mined like rubber, oil or gold. While Soft Commodities are the agricultural products or livestock like corn, soybeans, pork etc.

On our next blog, we will discuss the different segments of equity market, commodity market & how to trade in these segments. If you want to know more about stock market or stock market tips, get in touch with ProfitAim Research now. We are a SEBI registered stock advisory company who offers the best stock future tips, stock option tips, stock cash tips, commodity trading tips, equity trading tips etc.

For more details on Stock Market, visit our website or give a miss call at 7049501000 now!