Different Types of Stock Trading

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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.

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.
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