What is Trading :
Trading means buying and selling a commodity or service with
the hope of making profits.
It is a kind of business.
For the way, the aunt who comes to sell vegetables in your
society also trades in trading vegetables.
He buys vegetables at a slightly lower price than the market
and then sells it to you at a slightly higher price.
It takes two things, the people of society get vegetables at
home, and that aunt earns a little.
If we look around us, most of the business is trading.
As he buys a grocery from the grocery store uncle .
The people who participate in the stock market are mostly of
two kinds, including investors and trading.
We know about the investors, the person who invests his own,
is called the investor, so today we will learn about Stock Trading.
What is Stock Trading :
Trading in the stock market means the purchase of Stock i.e.
Share, which is expected to make profits.
As a company bought the share and then sold it after some
time.
It can also be from a few minutes to a few weeks.
Yes, it is possible to buy and sell shares in Stock Market
even in a few minutes.
There is good news about the companies that trade in the
stock market throughout the day.
The prices of shares of those companies in the stock market
change several times every single second.
By taking advantage of this, many people sell the purchase
of shares even in minutes.
But this purchase sale so quickly can be in minutes such as
profit in such purchase sales, so the damage can happen in minutes.
Beware: You may also lose the money if you will also make
this mistake.
That is why such trading is considered to be very risky.
Also there is some sort of Stock Trading, so let us know,
Types of Stock Trading :
The main three types of stock trading or Stock Trading can
be said on how long the trader has retained the shares:
1)Intraday Trading,
2)Positional Trading and
3)Short Term Trading or Swing Trading
1) Intraday Trading (One Day Trading):
If a Trader trading a share makes both buying and selling
the share in a single day, that Trading is called ODI or Intraday Trading.
India's stock markets are running from 9:15 a.m. to 3:30
p.m.
If a share is bought and sold at the time of the two, it will
be Intraday Trading.
What we talked about in the minutes above is also Intraday
Trading.
The goal of an Intraday Trader is to take advantage of quick
movements coming into stock from the good-bad news that comes to the market.
From which he can earn profit in a short time.
But it is not necessary that the profit earned can also be
harmed.
Rather, most people are harmed by leaving some successful
traders in Intraday Trading.
That is why it is a very difficult task to succeed in
Intraday Trading.
Although those successful traders are also harmed, their
profits are much higher than their losses.
By mixing everything, they get profits in most of the time.
But it does not happen to most people.
With very few people becoming successful Intraday Trader.
For this trading, the broker lets you buy and sell shares
amounting to 10 to 20 times the money you deposited.
That is, if you have deposited Rs. 10, 000, you can also
sell purchases from 1 lakh to 2 lakhs.
2) Positional Trading (Positional Trading):
The second type of stock trading is Positional Trading.
If a trader buys a share in a day and then sells it for 1
day to one week instead of selling it on the same day, it is called Positional
Trading.
To do this, the Trader has to take delivery of that share.
For which the broker has to pay the entire amount of the
share he has purchased.
In his two days, he shares in his Demat Account.
Then he can raise his money by selling that share whenever
he wants.
(We will learn further about Demat Account.) )
Although such trading has a lower risk than Intraday, it has
an overnight risk.
Sometimes, because of any good or bad news in the bund
market, the whole market or some shares open up or too much on the next day.
The risk associated with this is called Overnight Risk.
3) Short Term or Swing Trading :
The third kind is Stock Trading, Short Term Trading.
Even in Swing Trading, overnight risk remains the same, but
intraday trading is less than a risk in such trading.
Now we know about three types of Trading, but now we know,
How to Start Stock Trading ?
You need three kinds of accounts to do Stock Trading:
1.Trading Account
2.Demat Account
3.Bank Account
1) What is Trading Account?
Trading Account is the account by which we can sell the
share for ourselves, according to your name.
It is only through this that we can send our purchase or
sale order to Stock Exchange.
For this, whether you are an investor or trader you have to
open trading account.
In addition to buying sales in Trading Account, you can also
deposit and withdraw money for purchase sales.
You will have to deposit the amount of shares you have to
buy in your Trading Account.
Then you can order to buy that share.
This order you placed goes to Stock Exchange (such as NSE
and BSE).
There are also orders from all the other people.
You'll get that share when you're selling shares on Stock
Exchange according to your Order.
And that much money will be deducted from your Trading
Account.
This way it is a means of buying and selling trading account
shares.
Now we know,
2) What is Demat Account?
With Trading Account, demat account is like a storage.
In which shares purchased by you in dematerialized form and
other Securities are deposited.
Dematerialized nature means the same format as your money in
your bank account.
This Demat account is linked with your Trading account.
So whenever you buy a share, the share you bought in two
days is deposited in your Demat Account.
Then, you can keep that share as much time as you want to
keep.
Whenever you sell that share through your Trading account,
that share is removed from your Demat account.
And the amount in lieu of the sold share is deposited in
your Trading Account.
You can take detailed information about Demat Account from :
Demat Account
The third kind of account,
3) Bank Account :
You have to deposit money into the Trading account for the
purchase sale of the share, for which you will also have to link one of your
Bank Account.
You can transfer money from your Trading Account to your Bank Account whenever you need money.
You can also link an old Bank Account, so a separate Bank
Account is not required.
