What is trading? How many types of trading are there? 2022
What is Trading how many types of trading? : Hello friends, how are you, once again you are very much welcome in such an article of our website. Today we have again appeared in this post with very interesting and news full information for you. If you guys want to get any information about Trading. So you can read this post of ours. Because today we are going to tell you a lot about trading, which will develop your store of knowledge.
Friends, trading is becoming very popular in today’s world because people are showing great interest in it. There are also many people who mostly shy away from going to the Stock Market. Because this question always bothers them that what is trading and how many types of trading are there. What we have to do for trading, what information we should have, today many small retailers have entered the stock market.
Those who do not understand the difference between Trading and Investment, if you also do not know the meaning of the word Trading. So today in this post we will explain to you the meaning of Trading very closely. That’s why you have to stay connected with me till the end, let’s know what is Trading?
What is Trading?
If we explain to you in simple language, then Trading is called business in Hindi, that is, the profit made on exchanging any item or service is Trading.
Stock Market Trading is also of such a type that we earn profit by buying and selling any item. In exactly the same way, in the Stock Market, instead of commodities, profits are earned by buying and selling shares of companies. The trading time period is 1 year, which means that the lion has to be bought and sold within 1 year. If we sell the shares after 1 year, then it is called investment, it is based on online business in a way.
Explain as an example, if we are buying shares in the Share Market, then many other people like us will be selling those shares. Let us relate this to our daily life, Mr. Mali, you bought any item from the wholesale store for ₹ 50, now later you are selling it to the customer by charging ₹ 60. If you do this daily then it is called trading.
Similarly, Share Market also happens, you buy that share. And after the increase in the price of the stock bought within 1 year, it is sold, then it is called Trading in the Stock Market.
Trading is also called very risky because in this no one knows what will be the difference in share price or movement after some time. If you like the news related to the lion, then the share price will appear faster, do the opposite. So if the news related to the stock gets bad, then there is a slowdown in the share price.
How many types of Trading are there?
Trading in Share Market is divided into four parts.
scalping trading
intraday trading
swing trading
Positional Trading
1) What is Scalping Trading?
Scalping Trading The trade that is traded for a few seconds or minutes means that traders who buy and sell shares only for a few seconds or minutes. Such traders are called scalpers. For your information, scalping trading is considered the most risky.
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2) What is Intraday Trading?
Intraday Trading The trade that is traded for 1 day i.e. those traders who buy shares after the market opens (9:15 am). And sell before leaving the market at 3:30 pm. Such traders are called intraday traders. For your information, let me tell you that intraday trading scalping traders are a little less risky, you can search more on Google to get more information about intraday trading.
3) What is Swing Trading?
Swing trading is a trade that buys and sells a stock for a few days. That is, those traders who sell the stock after buying it for 1 or 2 weeks. In this, traders do not have to look at the charts for the whole day. It is better for those job students etc. who cannot give their whole day in trading.
4) What is Positional Trading?
Positional trading is a trade that is held for a few months. This is done to capture the long-term movement in the market so as to make a decent profit. There is not much effect on the daily up and down in the Share Market, it is less risky than all other trading.
What is the difference between Trading and Investment?
- In trading, shares are bought for short term, while in investment, shares are bought and saved for a long time.
- It is very important to have knowledge of technical analysis in trading, he should get information about fundamental analysis in investment.
- The trading period is up to 1 year, while the investment period is more than 1 year.
- The people who do trading are called traders and the people who invest are called investors.
- The trades are done to earn auditor profits and whatever profits are made by the investor long term.
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what have you learned?
As friends, we have told you through this post today that what is Trading and how many types of Trading are there? 2022 Apart from this, today we have told you what is the difference between Trading and Investing? I hope we have explained everything in detail to you. You must have liked our today’s information, apart from this this post remains useful for you. So apart from your friends, definitely share it on your social media account. And if you have any question or suggestion related to this post of mine, then you can reach us through the comment section below, we will help you fully.