Types of Trading in the Stock Market in India

Since the joint-stock companies were getting more prominence all over the world, they were becoming a financial global cornerstone after their success in supporting the geographical expansion and economic development. The Bombay Stock Exchange, founded in 1875, was the first internet trading exchange in India and Asia. The BSE and the National Stock Exchange of India are the two primary places where stock market activity happens to take place in India. Later on, more traders are venturing into stock marketing like never before.

As per the financial goals set up by the traders, they may pick out the types of trading that are most suitable for them, based on different criteria. It would include the risk tolerance, the duration you wish to invest in the stock market and others. Here, we are categorising them based on the duration and investment strategies, which could turn out to be beneficial to aspiring stock traders who are unfamiliar with stock market trading. Given below are the types of trading in Stock marketing India.

Day Trading

Here, the traders will be holding stock for barely a few hours or minutes, before they are selling them after they have purchased them. Before the stock market closure of that particular day, a trader is supposed to end his transactions. Nonetheless, day trading could be suggested to investors and traders who have enough experience in the field and have a better understanding of market volatility.

Swing Trading:

Swing trading is mostly done for a few days, usually a maximum of one week and it could be deemed as one of the most preferred types of Trading in Stock Market in India by traders who are experts in determining the movement patterns of stocks through certain technical analysis. It is said so as it focuses on short-term stock movements and their patterns. If you are an expert stock trader who trades along with WealthWay Auxiliary, you could generate huge money by following swing trading.

Position Trading:

With the hope of gaining from equities, while you are position trading, you will be holding the stocks for long-term potential, unlike day trading. However, position trading is not suggested for the market participants who are frequent and are market specialists. They will be ignoring all those slight market movements and make a profit while the trade awaits for a considerable period prior to selling off.

Scalping:

When the traders hold the stocks for a maximum of a few minutes and earn small money frequently, it could be known as scalping. Further, the returns of this type of trading could be earned from a dozen to hundred profits during a single market day. But sadly, there are the chances of losing more rather than earning from the stock market, while you are scalping. They are also known as micro-trading. To be successful in such Types of Trading in Stock Market in India, a trader need to have the good market knowledge and should be aware of rapid transactions.

Momentum Trading:

For doing momentum trading, a trader should attempt to profit from certain momentum by selecting the stocks that are breaking out or have the possibility of breaking out. The value of these stocks will be either moving upwards or downwards, and such stocks are labelled as the ones with momentum. For example, when the price of the stocks increases, a trader would sell them that were bought in large numbers while the market was falling. On the other way round, the trader sells the equities he or she is holding, resulting in higher-than-average gains, in the event of an upward trend.

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