Types of Stock Market Trading

• Intraday Trading

Also, known as Day trading, it means if investors buy or sell stocks on the same day. As it is short-term, investment requires comparatively low investment. Traders try to make a profit from the price fluctuation of shares. Suppose, an investor has specifically mentioned ‘intraday’ on the portal and bought shares, then she/he must be sold those shares before the market closes for the day.

• Delivery Trading

One of the secure ways of investing in the stock market is helpful for the long term. Suppose, an investor bought stocks, he can add them to his Demat account and can be sold them according to the market value which can be in days, weeks, months, or years. Here, investors enjoy full ownership of their shares.

• Positional Trading

In this trading, traders can pick a strategy of ‘Buy and Hold’. They can hold the stocks for a longer period of time. It’s the best method for those who can patiently wait until there is a significant rise in the prices.

• Swing Trading

Here, traders can hold the stocks for one or more days to make a profit from price changes. Small trading is a strategy where one can get smaller gains in short term and cut losses quicker.

• Technical Trading

An investor might have a possibility to get a higher return, depending on his research and knowledge about the stocks. It can be done through technical market analysis. This type of research will help in knowing the price changes of stocks and making the right trading decision accordingly.