The individuals or corporations who are engaging in the trading of securities is called 'stock trader' (share trader).The stock traders are mainly stock speculators.It is very acceptable to public, because the capital needed for stock trading is very less compared to stock market investing.They usually try to get profit from short-term price volatility.It is very risky as the market direction is unpredictable. On the other hand stock investors put money to buy securities which offer returns (such as interests, income or capital gains) for an extended period of time .It may be several months or years.The fundemendals of the stock is very important in investing.
Buying or selling of shares in stock market (share market) is known as share trading (stock trading).
There are two important types of share trading.Day trading and Delivery trading.
Day trading
Purchase and sale of the same scrip/indice on the same trading day is called day trading.It is also called as 'intra-day trading' and 'daylight trading'. All positions usually closed before the market close.That is One must sell stocks before 3.30,that he bought on the day and buy scrips that he sold on the day.Selling before buying is possible on delivery trading.But you must buy the scrip before market close.It depends on speculations.It is safe compared to short term trading, because there is no over night risk.Holding stocks which bought on intraday basis is some times risky.
With the advantage of electronic trading and margin trading, day trading has become very popular among home traders.Stocks, Stock options, commodity futures, currencies, future contracts, equity index futures, and interest rate futures are some financial instruments available for intraday trading.
The main risk factor of intraday trading is it can be either extremely profitable or extremely unprofitable.So it is important to keep stop loss on intraday trading.It is possible to make heavy profits on the day in day trading.So intraday traders are sometimes portrayed as 'gamblers' by investors.
Delivery trading
According to some analysts and traders, delivery trading is secure compared to day trading.Delivery means the legal transfer and receipt of ownership rights.You have to take the delivery of shares.There is a one plus two settlement (One trading day and two other days) for delivery trading.After getting scrips into your demat account you can sell them at any time.Normally it will take up to three days.You should have sufficient money to buy shares on delivery basis.Selling before buying is not possible on delivery trading.
There are some advantages and disadvantages of Delivery Trading.The main advantage is that, the Loss of Fear of Money is very less compared to Intraday Trading. Even if the market price of your stock reduces, you can still wait for more days to get your expected price.Another advantage is that you can get dividend from your investments.The split of shares, amalgamations and bonus issues may also profitable to you.The disadvantage of Delivery Trading is the brokerage charges for Delivery Trading is high compared to day trading.Another disadvantage is that market crashes and some other factors may affect delivery trading.
Buying or selling of shares in stock market (share market) is known as share trading (stock trading).
There are two important types of share trading.Day trading and Delivery trading.
Day trading
Purchase and sale of the same scrip/indice on the same trading day is called day trading.It is also called as 'intra-day trading' and 'daylight trading'. All positions usually closed before the market close.That is One must sell stocks before 3.30,that he bought on the day and buy scrips that he sold on the day.Selling before buying is possible on delivery trading.But you must buy the scrip before market close.It depends on speculations.It is safe compared to short term trading, because there is no over night risk.Holding stocks which bought on intraday basis is some times risky.
With the advantage of electronic trading and margin trading, day trading has become very popular among home traders.Stocks, Stock options, commodity futures, currencies, future contracts, equity index futures, and interest rate futures are some financial instruments available for intraday trading.
The main risk factor of intraday trading is it can be either extremely profitable or extremely unprofitable.So it is important to keep stop loss on intraday trading.It is possible to make heavy profits on the day in day trading.So intraday traders are sometimes portrayed as 'gamblers' by investors.
Delivery trading
According to some analysts and traders, delivery trading is secure compared to day trading.Delivery means the legal transfer and receipt of ownership rights.You have to take the delivery of shares.There is a one plus two settlement (One trading day and two other days) for delivery trading.After getting scrips into your demat account you can sell them at any time.Normally it will take up to three days.You should have sufficient money to buy shares on delivery basis.Selling before buying is not possible on delivery trading.
There are some advantages and disadvantages of Delivery Trading.The main advantage is that, the Loss of Fear of Money is very less compared to Intraday Trading. Even if the market price of your stock reduces, you can still wait for more days to get your expected price.Another advantage is that you can get dividend from your investments.The split of shares, amalgamations and bonus issues may also profitable to you.The disadvantage of Delivery Trading is the brokerage charges for Delivery Trading is high compared to day trading.Another disadvantage is that market crashes and some other factors may affect delivery trading.
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