what is Stock Trading Or Trading Account full explained in 2020.


What is Stock Market, what is Stock Trading, what is Trading, what is Trading account, what is intra day trading, what is scalper trading, what is swing trading, what is long term trading
What is Trading and Trading Account in stock market.

If you want to get complete information related to stock market and trading account, then definitely read this post, because in this post today, we are going to give you complete knowledge related to stock market trading and trading account.

If you do not know much about the stock market, then you can read our last few posts because in those posts I have given you all the information related to the stock market and demat account and whose links are given below.


So let's get to the point without wasting time. And know what is a trading account.


what is Trading Account.


If you want to invest in the stock market and want to buy shares, then you need a trading account.

Whenever you buy the shares of a company from the stock market, two accounts are required to buy the shares, and two accounts are opened by the DP (Depository Participant) company, first trading account and the second one is demat account.

The trading account contains your shares and important information related to it and your money which you use to buy shares.

what is Trading in Stock market


People buy shares from the stock market and hold them for some time and then when the value of those shares increases, they sell them and this process of earning profits by buying and selling shares in the stock market It is called stock trading.

And in modern civilization this method is very popular among the people, and in today's time people resort to trading to earn money.

And there are many types of trading in stock market, let's us know about the following types of trading.

1). Intra-Day Trading


In intra day trading, shares are bought in which they are sold on the same day, after the opening of the stock market, you buy the stock and they have to be sold and closed. And if you do not sell the stock before the stock market closes, then dp company automatic those shares.

In intraday trading, a broker offers you about 20 times more money than the amount in your trading account. And that means Broker lends you money to invest in shares. And the money you can use to buy shares from stock market

Before closing the market on the same day, you can sell them and repay the loan money given by that broker. But broker loans are provided only to the expert or professional person. Only those who understand how to invest in the stock market and shares get this facility.

2). Scalper Trading


Scalper is a method of share trading, where the stock is sold only after 5 - 10 minutes of purchase. Generally, such trading is done only when the stock market is going down or there is a stir in the economic world due to a new law.

In this situation, this method of stock trading is used only by experts or stock market giants. Because there is more risk than profit in this trading. Which is enough to make you poor to rich in one moment and rich to poor in another moment.

Even though the risk in this type of trading is high, Still the broker companies provide you margin or loan amount.

3). Swing Or Short Term Trading


We also call swing trading as short term trading. In which we hold the shares in our demat account for some time after purchasing, as the price of our shares increases by 5-10%, we sell these shares. Which gives you a profit of 5-10%.

Broker companies do not provide margins for this type of trading. If you want to earn 5-10% returns from your own money investment then you can earn money from it.

4). Long Term Trading


When you buy the shares of a company and hold it you for a long time period, this type of trading is called long terms trading. If you hold a stock for 6 months or a year or more for a period of time after trading, then this type of trading is called long term trading.

Suppose you have bought the shares of a company for 3 years or 4 years and if this company performs well in this time period and its growth will increase, then the value of these shares will also increase. And then you can earn good profits by selling them.

All experts who invest in the stock market invest in long term trading. And this is the safest and slightly less risky investment method. All the big investors of India like Rakesh Jhunjhunwala and Dolly Khanna etc. all invest in long term trading.

Conclusion


I hope you all liked this information related to share trading and trading account today. If you like this information, then do share it and likewise follow us on our facebook page and all social handles for information related to personal finance.

And yes, if you have any question or suggestion related to stock market or trading in your mind, then you can feel free to comment. And how did you like this post, do not forget to tell us.

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