This era of unemployment has attracted many people towards online trading. If you do not know what is trading? How many types are there? And how to earn money from trading then you are missing a lot. Because very good earning can be done from online trading.
As people are increasing in the world, in the same way the needs of the world are becoming more and less resources. Lack of jobs is also a result of this. Not every person can get a good job, we all understand this. That’s why we keep looking for different opportunities to earn money.
Trading is also one of these opportunities, but it also requires some luck and understanding. To earn, you can earn lakhs of rupees a month by trading, but it is also true that you may have to suffer losses in it.
Before trying your hand in this field, you should know well what is online trading and what are its advantages and disadvantages. Some big person has said that trading is a means that can fill the pockets of the whole world, but for this you should have the ability to take risks.
What is Online Trading – What is Trading
By the way, trading means business itself, so understanding it is not a big deal. But the trading we are talking about here is an issue related to the stock market. Just a few days ago we told you about the share market. Share market and stock market are both the same thing.
If you have read that post, then you must have got some idea about trading as well. Trading is a way in which we try to buy any product at a lower price and sell it at a higher price. Due to which we get more profit in less time.
Now you must be thinking that man, this is a very complicated task. From whom to buy the product? To whom do you sell then? And how will the profits come to us? All these questions must have come in your mind immediately. Hang on, just calm down. We will tell you how all this is very easy.
The stock market makes this business the easiest, with which many companies are associated. You can become a partner by investing your money directly in these companies through online trading. Now if the company will profit, then you will also profit.
And if the company suffers, then you will also suffer. That is, online trading is a kind of investment. In this, we do not need to find customers to buy companies’ products and sell them later.
Just in this we have to buy the shares of our favorite company. There is a fixed value of 1 share of any company. You can buy as many shares as you want and later sell them when the price of the shares increases. So you must have understood what is trading and how to earn money from it.
Trading is a way in which the more money you invest, the more profit you get when you make a profit. Let us explain here by giving you an example. Suppose you want to buy Axis Bank shares and the price of 1 share is Rs.300.
Here you bought 10 shares of the company for a total of Rs.3000. Now since the price of shares of companies keeps on increasing every day in the stock market. So here you have to keep an eye on your purchased shares.
Let’s say as soon as one share of Axis Bank reached Rs.310, you immediately sold 10 of your 10 shares. How much did your 10 shares sell here? in Rs.3100. That is, in a few minutes you earned 100 rupees. That too without much effort.
In this way you can earn more money by investing more money. Stock market is a well from which you can draw as much money as you want. But before entering the stock market, you should do complete research that what is trading and how it is done.
There are many types of online trading, you need to know about each type of trading so that you can earn profit instead of taking loss. As we told you above that there are advantages to doing online trading and there are also disadvantages. Let us know about the different forms of trading.
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Types Of Trading – Types Of Online Trading
Generally, today all the online trading platforms like Upstox, Zerodha and Angleone mainly offer 2 types of trading options. One is Intraday Trading and the other is Delivery Trading. But there are mainly 4 types of trading.
1. Intraday Trading
As you must be understanding from its name that this trading takes place only within a day. That is, you buy your share on the same day and sell it on the same day. When you feel that you are making profit, you can sell your share. But you have to do all this in the same day.
2. Scalping Trading
It is considered to be the most risky trading because you do not have much time to think and understand in this. In this type of trading, you just have to hold your shares for a few seconds or minutes and then sell.
3. Swing Trading
Let us now tell you what is Swing Trading and why it is beneficial. In Swing Trading you can hold your shares for a few weeks. In this there is no pressure on you that you have to sell your shares today. You do not need to show much panic in this.
4. Positional Trading
This is the trading in which its shares are held for a long time. Like today we buy shares and sell them after 6 months or 1 year. Trading that is done for a long time is called Positional Trading. This is also called Delivery Trading.
So these were the types of trading, hopefully you must have understood well what is online trading and how many types are there. But to earn profit from trading, you have to take care of some important things so that you do not have to suffer loss.
Take These Precautions While Trading
- First of all, through whichever platform you do trading, get a good knowledge of all types of charges.
- Do complete research about the company whose shares you want to buy.
- Never buy or sell shares in a hurry.
- In trading, panic has to be kept away. So always keep calm and do trading. There are ups and downs in the market.
- Never think too much when there is a loss, because if there is profit in this business, then there is also a loss.
- Do not buy all the shares of the same company, at least buy the shares of 2 different companies.
- Do not fall into the trap of too much greed, whenever you feel that you are in good profit, then sell your shares immediately.
- Do not invest huge amount in the beginning, start with small amount first and understand trading.
- Delivery Trading is less risky than Intraday. So you can start with Delivery Trading.
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This was our article What is Trading – How many types of Online Trading are there. Hope you have got complete information about Trading from this article. If you liked this article, then do like and share it. To connect with us, like our Facebook page and subscribe to us. Thank you.