Stock markets have become a significant avenue to generate additional income. Various types of stock trading are becoming popular in the stock market. There are numerous types of trading in India. Traders tend to select trading strategies based on their financial goals and the period for which they want to invest. Most brokers have launched their mobile apps and easy-to-use trading platforms that feature a wide range of information for traders. One can explore various trading types in the stock market to get the best out of their trades. Beginner traders are generally confused about how many types of trading there are in the stock market. Broadly, there are two forms of trading: long-term & short-term. Based on investment strategies, there is technical and fundamental trading. And based on the period, the types of trading are - intraday, swing, and positional trading. This article elaborates on the aforementioned types of trading in the share market.
Other than the above types of share trading, short selling is another trading technique practiced by traders with a bearish view of the markets. Such traders typically sell shares that they do not own. The trader believes the stock prices will take a hit, and they can purchase the stock at a lower price later. Short selling also bears risk as in case of a bull run, trader would still have to purchase the securities at a much higher price to return to the broker, thereby incurring a loss.
Trading in the stock markets can lead to substantial wealth generation. There are different types of trading in the stock market which a trader can opt for basis their financial objectives, orientation towards stock trading, and the period they are willing to invest. However, stock market investments are exposed to risk. It is recommended that investors know the stock market's basics and understand how many types of trading are there in the share market before making any investment decisions.
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