In this article we will learn that what is Intraday, Positional and Long term Trading because if you want to invest in stock market then this terminology you will hear a lot. If you are beginners then fist you must read how much money is needed to start investing in stock market and also read Why Demat and Trading account is essential in stock market. After completing all this you have to understand Different types of segments in stock market..
Intraday Trading, Positional Trading and Long term Investing
Intraday TradingÂ
Intraday means the trading take places within the day. In simple words, the market open at 9.15 AM and close at 3.30 PM between this time frame the trades take place are known as Intraday trading. In intraday profit can be earn within short period of time because Its require smaller amount and you get extra margin from you broker.
In Intraday trading the price volatility is very high so it increase the risk of losing money. To do intraday trading you will need a high skill and proper knowledge of market. Most important thing control your emotions and mind during Intraday trading.
Positional Trading
It means you hold the positions From around one weeks to about a year. In simple word, you have purchase the Samsung company share because you know that the company is launching new product that will increase his share price and once the share price increase you just sold the share and book the profit.
In positional trading you have to trade less. you can hold the stock until you get a good profit. Its required high capital to invest and you have to check the market daily because due to gaps or bad news you can loss your money.
Long Term Investing
In Long Term Trading you hold the stock of the company for more than one year to make a huge amount of profit. long term investing is a non-leverage product. In this you will get Dividend, Bonus,etc. But to make a good return you have wait for at least 10 years. Its does not required high skill and knowledge just invest in the top company.
In long term trading if the company not able to perform according to your expectation then your money is at risk. Most important thing don’t invest according to your emotions just analysis the stock technically and fundamentally.
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Which is Best For Beginners.
If you have huge capital and lots of patience then go for long term trading. If you cannot wait for long time then positional trading is best for you but before doing this you must have the knowledge and Skill to analysis the market. If you have all the knowledge of fundamental and technical analysis then go for Intraday trading.
To start trading you needs a demat and trading with low brokerage fees then open you account at Zeroadha click here to open your trading account now . Zerodha is the best platform to Do trading in stock market.