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Stock Market Trading

Stock trading involves buying and selling of shares in a certain company. If you own certain stocks and shares of a company, it translates to you owning a piece of the firm. A professional or an individual who trades on behalf of a financial firm will be known as a stock trader. Stock traders are broadly classified into three categories - informed, uninformed, and intuitive traders.

What are the advantages of Stock Trading?

An individual trader will buy and sell via brokerage or an agent. On the other hand, institutional traders are mostly employed by investment companies. Stock traders provide liquidity to the markets, and employ several methods and styles for defining their strategies. Stock trading has two main types - individual stock trading and institutional stock trading.

Stock traders are different from stock investors. Stock traders trade equity securities, whereas stock investors utilize their own funds to purchase securities. The stock investor's primary goal is to produce interest income or to profit from the increase in value, also termed as capital gains.

Types of Trading in Stock Market

Primarily, there are four types of share trading. These are –

Momentum Trading

Momentum trading is one of the easiest types of trade in the stock market. Traders in this trading strategy must predict a stock’s movement to identify the right time to enter or exit.

Long-Term Trading

Among the different types of trade, long-term trading is the safest strategy. It suits most conservative investors who do not mind buying and holding stocks for years.

Swing Trading

Swing traders analyse charts in various durations, such as 5, 10, 15, 30, 60 minutes or even 24 hours. It helps them spot swings in price fluctuations..

Scalping

Scalping is a type of day trading. While intraday traders stay invested in the stock market the whole day to identify opportunities for profits.

Open Demat and Trading Account with Growthdex Consultancy Services Pvt. Ltd. OPEN DEMAT AND TRADING ACCOUNT

Why Open Demat and Trading Account with us ?

A Demat account helps investors hold shares and securities in an electronic format. It is also commonly known as a Dematerialised account. This account helps keep track of an investor's holdings in shares, exchange-traded funds, bonds, and mutual funds in one place.You can open a Demat account without a trading account. Sometimes an investor just wants to hold the shares over the long term without selling them in the near term. Such investors can store the shares in their Demat account.Safe and Secure: It provides a secure environment for storing your securities, reducing the risk of loss, theft, or damage associated with physical certificates. Convenience: Demat accounts offer easy access to your investments, allowing you to buy, sell, or transfer securities with just a few clicks.

An trading and demat account is most required for purchasing and selling and holding shares. However the trading and demat account could become dormant if there are sustained periods of inactivity. And no trade can be made through an dormant trading account until the reactivation process is completed.

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Stock Market Trading