Introduction – What is Stock Trading
This year has seen volatility in the Indian stock market. The indices have not reached a new all-time high since peaking in October 2021. Many investors are nervous now after the recent drop. When the stock market will recover is something they are attempting to predict. They are curious about the start date of the subsequent bull market.
Thought, we often understand that trading in the stock market is as easy as anything but it’s not the right thing to say. Investor behavior has changed as a result of the shift in market mood. Now an investor needs to have a thorough knowledge of the stock market, how it works and what factors move a company’s stock price. In this blog, we’ll help you understand what is stock trading, what are its types and the important strategies that you should look forward to for 2023.
What is Stock Trading?
Stock trading entails buying and selling the company’s shares in an effort to profit from daily price fluctuations. The short-term price changes of these equities are actively monitored by traders, who subsequently attempt to purchase cheap and sell high. Stock traders differ from regular stock market investors in that they perform a short-term perspective rather than a long-term one.
Trading individual stocks include the risk of significant losses in addition to the potential for rapid returns for those who clock the market right i.e. making the right move. Traders perform various important strategies to plot the stock and exit with good profits. Here are the two types of traders involved in stock trading.