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Daily trading in the share market

May 24, 2021

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Share market is the breadwinner of many people in the country. Some traders depend upon daily trading for their earnings. Albeit this type of trading is risky but earning potential is quite sumptuous here. Trading here means buying a certain amount of shares at a certain time and selling it later according to the profit scope, convenience, situation, etc. Sometimes these trading techniques fetch tons of money and sometimes it fetches loss as much as profits. Everything depends upon how the market is playing on a certain day, which share is skyrocketing, or which has gone for a nosedive. Reports on shares or a watch on shares can be kept by monitoring Sensex today. Sensex represents the 30 most valuable shares on BSE. So if Sensex is on an increasing spree then the market is quite bullish. Returns would also be promising. Sensex was created in 1986. What Sensex is to BSE the same as Nifty to NSE? It too is a benchmark index. Nifty 50 and Nifty Next 50 though are different things, they are merely a collection of top shares and uprising top shares in market capitalization, volume, etc.

There are different types of trading practiced by traders in the share market. Some of them are listed below:

  • Intraday trading: This type of trading is practiced by daily traders. In intraday trading, a share bought at the beginning of the day or during any time is bound to be sold before the end of the day. Market closing time is the deadline for intraday traders. Shares can be sold at anytime the traders deem perfect. If 1'O clock is the time that trader finds his share generated enough profit then he can sell it.

  • Swing trading: This type of trading has traders holding a share for typically more than a day. The majority of the fundamentalists are swing traders since changes happening in the corporate world take anywhere between days to weeks to reflect in the market. So to gain profit from those changes swing traders hold their shares anywhere between 3-5 days to even some weeks. The best shares for swing trading are shares with a large market cap.

  • Position trading: This is the most common kind of trading practice in the share markets. Here shares are held for a considerably long period. It also goes by the name of long-term investing. Position traders are least concerned with daily fluctuations. Position traders make south of 10 trades a year. Suitable shares for position traders are the ones with a large market cap and a good brand name.

  • Scalping trading: Traders practicing scalp trading are quite rare these days. Scalping trading makes traders profit off with minuscule changes in the price. Scalping trades have a very strict exit strategy. Here shares are sold within seconds or minutes. Of course, high volumes are bought to generate enough profit.


Conclusion:


Daily trading in the share market is a breadwinner for many in this world. Significant profit and losses are made daily in the share market. Only the ones with correct trading analysis and estimation can make the better out of the chaos. If you want to experience the thrill of trading, you can open an account with 5paisa.

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