What is Trading in Stock Market..!

"If you dont mind find a way to earn money while you sleep you will work until you die"

-Warren Buffett.

Stock trading involves buying and selling shares in companies too to make money on daily price changes. Traders or Speculators/ Hedgers/Arbitrageur watch the short-term price fluctuations of these stocks closely and then try to buy low and sell high. While trading individual stocks can bring quick gains for those who time the market correctly, it also carries the danger of substantial losses. A single company's fortunes can rise more quickly than the market at large, but they can just as easily fall.

Types of stock trading:

Active trading is what an investor who places 5 or more trades per month does. Typically, they use a strategy that relies heavily on the timing of the market trying to take advantage of short-term events (at the company level or based on market fluctuations) to turn a profit in the coming weeks or months.

Intraday trading is the strategy employed by investors who play hot potato with stocks buying, selling and closing their positions of the same stock in a single trading day, caring little about the inner workings of the underlying businesses. (Position refers to the amount of a particular stock or fund you own). The day trader aims to make a few bucks in the next few minutes, hours or days based on daily price fluctuations.

Swing trading involves taking trades that last a couple of days up to several months to profit from an anticipated price move. Swing trading exposes a trader to overnight and weekend risk, where the price could gap and open the following session at a substantially different price.

Scalper trading is a trading style that specializes in profiting off of small?price changes?and making a fast profit off reselling. In day trading, scalping is a term for a strategy to prioritize making high volumes of small profits. Scalping?requires a?trader?to have a strict?exit strategy?because one significant loss could eliminate the many small gains?the trader worked to obtain. Thus, having the right tools such as a live feed, a direct access broker, and the stamina to place many trades is required for this strategy to be successful.

Each trader has its own risk and availability accordingly they choose to be one of the above.