The 5 different ways of trading in the Stock Market in 2022. There are many ways to earn money online in today’s time. The stock market is one way to earn. So, let’s understand what is the stock market and how to trade stocks online. The stock market or share market is a group of buyers and sellers of stocks (shares). Before we go any further let us first understand what a stock or a share is. Stock/share is a piece of a company or organization. Investors or buyers often buy different stocks depending on the market price and the different characteristics.
A stock exchange is an exchange where traders or investors can buy and sell shares, bonds. Many large companies have their shares listed on the stock exchanges.
Different ways of trading in Stock Market 2022
These are some different ways of trading in the Stock Market in 2022.
1. Intraday Trading
2. BTST Trading
3. Swing Trading
4. Positional Trading
5. Long Term
1: Intraday Trading
The Trading in which the buying and selling of stocks are done on the same day before the market closes is called Intraday Trading. If you do not sell or buy stocks before the market closes, your position will automatically be squared off. Intraday trading is also called day trading.
Stocks prices keep fluctuating throughout the whole day, and traders try to draw profits from these price movements by buying and selling shares during the same trading day. In intraday trading, you can also sell the stock first and if the stock goes down, you can buy it and make a profit, this is called short selling.
Another advantage of intraday trading is that we get leverage here, so let’s understand what this leverage is. Leverage is a kind of loan that a broker gives us for a day so that we can take more quantities of stocks and make more profit. However, Intraday trading seems to be very lucrative but it is not that easy. It requires a lot of experience & one has to work on the emotional aspect a lot.
2: BTST Trading
The full meaning of BTST is ‘Buy Today Sell Tomorrow’. You must be knowing its meaning from the name itself. In intraday trading, you have to exit the position on the same day but in BTST trading traders often make a position for the next day only by seeing the current day’s momentum of a particular stock.
For example: When the Market is about to close, I see a good upside momentum in stock then I will buy it just at the end of the day & will hold it overnight for next-day gains. Since there was momentum at closing time, It is generally seen in the next day’s opening as well. So, If there is good momentum on the next day’s opening, I will book my profit and it will be called ‘Buy Today Sell Tomorrow’.
These both ways are actually for those who want to do very short-term trading. But, there are many more different ways of trading in stock market where one can make position for few days or fe
3: Swing Trading
Swing trading is short-term trading in which traders make profits by holding shares for some time. Traders hold the stock for a few days or weeks and as the price of the share rises, they make a good profit by selling the share. Traders follow some techniques like the concept of resistance and support. Swing trading is a good way for a beginner to learn the stock market as it is less risky than Intraday Trading. In swing trading, traders take advantage of the momentum of a stock. The short-term goal is to earn money from price fluctuation in a small-time horizon.
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4: Positional Trading
Positional trading is a method of medium-term trading in which traders hold shares for a few weeks or months. Traders here after doing a good analysis take the shares and leave them for a few months and want to make a good profit. Positional trading is one of the most convenient way to trade. A college student can do it, A job person can do it, A housewife can also do it as you don’t have to track the very short-term movement of the market. For a beginner, Swing & Positional Trading are very good ways to trade & make some good profit from the stock market.
5: Long Term
It is basically a kind of Investment into good companies and holding them for a few years. In long term, investors buy shares as an asset and hold them for 1 year to 20 years. In Long term, there is no need to constantly monitor the market. Long term goal is to increase wealth over some period of time by carefully creating a portfolio of stocks. In long-term trading, you need to carefully choose the best stocks that can grow and bring good profits in the future. Be aware of strong growth stocks and good management teams. There is a lot of potential in long-term investment.
If we talk about the conclusion, then if you want to earn money daily then you can do intraday trading but for this, you need to have the technical knowledge of charts and the psychology of the market and it is also a bit risky. However, We can’t say that Intraday trading is tough and swing is easy. If you jump into without getting proper knowledge then everything will be tough. What you have to do is that understand yourself first that what type of trading you can do, how much time you can give, and what type of risk you can afford. Only then you will find your perfect trading style.
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