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Friday, 27 November 2015

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Different Styles of Trading in Stock Market


There are various ways to trade in the stock market. Some of the common ways to trade in the stock market are:
1)      Intraday trading
2)      Short Term Trading
3)      Long Term Trading
In the Intraday trading the stocks or the commodities are bought and sold on the same day. The profit or the loss incurred by the trader in the intraday trading depends on the price movement or the price fluctuation in the single day. If the buy signal is placed and the price raises above the buy level the profit is incurred. Similarly if the buy signal is placed and the price fall down in the day the trader will end up in incurring loss. The profit or loss in the day is limited by the price range in a particular day. The risk factor is considered high in the intraday trading. The brokerage charge is low for the intraday trading.
In the case of short term trading the stocks are bought and kept for more than one day. The period of short term trading usually ranges in weeks to months. The short term trading is also termed as swing trading. In the short term trading the profit and the loss is limited by the movement in the days which is the period of short term trading. In the short term trading the risk factor is less than the Intraday Trading and brokerage charge is more than that of Intraday Trading.
In the long term trading the trader buy the stocks with a long term view. The stocks are bought and kept for a very long period. The period of the investment ranges in years. The fundamental analysis is used extensively for long term trading. In the fundamental analysis the value of the company is determined including the total wealth and profit made by the company. Various ratios like P/E ratio are studied and used in the fundamental analysis. One of the important ways to invest in long term is to choose the stocks which are having a proper P/E ratio. The risks are Minimum in case of Long term trading and the risk can be even minimized by having a diversified portfolio.

Money Classic Research is an advisory firm which provides accurate stock market tips in the form of buy and sells signals. Money classic Research is a reputed advisory firm which is both SEBI registered and also ISO certified. The advisory firm has over the years established a reputation and brand image to provide excellent service to the clients.  

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