What Is Trading - Earn Regular Income From Trading

Hello friends, we often hear about trading Like (Equity Market, Commodity Market, Forex Trading) in the stock market, many people earn millions by investing in trading. But thousands of people also have loss. What is trading? There is a difference between trading and investment, what are the types of trading and regular income can be earned from trading. Today I will explain all these with details. 

What Is Trading

What Is Trading?

Friends, Trading is called business in Hindi, which means buying something and selling it at increased prices. So that we can increase the profit on our investment more. Similarly, buying shares in the stock market and as soon as the price of the shares increases, To earn profit by selling it, we call Trading in the stock market. Now a lot of people think that they do the same in investment. What is the difference between trading and investment?

  • In investment, we hold shares for a long time like 1 YR, 5 YR, 10 YR. (In trading we hold shares for a very short period of time such as - 1 Minutes, 1 Hour, 1 Months)
  • In investment, we buy the shares of the good company because we hold the shares of the company for a long time in the investment. (In trading, we do not know about any details of companies and buy only by looking at the price of their shares. Because in trading we mean by the movement of price and as soon as the price rises, we make money by selling the shares)
  • In investment, we get profit after a long time, there is less risk in it. Because we buy the shares of good companies. (In trading, we get profit very quickly, such as 1 day, 1 hour, but there is more risk in it. Because the price movement is random in the short term)

The biggest difference between investment and trading is attitude. Bcoz

Investment - In investment, before investing in any company, we get a lot of information about it and analyze it. That the shares of the company whose shares we are buying will increase or decrease in the long time period.  (Trading - If we buy the shares of a company without studying the company. Have bought shares only by looking at the Price package of that company. So that as the price of the company increases, we earn money by selling shares. So we will call it trading)

Fundamentle Analysis - Friends study the company carefully and understand their business, we call Fundamental Analysis & we must do a fundamental analysis of the company before investing. But if we study the price of shares of a companies & try to predict its pattern, Then we call it Technical Analysis & We must do technical analysis of the shares before trading.

Types Of Trading

When we think about trading, first of all we have to find out which one to trade and for this we should know How many types of trading are there.

There are 4 Types of Trading

Scalping Trading

In this type of trading we buy the shares for a few minutes. And as soon as the price becomes a little bit incremental, then we earn a profit by selling the shares.

For Example - Suppose you bought 10000 shares of a company on 100 rupees Per shares. And after a few minutes, if the price of the shares is increased from 100 rupees to 100.50, then sell it and earn a profit of 5000 rupees. So this is what we will call scalping trading.

Intraday Trading

The second type of trading is call intraday trading. In this type of trading, we hold the shares for a few hours & the same day, before the market closes. We earn profits by selling the shares.

Swing Trading

The third type of trading we call swing trading. In this type of trading, we hold shares for a few days. & earn profit by selling the shares within one or two weeks.

Position Trading

Fourth type of trading is called position trading. In this type of trading, we hold shares form a few weeks to a few months. & then earn profit by selling them.

Can We Earn Regular Income From Trading

Friends, now we will know that we can earn regular income from trading. Yes friends, we can earn regular income from trading. But it is not possible to earn as much as possible.  

If you want to earn more money from trading, then you will need a lot of money. Friends, if you want to earn more profit in trading to invest money then we will have to buy more shares for which more money will be required. Along with money, We should have a good knowledge of technical analysis. Only then we will be able to understand the price pattern. And will be able to buy or sell shares at the right time. Along with this, We'll have to understand the use of stoploss well to keep the loss to a minimum. 

My Last Words
And friends, The most important thing in trading is to constantly learn from your mistakes & to not give up. Because every successful trader is successful only when he continuously improves his trading. So if you also want to become a successful trader then follow all these points well.

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