What is Trading?

Introduction: What is trading?

Well, many people have never traded before, but they want to know how to earn money from the stock market. How do they deal? Today’s topic is dedicated to those who want to learn to trade, or if they are already trading, how can you make your trading better? If there are some tools for that, I will tell you that too. You will understand how to trade step by step, and for that, the platforms you need.

What is Trading

 When we talk about trading, I will give you my definition. Many people think that trading means that we have bought a stock and sold it at a high price. This is trading. If we buy a stock for the long term and sell it for the long term, if it is more than a year, then the stock we hold for more than a year will be called an investment. And within a year, if we sell a stock, then we will call it trading. So most of the new people who do not know anything about the stock market understand only this. You may also think that this is what happens in the share market: we buy shares, their prices increase, they become multiples, and then we sell them. Your understanding is fine. So far, but now this trading is not just that. I will tell you in very simple words what trading means.

Trading means when it comes to stock market leverage. Leverage means that if you have less money, you trade with more money. What will be the benefit of this? If a person has one lakh rupees and he simply buys the share and sells the share, then he will have a profit or loss according to one lakh, which means if a share of one lakh becomes two lakhs, then if the shares of one lakh become two lakhs in the future, then the profit is one lakh. But if he uses leverage, then I will tell you how he will do it. He can trade with one lakh rupees and five lakh rupees. And if he trades with five lakhs, then listen to both my words very carefully. First, five lakhs, because the price of the share has doubled. From five lakhs, it can reach ten lakhs. And the second thing is that if the profit is one lakh rupees and is happening according to five lakhs, then the loss will also be according to five lakhs by investing one lakh. So you might be thinking that I invested one lakh rupees, I traded according to five lakhs, and my profit was 20 thousand, 30 thousand, and many more, or maybe the money has doubled, but if there is a loss.

What is Trading

Ways of Trading.

Most people trade in three ways. Now let’s understand the three ways.

If you want, you can do intraday trading. Intraday trading means buying and selling in one day. If you buy and sell on the same day, then you are doing intraday trading, but what is the benefit of this? The benefit is that you can get five times the leverage, which we just talked about. The second thing you can do is trade in futures. You get leverage in trading futures, but here you have to trade in lots, and there is no same-day scene here. Here, your contract is executed by going to the future. Now, what’s the future? What are my options? Here comes the third thing: options. If you want the most leverage, then you get it in options. Here, you get maximum leverage. When we are talking about maximum leverage, you must have heard that someone makes 5 laks, 10 laks, or 20 laks in one day, or a profit of crores in one day. How does it happen in one day? It happens in one day in options, but the people you have heard say that Diwali came out in one day. The pockets were empty in one day. Lakhs of losses happened in one day, and the lakhs of losses in one day also happened in the future and in options.

One thing you have to keep in mind is that you should always learn to trade. Trading without leaning means that you do not know how to swim and have already jumped. Depending on how much money you are trading, you have jumped straight into the water. If you know how to swim, you will have a lot of fun, and if you do not know how to swim, there are chances of drowning and death. So trading can be learned, and we will guide you continuously so that you do not lose. They trade and speculate in the market as well. They trade and speculate in the market as well. What is the difference? The man who is gambling or speculating feels that it will happen today, and a professional trader knows that if I am doing something, then why am I doing it? There is logic behind it, there is price action behind it, and there is analysis behind it.

What is Trading

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