Types of Trading

As a trader when we enter into the stock market we are very confused about the  type of investment ,means whether we want to invest in long term or want to do the intraday trading. And at  that time we are also think about the choice of the stock.

If want to invest our money to buy the stock at lower price and sell it at higher price in future then it is called the long term investment and for this  we have to analyse the past one year performance of that stock.We can get the past data from the NSE Site.It means we  have to see the highest and the lowest price of the past one year . From this we can predict our stock’s future performance.

When  we think about the intraday trading then we have to analyse the intraday fluctuation of that paticular stock. As we know intraday trading is very risky but it can give you the higher return, if we shall take care of the stock’s past 10-15 days intraday performance.You can get the past performance from NSE Site. Intraday trading is affected by the news of that particular day also.

We can take the example of 18 Th June when the Indian stock market goes down on the response of the two news

1. Fitch lowered the India’s credit rating outlook to negative.

2. RBI keeps key rates unchanged.

So, If you want to inter into the stock market then don’t enter as a naive or stranger.