The share market is often considered as a paradise for money seekers who want to make money fast are not as straight or as crooked as anyone thinks. The fact that it is risky to invest money in the share market is not dubious obviously but forming a perception that only the experts or rich are the ones who flourish in the market is also not the correct thing. Anyone with proper guidance or any pre-knowledge is likely to book profits for him /herself or the organization that they work for. Do they just need to know how to invest in share market? Making money isn’t a child’s play but considering it rocket isn’t also truly fair.
A share market is a place where companies trade their shares in exchange for money from the general public. This means if someone buys shares of a leading smartphone manufacturing company then he is a stakeholder in that company, technically. Most people don’t buy shares from the point of view of owning a stake in the company but for making profits by buying and selling them from time to time. The frequency of buying and selling depends upon the trader according to their period of buying and selling. They are classified into different categories some of which are listed below:
- Intraday traders: These are the ones who buy and sell shares daily sometimes at a profit or a loss. These types of traders usually buy stocks in the opening time and wait for the right time to sell the stocks. Since variation in generic stocks during a day isn’t very much so these traders buy the sumptuous amount of stocks so that a significant amount of profit can be generated.
- Swing trader: These are the type of traders that make use of more predictions as these traders typically hold a stock for at least 1-2 weeks as their target setting is according to that strategy. They usually study the technicalities of the stock and predict the probable revenue or profit that can be generated from stock in the pre-determined period. Swing trading options is one of the several tactics that traders frequently employ.
- Scalp traders: These are more dangerous traders in terms of the time for which they buy the shares. These traders buy and sell shares within minutes usually or in some cases even seconds, since the margin on each share is exceptionally low here so they buy an exceptionally huge amount of shares while trading so that they can generate a considerable amount of profit.
- Normal trader: These are more common people who hold shares of a company for a long time, and they invest a somewhat good amount of capital only once. These types of traders before investing their huge amount of research on the fundamentals of the company and try to estimate the future growth. If they sense potential in the stock, they buy and keep it for a very long time.
Conclusion:
The share market is one of the most lucrative places to make money. People have earned billions from the market. You can too. All you need is a Demat account. You can open a Demat account with the best broker in India: 5paisa.
