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Are you a beginner in the stock market? Worried about what type of trading is best for you? Not to worry I am here to clarify the concepts of each type of trading with its pros and cons that will help you to select the best options as per your suitability and comfort. You are also gets updates of the stock market by self learnig or get tips from here Stock Tips For Tomorrow. But the very first thing you have to ask it to yourself is that Why you want to make an investment in the stock market? Is the profit only thing that attracts you? It is not necessary that you always make a profit may be some time you face loss too Cheap Clyde Drexler Shirt , so be ready for both the situations. Keep in mind that the stock market requires your time so do you have time to make researches? Do you have your own money to invest in or you borrow it from somewhere else? My first advice to you is that don't ever use someone else money to make an investment in the stock market. If you have your own money that remains after fulfilling your and your family members desire then only you have to invest it in the stock market. Now if you have clear thoughts regarding the above questions then let's begin with the simple explanation of each type of the trade.

Intraday trading:


Intraday trading is the procedure of buying and selling i.e. trading within a day. There is no transfer of the owners to take place. In intraday trading, one can hold a stock for a few seconds to a few hours but it is necessary to sell the stock at or before the market gets closed. If you do not do so then it will automatically sell when the market gets closed. Intraday trading is also called as day trading so don't confuse with these terms both are the same.


Short term trading:


As its name define short term trading is the procedure of buying and selling for a short time for a few days or for 2-3 weeks. Short term trader performs technical analysis for entering into the market and also for the exit. They do not focus on the fundamentals of the company. In simple trader who holds their stocks for a few days or for a few weeks are comes under short term trading.


Long term trading:


When traders hold their stocks for a long period of time i.e. for months and years (minimum for six months) are called long term traders. They generally ignored short term price fluctuations of the market and only focus on the long term profits.


Hope you understand the above definitions Cheap Charles Barkley Shirt , but the definitions are not enough for you to take a decision that which one is the best option for you, right? Okay Cheap Steve Francis Shirt , so I am going to simplify these terms for you by using its pros and cons.


Intraday trading requires less amount to invest in and provides you a higher rate of returns in comparison to others. But it is the fact that the higher returns have a higher risk, you can say that it is the disadvantage of intraday trading. You can earn more profits from this trading when the market is more volatile. The pros of short term trading are that if you take a wrong decision then your capital is free and now you can re-invest it. But you are in stress till you do not exit from the market because it requires more attention and the reality is that the stock market is unpredictable Cheap Tracy McGrady Shirt , so you don't have a complete idea of the future performance of that particular company. In terms of the long term, it is a time-consuming process you do not have to give your whole day in market researches. Less stressful as well as saves taxes as compared to short term trading. But it requires depth knowledge Cheap Ryan Anderson Shirt , more patience, and researches and additionally Cheap Eric Gordon Shirt , you also miss the volatility of the market.



Maybe the above para makes you more confused in the selection. But the point you have to
remember is that everything has its pros as well as its cons. When we talk about the above essence each trading is good in its way you just require proper knowledge to get success. In my opinion, if you are a beginner I suggest you go for the short term trading it is because you are new in the market so need time to understand the market. Short term provides you time to analyze the market as well as it is less risky as compared to the intraday trading. I am saying this because short term trading is best to understand the market. Once you understand the working you can also go for the intraday or the long term trading and get Intraday Tips. But it doesn't mean that you stop your learning and researching.


Note: The above content is my point of view on the market. Use your own sense to select the best trading options for investments. I am just helping you to understand these trading patterns. So make a selection based on the personality you have.


About the Author :


Hello everyone Cheap Chris Paul Shirt , I am a financial analyst in Epic Research. I like to learn and write about the stock market. I tried my best to provide you the better content to read and understand. If you find it interesting then keep supporting.

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