There has been a constant rise in the number of people trading in the stock market. As per the data available from the Securities and Exchange Board of India (SEBI), over 10 million Demat accounts were opened between April 2020 to January 2021. The primary reason for this surge is the easy access to share trading using online trading platforms. There are several platforms that are available to do share trading online and users are requested to understand the trading platform completely and based on their needs and choose from the best share trading platforms in India like the Dhanush app by the Ashika group.
What is Share Trading?
Trading is buying and selling of goods where the buyer pays money to the seller in exchange for the goods. Similarly, share trading is buying and selling of shares. The primary aim behind share trading is to make a profit by buying and selling stocks of the companies listed on the stock exchange. Trading can be done to buy/sell mutual funds, stocks, securities, bonds, etc.
Types of Share Trading
There are several ways in which share trading is done by the traders. Here are some of the primarily used trading methods in the stock market.
- Intraday trading
As the name suggests, intraday trading refers to the buying and selling of shares within the same day to make profits. This type of share trading is usually done by experienced traders. In intraday trading, active traders make quick money by buying and selling stocks. Traders usually hold these shares for a limited time and based on their reading of the change in the stock price, they buy or sell the stocks within a few minutes or hours. Trading deals done under intraday trading are closed within the same day.
- Position trading
In contrast to intraday trading, position trading which is also known as delivery trading is the one where the trader holds the stocks for a long period. This type of trading is preferred by traders who are new to share trading. The position trading method requires research before buying/selling the stocks. In this type of trading, a trader tends to hold stocks that are expected to have upward price movement in the coming weeks or months and sell them at their peak.
- Short sell
Short selling requires market experience, awareness of up/down movements of stock prices, and swift transactions. It is primarily used by experienced traders for share trading and is a widely used share trading method by active traders. The idea behind short selling is to make multiple small gains in a single day. Traders tend to sell the stock without holding it in anticipation of a fall in price and buy it back when the price is at its lowest on the day.
Different Platforms for Share Trading in India
One of the key reasons for the rise in the number of people looking to do share trading in the stock market is the ease of access. The online trading platforms have made share trading much easier and simpler as compared to the offline trading times when one had to rely on a broker to do trading for them. Some of the online trading platforms available in the market are listed below
- PC/Laptop – All you need to use a desktop-based platform is to install share trading software on your PC/laptop and an internet connection to do the trading online. A share trading software comes with a lot of useful features that help in making an informed decision.
- Web – With this platform, a trader can do share trading by using the web portal of a stockbroker. The advantage of a web- based trading platform over a desktop-based platform is that the trader is not limited to a particular system for share trading. All you need is a system connected to the internet and account login details provided by the stockbroker. There is no need to download software because all the information for trading in mutual funds, bonds, stocks, securities, etc. is available on the stockbroker’s website.
- Mobile – Mobile app based platform for online trading is increasingly becoming the best share trading platform in India. Several stockbroking firms have their mobile apps available for Android and iOS devices such as the Dhanush app by the Ashika group. The ease of access and constant alerts make it easier to do share trading no matter which part of the world you are in. The main highlight of a mobile app based platform is that it allows instant execution of orders.
For a beginner looking to trade in the stock market, it is imperative to understand the basics of trading before you take the plunge in the trading waters. But If you are one of those who have stayed away from share trading because of the complexities associated with it. It’s time to reconsider because the advent of the internet and online trading has made share trading easy and hassle-free. You can start your trading journey with the easy-to-use Dhanush app by the Ashika group.