Trading refers to buy and sell of financial instruments by the buyers and sellers. The traders purchase and sell the financial entities on behalf of its customers. Trading brings the purchasers and sellers on the same platform regarding economic activity.
Why trading account is necessary:
Traders can use the trading account for purchasing and selling the securities, shares, stocks. Anyone is eligible for investment in the stock market. The individuals who are below 18 years old can open the account by the guardians after submitting all desired documents.
Types of traders:
There are various kinds of traders in the stock market. They are intraday traders, swing traders, position traders, momentum traders, scalpers etc.
Intraday trader or day trader trades throughout the day. They trade several times in a day.
Momentum trader’s trade depends mainly on movement of the trade market irrespective of the upward and downward movement. This kind of trade lasts for several hours to several days.
Scalping is the fastest way of adopting trading methodology. Scalpers find the less volatile market. They hold the assets for a short period, for this their profit is also low. They prefer liquidity in the market. The gap between ask price and bid price can be received by them.
Swing traders hold the assets for a short duration. This can last for a week. They mainly depend upon technological knowledge and if it does not work then market analysis is the option for them.
Position trading is the option for the traders who are not frequent in the market.
Difference between trading and investing:
If someone wants to take more risk, trading is the best option for him. On the other hand if someone wants less risk and risk return then investing is the best option for him.
Story about insider trading:
The investors who are efficient in insider trading knowledge will be in a better position compared to the others. For this he will earn more profit which is illegal. Forex trading is also illegal in India. Because Indian currency is not involved in the FOREX market.
How to open a trading account:
At first traders need to select the stock broker of the firm. Then he should compare brokerage rates. Some discount is being offered based on conduction of trade amount. Then investors need to keep in touch with brokerage firms and he may ask many things regarding opening an account. Then investors need to fill the form. Sometimes investors get the opportunity of opening a trade account without giving a single penny. The initial deposit needs to be paid when purchasing investments.
Is trading a good career:
Trading is a good career if someone likes to take the risk, and has enough knowledge regarding the market. Before investing, you can check more information from https://www.webull.com/hc.