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Stock Market Trading
History of Trading
Trade has existed for as long as human civilization, i.e., the agricultural revolution. The form of trading, however, has varied across different societies. Primarily due to isolated human communities, which did not allow the unification into a single system. In the past, however, a form of trading that was prevalent across different societies was the barter system, where services and goods were traded in exchange for other services and goods.
However, the barter system was found inconvenient given the lack of any basic standard for measuring the value of products. This inconvenience forged the way for money, which acted as a standard against which the values of all products are measured. This invention triggered a chain of economic and financial developments such as the introduction of the credit facility, share trading, etc.
After the success of joint-stock companies in fostering economic development along with geographical expansion, those were made a mainstay of the financial world. The first exchange for online trading in India and Asia was the Bombay Stock Exchange which was established in 1875. BSE, along with the National Stock Exchange in India, are the two main houses where stock market trading takes place.
Types of Trading in Stock Market
Primarily, there are four types of share trading. These are –
Day Trading
This form of trade involves purchasing and selling stocks in a single day. A single day in stock market terms means 9:15 am to 3:30 pm on a weekday (barring market holidays). In the case of day trading, individuals hold stocks for a few minutes or hours.
Scalping
It is also known as micro-trading. Scalping and day-trading are both subsets of intraday trading. Scalping involves reaping small profits repeatedly ranging from a dozen to a hundred profits in a single market day.
Swing Trading
This style of stock market trading is used to capitalise on the short-term stock trends and patterns. Swing trading is used to earn gains from stock within a few days of purchasing it; ideally one to seven days.
Momentum Trading
In case of momentum trading, a trader exploits a stock’s momentum, i.e. a substantial value movement of stock, either upwards or downwards. A trader tries to capitalise on such momentum by identifying the stocks that are either breaking out or will break out.
Open Demat and Trading Account with CMCL - OPEN DEMAT AND TRADING ACCOUNT
Why Open Demat and Trading Account with us ?
A Demat account helps investors hold shares and securities in an electronic format. It is also commonly known as a Dematerialised account. This account helps keep track of an investor's holdings in shares, exchange-traded funds, bonds, and mutual funds in one place.You can open a Demat account without a trading account. Sometimes an investor just wants to hold the shares over the long term without selling them in the near term. Such investors can store the shares in their Demat account.Safe and Secure: It provides a secure environment for storing your securities, reducing the risk of loss, theft, or damage associated with physical certificates. Convenience: Demat accounts offer easy access to your investments, allowing you to buy, sell, or transfer securities with just a few clicks.
An trading and demat account is most required for purchasing and selling and holding shares. However the trading and demat account could become dormant if there are sustained periods of inactivity. And no trade can be made through an dormant trading account until the reactivation process is completed.
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