What is Stock Trading?

Earlier in India, stock trading will do in every state, it had a separate stock exchange like the Hyderabad stock exchange, etc.

Now, the most 30 popular companies on the Bombay stock exchange come under Sensex. Nifty is a blended word of National Stock Exchange and fifty.50 equity stocks are traded under NSE out of 1600 stocks.

What is stock trading? 

Stock Trading usually means buying and commerce or selling shares to obtain a profit from them in the stock market on a similar day. 

Definition of Stock Trading 

Stock Trading defines a trader involved in buying and selling shares in a specific firm, to get profit from the rise in share price. If a trader owns stock in a company, he has a piece of share in the particular company.

Stock Trader Meaning 

A Stock trader means a person or an investor involved in trading activities that include gain profit on the purchase of shares and sale of the securities. Stock traders have different names like an investor, agents, equity traders, speculators, or stockbrokers. 


  • Stock Trading usually means buying and commerce or selling shares to obtain a profit from them.
  • The 30 popular companies on the Bombay stock exchange come under Sensex.
  • The 50 companies traded on the National Stock Exchange and fifty.under NSE out of 1600 stocks.
  • There are many types of stock trading like intraday trading, short term trading, scalping trading, long term trading, Unlisted Shares etc

Understanding of Stock Trading Markets 

Primary market: 

The primary market is where companies issue new securities and supply them to the public. So, the transaction happens between issuers and consumers. 

Secondary market: 

In the secondary market, you'll be able to purchase and sell shares that are issued within the primary market. The dealing takes place between buying and selling. The securities market or broker acts as a negotiator within the secondary market.

Types of Stock Trading 

There are many types of stock trading like intraday trading, short-term trading, scalping trading, long-term trading, etc, Now, if you buy and sell a share on a similar day, the transaction is named intraday trading. Out of them some most commonly used and important types of trading are 

Day Trading

Day Trading involves buying and selling stocks in a single day. An investor can hold stock for only a few minutes or hours. At the end of the day, the trader should close his transaction before the market closure. 

Scalping Trading

Scalping trading is also known as micro-trading; it involves reaping small profits continuously ranging from dozen to a hundred profits in a single day. 

Swing Trading

Swing trading is used to capitalize on short-term stock, it is used to earn profit from stock within a few days of buying it, maybe within one day to seven days. 

Positional Trading

Positional trading is long-term trading; an investor can hold his stock long run may be months or years. Positional traders can ignore short-term losses and prefer to focus more on precise fundamental analysis of the stock for the long run.

Process of trading for beginners 

The following steps can assist you to begin your journey in available trading: 

1. Open a Demat account: 

To enter the share market as a trader or investor, you want to open a Demat account or account. Without a Demat account, you can't trade the stock exchange. The Demat account works as a sort of bank account wherever you hold cash to use for trading. The securities you buy are kept up electronically within the Demat account. 

2. understand stock quotes: 

The price of a stock moves on the idea of any news, fundamentals, technical analysis, and so on. By gaining data concerning these aspects, you'll be able to enhance your information on stocks and stock markets. This can assist you to work out the correct value to enter or exit a trade. 

3. Bids and Price: 

A bid value indicates the most price you're willing to pay to buy a stock. The raised price is simply the other. It represents the minimum value at which the seller is willing to sell the stock. To make sure a profitable trade, it's vital to determine the right bid and raise the value. 

4. Fundamental and technical data of stock: 

Research the fundamental and technical analyses of the stock to set up you're trading. the basic analysis estimates security by counting its intrinsic price. It considers numerous dynamics together with earnings, expenses, assets, and liabilities. In the meantime, the technical analysis assesses the stock supported by the previous value and volume chart of the stock to predict the future.  

5. Learn to prevent the loss: 

Volatility is an implicit characteristic of the share market. So, a beginner needs to know the means of preventing significant loss. Whereas executing a trade, you would like to set a stop loss value to reduce the loss. Failure to place a stop loss could harm your capital heavily. 

6. Consultant expert: 

The share market is unpredictable. No one will predict a stock value accurately. however, taking recommendations from a skilled helps beginners build the proper trading decision. It guides you to create the correct selection. 

7. Begin with safer stocks: 

A big financial loss, in the starting, could bring your confidence down. A wise selection is, to begin with, the less volatile stocks. That will provide you with a slow beginning. however, those stocks are a lot of probably to sustain an honest performance even in adverse conditions. 


The latest trend in trading on stocks become as easy as shopping online. A speculator can do the trading anywhere in the world only using a smartphone.  It requires a good internet connection, a subscription to a 3-in-1 account, a mobile banking application, and sufficient funds in the bank account. 

Providentially, all the restless paperwork has come down to a single click on the mobile phone. Several trading portals and web applications are available on the internet on mobile phones some are paid and free.

At the end of the day, the trader looks for either a profit or loss. 

This is a simple explanation of Stock Trading which is one type of trading.