Everyone of us at some moment in our life has thought about investing in stock market. But we often stop ourselves because of our lack of knowledge about how the market works. We are scared to take the risk of losing the money by investing in wrong stocks. If you want to invest and want to learn about the market then you need to know some basic things. One of those things is to learn about the long-term and intraday trading.
Trading is basically buying and selling the stocks of company. Of course you want to buy low and sell high. But as a beginner its difficult to know that for how long you should hold your stock before you sell. Market fluctuates daily, so the value of your stocks also changes everyday. One day are at a profit and you decide to hold that stock for longer time. And the next day the value of your stock decreases and now you are at loss. Then you wonder that you should have sold that stock when its value was high.
Also learn how you can make money from writing a blog
Top 3 ways to make money from blog
Long-term trading
When you sell the stock of a company after holding it more than a day its known as long-term trading. You buy the stock and you keep it for more than a day, week, month or years. Long-term trading is basically the investing your money in stock market. You buy the shares and wait for it to grow for months or years before you sell.
I advice you to regularly check the performance of stocks of the company that you bought. Even if you are looking for long-term investment, its important to know value of your stocks. With long-term investment you can earn a lots of money if you invest in right companies.
Intraday trading
Intraday trading is when you buy and sell your stocks on the same day. This means that you sell your shares with in 24 hours of buying them. With intraday trading you may earn 10, 100 or 1000 rupees a day depending on your share value. Intraday trading is what we all can say is the easy way to earn money but it can be very risky.
You should only decide to do intraday trading if your are 100% sure about your share’s growth. In intraday never put a lot of money unless you are expert at it. To do intraday trading you have to be well aware about the market. You need to have the knowledge of the stocks that you are going to buy and sell. You need to be aware about any incident that can affect your stock’s value positively or negatively. Once you know all these things only then you should go for Intraday trading in my opinion.
What should you choose Long-term or Intraday
If you are a beginner in stock market trading I would say that you should go for long-term trading. You can try intraday trading for an experience but with the money that you are okay to loose. Even with the long-term investment start with less money and don’t put all your money in one company’s shares.
There is a popular saying ‘Don’t put all your eggs in one basket’ which is very true for stock market. You should invest your money in shares of different company. By doing that you lower the risk of losing your money. If you put all your money in one company and its stocks crashes then you will lose all your money.
I would suggest you to go for long-term trading if you are just beginning. Once you get a hold of how the market works, you can do the intraday trading. Even with the long=term trading always be aware about the market and the events that affects it. With stock market never invest all at once, at first invest in fewer companies. Then slowly either invest in more companies or put more money in the companies you already invested in.
Even if you don’t have much money to invest, you can start with a small amount. You can invest small amount each month and with time you will be able build a nice portfolio for yourself. I advice you to start investing in stock market because it will be beneficial for you in long term. This is one of the way to generate passive income for yourself. But remember to do proper research before investing in share’s of any company.
I have talked about different ways with which you can earn money online in this blog. Do read them and also if you find it helpful then share them with more people. Greatly appreciate your support.
Read also: 5 Best ways to earn money passively