TRADING

Revolution in technology, trade in services has now gained a lot of importance in the trade literature. Relationship between trade in services and income inequality in developing economies, with an emphasis on India which is by and large a service-driven economy. It provides some insights on the question - why it is important to examine the impact of trade in services on income inequality separately from that of trade in goods in developing countries. 

1.Tax benefit

2.Profit potential

3.Value of the investment

4.Ease of trading

5.Can monitor your investment

1. Only a little capital investment is required by the trader as payments can be made in small margins.
2. The investor can leverage capital to earn maximum profits.
3. It eliminates the overnight risks of the stocks.

1. DAY TRADING- This type of trading is also called intraday trading. All trades are conducted within one trading session. Positions are held no longer than the duration of one trading session. An intraday trader goes home without having open positions. 

2. MIDDLE TERM TRADING- This method is for the traders who catch long fluctuations. Middle-term traders hold their positions for many weeks and months.

3. LONG TERM INVESTING- This type of trading, which is called ‘buy and hold’, best fits the stock market.

• Trading Strategy- Intraday trading is a strategy where you buy and sell your stock holding on the same trading day. Traders thus take advantage of the price fluctuations that take place during market hours. In case the trader expects the price to rise during the day, he or she would first buy a lot of securities and then sell some time during the day. 

• High risks-  Intraday traders are usually speculators, who are willing to take high risks. 

•  How to day-trade-  First of all, the idea is to select stocks that have a high volume of trade. This means they are highly liquid. This could include penny stocks – shares of small-scale companies with prices as low as Rs 20. Select a maximum of two or three stocks at a time. It would become difficult to monitor more shares. Ensure you have a stop-loss order to act as a safety net. This will help reduce your risks. Once you have placed your order, monitor closely and exit when the price has hit your target or stop-loss levels.