Trading Tip
** Stock trading ** refers to the buying and selling of shares of publicly traded companies on stock exchanges. Traders aim to profit from fluctuations in stock prices, buying when they believe prices will rise and selling when they predict a drop. Stock trading can be done in two primary ways: 1. ** Day Trading **: Buying and selling stocks within the same trading day to capitalize on short-term price movements. 2. ** Long-term Trading **: Holding stocks for longer periods, from months to years, based on a company's growth prospects and financial health. Long term trading is often called as investing when the investment horizon is more than 1 year. Scenario 1: Normally We begin with a set amount and adjust our investment based on the profits or losses generated from our trading activities. e.g. if one starts with Rs. 50000/- Trade 1: Invest 50,000 + 10% profit = 50,000 ...