The process of buying and selling of goods is known as trading. But in trading, only products and services don’t flow rather there is a flow of shares, securities, and assets. When a person buys a thing when its price is low and sells it when it’s price increases, it is known as trading. Trading is an important part of stock markets like NYSE: ASC at https://www.webull.com/quote/nyse-asc. In this particular share market, there is buying of shares in Ardmore Shipping Corp. When a person buys shares in a company and sells it when it’s price increases, it is known as trading in the stock market. People can trade in any manner they want, they can trade for some days or some years. There are various kinds of trading.
What are the different types of trading?
There are 4 types of trading which are divided based on the time for which the shares are kept with the trader-
- Intraday trading- In this type of trading, the traders buy shares and sell it within one day when its price increases.
- Swing trading- In this type of trading, the traders keep the shares for 10 days and then sell when it’s price increases.
- Positional trading- In this type of trading, the trader keeps the shares for 100 days and then sell when it’s price increases.
- Investment- This is the widely used trading method in which the shares are traded for years like 3-5 years.
Is there any difference between trading and Investment?
The process of buying and selling of shares is common in both trading and investment. But there is some difference between trading and Investment that includes-
- In trading, you can hold the shares for one day, one week, some months, or years but in Investment, you can keep the share for some years and it is a long term trading.
- When trading, you can buy and sell trades of small businesses and big companies because it is short-term. But in Investment, you have to wait for some years as the company in which you have invested needs years to develop and get profits.
- In trading, the risk is low because you trade for a short time but in Investment, the risk is high as the money is traded for a longer time.
- In trading, you trade with companies that are not so well established but in Investment, you search for successful companies to invest as it is a long term trading process.
In trading you do technical analysis which means you focus on the price of shares but in Investment, you focus on the best companies as you are keeping the share for many years which is known as fundamental analysis. You can check free stock quotes at online trading platforms.
Disclaimer: The analysis information is for reference only and does not constitute an investment recommendation.