| BSE | NSE | |
|---|---|---|
| 1 | It is one of the biggest stock exchanges India along with being a harbinger of technological advances by the introduction of fully automated trading systems | The BSE is one of Asia’s oldest stock exchange markets which offers a legacy of high speed trading |
| 2 | As electronic trading was incorporated from the beginning of its establishment, it always has been a fully electronic stock exchange promoting paperless trade | Only in 1995 did BSE switch to electronic trading after following a paper trading pattern since 1875. |
| 3 | In the global stock exchange rankings, NSE stands at the 11th Position | The BSE stands at 10th position in the global stock exchange rankings |
| 4 | The NSE has the lead in this segment as it has monopolized it. | BSE enjoys far lower volumes among investors and traders alike |
| 5 | The NSE has more than 1600 companies listed under it. | The BSE has more than 5000 companies listed under it. |
| 6 | NSE’s Stock Index NIFTY gives top 50 stock index. | BSE’s Stock Index SENSEX gives top 30 stock index. |
| 7 | NSE was recognized as a stock exchange in 1993. | BSE became a recognized stock exchange in 1957. |
| 8 | NSE promotes trading in equity, debts and currency derivatives. | BSE promotes trading in debt instruments, mutual funds and currencies. |
Types of stock trading
1. Day trading
It involves buying and selling stocks in a single day. If the trader buys shares for intraday trading , they should also sell those at the end of the trading session. Day trading is famous for capitalizing on small movements of the stock’s NAV value. Intraday trading is relatively low risk since the trader holds the position for a short time. But the risk can increase if the trade uses too much margin money
2. Scalping
It is also called micro trading because of the time involved in the trade. The trader will make several short duration trades to reap small profits. The number of scalp trading can go from a few dozen to a hundred daily. Similar to day trading, scalp trading requires an understanding of technical analysis, market knowledge, proficiency, and awareness of price trends.
3. Swing trading
Swing traders capitalize on short term market trends and patterns. In swing trading, a trade can last for a few days from one day to seven days. It involves analyzing the short term trends to gauge market patterns to execute the transaction.
4. Momentum trading
In the case of momentum trading, traders capitalize on the stock’s momentum; select scrips that are either breaking out or will break out. Traders will base their trading decisions on the direction of the trend. For example, the trader will sell for a higher profit if the ongoing momentum is upward. Conversely, when the movement is downward, the trading strategy is to buy stocks at a lower price.
5. Delivery trading
It is the most prevalent trading style in the stock market and one of the most secure ways of investing. Delivery trading is a form of long term trading where the investors buy stocks intending to hold onto them for some time. Delivery trading doesn’t allow the usage of margin. This type of trading requires investors to pay the total amount to acquire the stocks. Particular types of stock trading
6. Positional trading
Positional trading is a form of delivery trading called the buy and hold strategy. It requires traders to maintain their position for an extended period and ignore the slightest market movements. Positional trading yields profit when the trade waits for a significant period before selling off.
7. Fundamental trading
Traders use fundamental analysis of the company to find stocks. They pay special attention to events related to the company and its financial details. Fundamental traders hold their positions sufficiently long to allow the stock price to move significantly. The trading style is quite close to stock investment.
8. Technical trading
Unlike fundamental traders, technical trading focuses on price trend analysis. They use charts and data to time the market. The risk involved in technical trading is higher than positional or fundamental trading. Traders should have market knowledge and abilities to study charts and graphs for insights.
Delivery trading
1. Identify any 10 Stocks from Nifty 50 List. Top contributor of their Segments. Analyze these Stocks Behavior of Ups & Down by past 24 Months graph
2. Ex. Investment Fund 1 Lac. Invest 60% of your Investment in 3 Stocks out of 10 Stocks when these stock at Low Level. (keep 20% funds fro Average out if Required
3. 20% Fund always keep in your Hand this is to Buy Some Stock , if any stock out of 10 Stocks List goes Down
4. And If Stock make Reduction in Price more than 15% then you can do Average out, if you think. Otherwise keep Patience. These stock are Nifty 50 Top Contributor of Segment. It will not go anywhere just Matter of the Time to Increase
5. The Moment any Stock make Growth of between 5% to 10%. Sell Immediate. Always Focus to make 5% to 10% Growth. Book your Profit Immediate. 6. By This Process You Can make Min. 20% to 30% Growth every Year. Within 3 years You Investment will become Double.
