Basics of Stock Trading

1) The stock price is decided by the buyers and the sellers. The buyer who quotes the highest price will be placed in the first position in the que and will be regarded as the best buyer. On the contrary, the seller who quotes the lowest price will be placed in the first position and will be regarded as the best seller.
2) Buying and selling of stocks within a day before the market closes is known as Intraday trading. Whereas, Positional trading is when the trader holds the stock for a long period of time, say 4 months and then sells his stock later.
3) Long position : When a person expects the market price to go up, he buys the stock first and then sells it later when the price goes up. This position is known as the long position.
Long unwinding position : Closing the long position is known as long unwinding position. That is, selling the stock.
Short position : When a person expects the market price to go down, he sells the stock first and buys it later when the price goes down.
Short covering position : Closing the short position is known as short covering. That is, buying the stock.