Basics of Stock Trading

Stock Trading takes place through 2 stock exchanges BSE and NSE. All Traders are connected with the exchange only through the Broker. Stock Trading is a business if it is done with knowledge and discipline. Knowledge is the ability to identify the risk vs return, Discipline is taking rational decision. A Trade plan is required to chose the right stock and to determine the price, quantity and target to see profits and to also apply stoploss to minimize risk. Positional trading is buying a stock and holding it for more than a day and selling.
Intraday trading is buying and selling the stock in the same market day. Long – When a stock is bought expecting the price to go up
Short – Expecting the price to go down so buying and selling the stock on the same day.
Long unwinding – Selling the stock to exit the long position.
Short covering – Buying back the stock to exit the short position