Day trading and Delivery trading are the two main types of shares trading.

¨ Day trading –
Buying and selling of shares on daily basis is called day trading this is also called as Intra day trading. Whatever you buy today you have to sell it today OR whatever you sell today you have to buy it today and very importantly during market hours that is 9.55 am to 3.30 pm (Indian time).

¨ Delivery Trading

In Delivery Trading, as the name say, you have to take the delivery of shares and after getting these shares in your demat account you can sell them at anytime (or you can hold them till you want, there is no restriction).

In delivery trading you need to have the amount required to buy share for example, if you want to buy 100 shares of Reliance at price 500 than you must have (100*500) Rs. 5000 in your account; once you purchased these shares will get deposited in your demat account (say after basically, trading day and 2 additional days). Then you can sell these shares when the price of these shares goes up or else you can sell whenever you want.

Following are the types of orders which are used for buying and selling of shares.
¨ Market Order -
When you put buy or sell price at market rate then the price get executes at the current rate of market. The market order get immediately executed at the current available price. In market order there is no need to mention the price; the shares will get executed at the best current available price. If you wish to buy or sell shares at any specific price then market order is not suitable for you then you have to go for limit order. Market order is for those who want to buy or sell immediately at the current available price.

¨ Limit Order -
It’s totally different to market order. In limit order the buying or selling price has to be mentioned and when the share price comes to that price then your order will get executed with the mentioned price by you. But here it’s not sure that the price will come to your limit order. In day trading its risk because you have to close all your transactions before 3:30 PM and if in case price doesn’t reach to your limit order then your order will be open and then you have to go through (bare) the heavy penalties. Importantly limit order and stop loss trigger price are used together.

¨ Stop Loss Trigger Price-
Stop loss and trigger price are used to reduce the losses. This is very important term especially if you are doing day trading (intraday).Stop Loss as the name indicates this is used to reduce the loss.

Share Trading -
Buying and Selling of shares is called share trading.
Mainly there are two ways of doing share trading.
¨ Online Share Trading.
¨ Offline Share Trading.
¨ Online Share Trading -
Doing share trading with help of computer, internet connection and with trading/demat account is called Online Share Trading.
If you would like to do online share trading then you should have a computer, internet connection and online trading account.
Details of Online share trading has been given in next chapter.
¨ Offline Share Trading -
Doing share trading with the help of broker or through phone is called Offline trading.
In other words trading will be done by another person on your behalf based on the instructions given by you, and then the other person can be a broker.The broker will do buying and selling of shares on your behalf depending on the instructions given by you.
If you want to do offline share trading then you need to open the demat account. (provide link for procedure to open the demat account)