Wealth Creation In Equity

How to get into trading equities

There are many ways one can get started with equity trading. The various ways in which one can trade equities are detailed below.

1. 1. Day Trading: The short-term strategy involving the analysis of the share’s price movements with the goal of closing one’s position by the end of the trading day. Day trading requires that traders become alert and quick in their transactions since they aim to profit from small price movements in a volatile market. Since there is often a lot more liquidity in volatile markets, traders find themselves entering and exiting the market often.
   2. Options vs Equity trading: Options are derivative contracts that can easily be used to trade stocks and shares at a future point in time, at a prespecified price. The orders placed for options are typically conducted in the same way as those of equities. With buy or sell offers, transactions between both the products work alone similar means. However, all options tend to have a date of expiration, while equities can be held for an indefinitely long time. To add to this, options trading often does not give traders the right to earn from dividends or any ownership over their assets. On the other hand, equity trading offers opportunities for both of these.
   3. Socially trading equities: Another way to get into trading equities is social. This is where beginner traders use information and strategies from other traders that they observe online. This is known as social trading and makes for a particularly effective method for beginners since they mirror professional investors. Since the stock market can be particularly volatile, social trading is a great way to get used to a stock market trading platform and figure out the strategies you can use when you trade on your own.