Trading & Investing

Thinking about safeguarding your financial future, multiplying your wealth, or simply diving deeper into the nuances of markets ? Learning about Financing and Investing is the only way this can be done.

This blog post aims at providing the readers with the basics of Trading and Investing.

BLOG CONTENTS:

• Different Types of Assets

• Short-Term Trading

• Day Trading

Right off the bat, let us learn more about what assets are and what are the different types of assets.

Anything that holds the potential to make money, be it in the short term or long term, can be

termed as an asset. These assets can be of different types.

Tangible-Intangible & Current-Non Current Assets.

Anything that holds value for a person/company in the long term can be put under the category of tangible-intangible assets.

Assets like buildings, equipments, furniture, land, vehicles, etc are Tangible, whereas Inangible assets include patents, copyrights, trademarks, goodwill, etc.

Current and Non Current Assets

Current Assets are those assets which are expected to be consumed within one year. E,g.-

Inventory, Cash, etc.

Non-Current Assets on the other hand are a person's long-term assets (Intangible, Tangible assets).

Moving on to Short Term Trading,

Short-Term Trading involves holding of assets (such as stocks)

only for a brief period of time. Traders make their profits off

the price fluctuations that occur over a short time span. Day-

Trading or Swing Trading can be considered as Short-term trades.

Pros - The pros of this form of trading include Less Stock

Analysis, Quick Profits, provides with the ability to capitalise on small stock fluctuations

Cons - This type of trading is riskier than long term trading,

requires quick decision making, profits made may be subject to taxations.

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DAY TRADING

Day trading is an investment strategy where individuals where individuals

buy and sell financial instruments, such as stocks,

currencies, or commodities, within the same trading

day, aiming to profit from short-term price

movements. Trading hours in India are from 9:00

AM to 3:30 PM (Monday to Friday with Saturday

being an optional session). Technical analysis, chart patterns, and market

indicators, to identify potential entry and exit points

are some techniques used by day traders.

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Wrapping up, it becomes evident that the world of finance is both diverse and dynamic. Knowledge and adaptability are one's most valued assets in this dynamic world. Financial planning, making informed investment decisions, whether in tangible or intangible assets, and understanding more about various investment strategies and which one suits you the best are the various ways once can thrive financially.