Different Types of Trading in the Stock Market

14.May.2025
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If you’ve ever dipped your toes into the stock market, you know it’s not a one-size-fits-all space. Some people are glued to charts all day. Others forget they even own stocks until a dividend alert pops up.

That’s because there isn’t just one way to trade or invest. There are many.

And figuring out what suits you best starts with understanding the different types of trading in stock market.

The Big Picture: Why Trading Types Matter?

Let’s say two people are buying the same stock. One sells it within hours. The other holds on for years. Are they doing the same thing? Not even close.

One’s probably an intraday trader trying to catch small moves. The other? Maybe a long-term investor or a swing trader. Different goals. Different mindsets. Different risk levels.

Understanding these trading types in share market:

Choose the approach that fits your time, risk, and temperament

Avoid the trap of copying someone with a completely different game plan

Build strategies that actually make sense for you

Let’s explore what’s out there.

1. Intraday Trading – The High-Speed Chase

Intraday trading, also called day trading, is like sprinting in the world of stock trading. You buy and sell stocks within the same day. No positions are carried overnight.

What it looks like:

Constantly watching price charts

Quick decision-making

Targeting small price movements for multiple trades a day

Who it’s for:
People who love action. Fast thinkers. Those with the time and focus to track markets during trading hours.

Example:
Buying shares of a top gold company in the morning based on a chart breakout and selling it before lunch for a ₹5 profit per share.

Reality check:
It can be profitable, but it’s also intense. Risk is high. So is emotional pressure.

2. Swing Trading – The Middle Ground

Swing trading sits between intraday and long-term investing. Instead of selling within hours, you hold trades for a few days or even weeks. The idea is to catch a “swing” in price based on technical trends or news triggers.

What it looks like:

Holding stocks for short-to-medium timeframes

Using technical analysis (like moving averages or patterns)

Less stressful than intraday, more dynamic than investing

Who it’s for:
People who can’t monitor markets all day but want to be more hands-on than just buying and holding.

Example:
Buying producing gold stocks after a price correction, expecting them to recover within 10 days.

3. Positional Trading – The Strategic Wait

This is long-term investing with a tactical twist. Positional traders might hold stocks for months, riding out ups and downs with faith in the bigger picture.

What it looks like:

Ignoring short-term volatility

Relying on strong fundamentals

Timing entries based on economic cycles or sector trends

Who it’s for:
Those who have full-time jobs or don’t want to obsess over daily market movements.

Example:
Buying stocks in India related to infrastructure before the government announces a big project.

Why it works:
Patience often pays off. Markets reward those who can zoom out.

4. Scalping – Micro Profits, Macro Volume

Scalping is the most intense form of trading. Think of it as intraday trading but turbocharged. Scalpers look for tiny price changes and make dozens (or even hundreds) of trades in a day.

What it looks like:

Lightning-fast trades (sometimes seconds long)

Tiny gains per trade but many trades

Relies on advanced platforms and quick reflexes

Who it’s for:
Experienced traders with nerves of steel, deep pockets, and great infrastructure.

Example:
Buying and selling the same gold miner stock five times in an hour for ₹0.50 profit per trade.

Warning:
For most people, this is too fast, too risky, and too technical.

5. Options Trading – Playing the Probabilities

Options trading is a whole world on its own. You’re not buying stocks directly; you’re buying contracts about those stocks. These contracts let you bet on price movements without owning the underlying asset.

What it looks like:

Buying or selling calls and puts

Predicting where prices will go (and when)

Complex, but flexible

Who it’s for:
Traders who love strategy, hedging, and leverage. Not ideal for complete beginners.

Example:
Using options to hedge your portfolio against a possible drop in gold production stocks during earnings season.

Cool part:
You can profit even when stocks don’t move if you play the time decay game right.

6. Delivery Trading – The Classic Long Haul

This is the old-school style. You buy shares, they get delivered to your demat account, and you hold them until you feel like selling days, months, or years later.

What it looks like:

No rush to sell

Focus on company fundamentals

Used by investors more than traders

Who it’s for:
Almost everyone, especially new investors. It’s slow, steady, and doesn’t need constant attention.

Example:
Buying long-term gold ETFs or streams and royalty companies to hedge against inflation.

Why it’s safe:
You actually own the stock. No leverage. No overnight risk.

Final Thoughts: Pick Your Path, Not Someone Else’s

So, what did we learn?

There are many different types of trading in stock market, and none of them is “better” than the other. It all depends on your personality, your schedule, your risk appetite and honestly, your patience.

Whether you’re diving deep into different types of stock trading or just testing the waters, always start small. Understand the game before going all in.

Trading isn’t about finding the fastest way to grow your money. It’s about finding the right way for you.

Ready to start trading or take your strategy to the next level? Open a Demat Account with Torus Digital and trade across all segments using high-speed APIs and cutting-edge tools for a seamless, pro-level experience.

FAQs

Which style of trading works best in the stock market?

There’s no universal winner, it depends on your time, risk appetite, and mindset. Intraday suits fast thinkers, while delivery trading works for long-term investors.

What’s the right way to start investing in stocks?

Start by opening a demat and trading account with a trusted broker like Torus Digital, research companies, and invest in fundamentally strong stocks. Begin small and learn as you go.