Stock Market Learning Index
Complete guide to master stock market trading
Foundation Concepts
Stock Market Basics
What is stock market and how it works?
Market Terms
All important market terminology
Trade Types
Different types of trades
Trading Styles
Various approaches to trading
Candlestick Patterns
Bullish, Bearish & Continuation patterns
Chart Patterns
Technical chart analysis
Support & Resistance
Key price levels identification
Market Analysis
Technical, Fundamental & Price Action
Advanced Trading
Different Styles of Trading
Understanding various trading styles helps you choose the approach that best fits your risk tolerance, time availability, and financial goals.
1. Scalping
This is the style of trading in which you buy and sell stock derivatives in the time frame of minutes and view charts in 1 min, 5 min, and 15 min timeframes mostly.
Chart Timeframes
Advantages
- Quick profits possible
- Multiple opportunities per day
- Limited overnight risk
- High liquidity requirements met easily
Challenges
- High stress and time intensive
- Requires constant monitoring
- High transaction costs
- Requires advanced skills
2. Intraday Trading
In this you buy and sell the stocks in that day only between 9:15 am to 3:30 pm. This also offers leverage of 5 times (e.g., if you have only ₹1000 but on intraday trading you can buy shares worth ₹5000, but the profit and loss both will be in terms of ₹5000 and if the loss exceeds the invested amount then the trade will get cut automatically).
Chart Timeframes
Up to 5x leverage available
Advantages
- No overnight risk
- Leverage available
- Quick returns possible
- Lower margin requirements
Challenges
- Time-bound pressure
- Requires market knowledge
- Emotional stress
- Auto square-off risk
3. BTST (Buy Today Sell Tomorrow)
In this you buy stocks between 2:30 to 3:30 and sell that next day or at most the day after tomorrow.
Chart Timeframes
Advantages
- Capture gap openings
- Less time intensive than intraday
- Good for momentum plays
- Flexible exit timing
Challenges
- Overnight risk exposure
- Limited time window for entry
- Market gap risk
- Delivery margin required
4. Swing Trading
In this you buy and hold stocks for between 1 day to 1 week and then sell them.
Chart Timeframes
Advantages
- Less time intensive
- Captures larger price movements
- Good risk-reward ratio
- Suitable for working professionals
Challenges
- Overnight and weekend risk
- Requires patience
- Market volatility exposure
- Longer capital commitment
5. Positional Trading
In this you buy and hold stocks for a while, from a day to a month.
Chart Timeframes
Advantages
- Less frequent monitoring
- Captures major trends
- Lower transaction costs
- Good for trend followers
Challenges
- Higher capital requirements
- Longer exposure to market risk
- Requires fundamental analysis
- Opportunity cost of capital
Trading Styles Comparison
| Style | Time Frame | Risk Level | Capital Req. | Best For |
|---|---|---|---|---|
| Scalping | Minutes | High | Medium to High | Expert traders, full-time focus |
| Intraday Trading | Same Day | High | Low to Medium (due to leverage) | Active traders, daily monitoring |
| BTST (Buy Today Sell Tomorrow) | 1-2 Days | Medium | Medium | Momentum traders, short-term plays |
| Swing Trading | 1 Day - 1 Week | Medium | Medium to High | Part-time traders, working professionals |
| Positional Trading | 1 Day - 1 Month | Medium | High | Long-term trend followers |
Key Considerations for Each Trading Style
Risk Management
Different styles require different risk management approaches. Shorter timeframes typically need tighter stop-losses and position sizing.
Time Commitment
Scalping requires constant monitoring, while swing and positional trading allow for part-time involvement with periodic checks.
Market Analysis
Technical analysis is crucial for short-term styles, while fundamental analysis becomes more important for longer-term positions.
Capital Requirements
Each style has different capital requirements. Intraday trading offers leverage, while positional trading requires full capital commitment.
Psychological Factors
Consider your stress tolerance, patience level, and ability to make quick decisions under pressure when choosing a style.
Market Conditions
Some styles work better in trending markets, while others are suitable for range-bound or volatile market conditions.
Getting Started Tips
- • Start with paper trading to practice without risk
- • Begin with longer timeframes and gradually move to shorter ones
- • Develop a trading plan and stick to it consistently
- • Keep detailed records of all your trades for analysis
- • Never risk more than you can afford to lose
- • Continuously educate yourself about market dynamics
- • Consider starting with mutual funds or ETFs for beginners
- • Seek mentorship or join trading communities for guidance