Get free stock market tips, daily stock market tips, share market tips, stock investing tips, daily share market tips, MF investing tips, Mutual FUnds tips, Stock market basics, stock market tutorials, Indian share market tips, BSE closing, SENSEX closing, NIFTY closing, BSE daily rates

Custom Search

Wednesday, September 28, 2011

Types of investors in Stock trading

In my quest to make Livebombaystockexchange as one stop blog for stock tips, Indian Stock markets daily updates, here I post various types of stock trading or type of people under different categories. Many people are full time investors ie their occupation is stock market investing, whereas majority are not full time investors and put their money for just short durations in stock markets.

Different types of Categories of people associated with stock markets and share investing:

Investors: People falling in investors category are those who like to keep their money for more then a quarter atleast before selling in order to make profit or keep it even for a longer time. One very famous example for this category is legendary investor Warren Buffett of USA, you can read my take from book "Warrenn Buffett way of investing" in this post. Investors working for investment is basically a three step functioning mechanism.

1. Choose the Company to invest( shortlisting a particular company is not an easy task, it needs domain knowledge, analysing atleast last 3 years of balance sheets, image of directors of company and much more)
2. Choose the amount of money to invest and probable duration of investment into shortlisted company.
3. Invest

Short term traders: This category of people doesnot fall in investors category and thus falling in traders category. Short term traders usually invest for 2-3 weeks at max and often invest befor quarterly result of company is due and profits are sure. They generally make around 20-30 perc if their stars are bright and if they have used atleast some analysis.

Day traders: These people follow principle of "Raat Gai Baat Gai" and generally start their trading as stock markets open and end with the closing of markets thus making max about 4-5 percent returns in a trading day. You can also read my posts on day trading tips below:
Intraday trading tips
Top 3 trading tips

So while concluding I can say that Indian stock markets see stock purchasing/selling done by above mentioned type of traders/investors

No comments:

Post a Comment


Disclaimer:Stock Market trading involves risk and this website does not warrant or make any representations regarding the use or the results of the materials posted on this website or other sources in terms of their correctness, accuracy, reliability, profit, or otherwise. does not guarantee the accuracy or completeness of any information and is not responsible for any omissions. We clearly state that we have no financial liability whatsoever to any user on account of the use of information provided on the website.
All content within the website is property of and may not be reproduced or duplicated for any reason without the permission of

© Copyrights reserved | for Advertising on this website mail at : for terms and conditions