S3 E1 : WHAT IS TRADING ? TYPES : INTRADAY, SWING, POSITIONAL

Types: Intraday, Swing, Positional

A simple, real-life explanation — without any jargon.

🎮 First, What is Trading?

Trading means buying and selling shares to make money from the price movement.

You're not waiting for years like investors.

You're watching the stock every day or week and saying:
“Can I buy now and sell when the price goes up — soon?”

🏃 Trading is Like Short-Term Cricket Matches

🏏 Trading is Like T20 Cricket Matches

  1. Investor = Plays a Test Match

    → Waits for years

    → Focused on company growth

  2. Trader = Plays a T20 or One-Day Match

    → Takes action in hours, days, or weeks

    → Focused on price movement

📊 You Make Profit When…

You buy low and sell high.

Or sometimes (advanced) — sell high and buy low.

Example:

- You buy a Tata Motors share at ₹500

- Later it goes to ₹530

- You sell and make ₹30 profit per share
That’s a trade.

📦 There are 3 Types of Trading

Let’s break them down like 3 styles of travelers:

1️⃣ Intraday Trading – "The Daily Traveller"

- Buy and sell on the same day

- Goal: Profit from small price moves

- No carry to next day

Example:
Buy Zomato at 10 AM for ₹120
Sell by 2 PM at ₹125
→ ₹5 profit/share

✅ Quick gains
⚠️ High risk, needs fast decision-making

2️⃣ Swing Trading – "The Weekend Traveller"

- Hold for a few days to weeks

- Based on short-term trend or news

Example:
Infosys drops after results, you buy at ₹1,400
You hold for 7 days
It recovers to ₹1,500 → you sell

✅ Less stress than intraday
⚠️ Need to check news & charts

3️⃣ Positional Trading – "The Monthly Traveller"

- Hold for weeks to months

- Based on bigger market movement

Example:
Reliance is planning a Jio launch
You buy and hold for 2 months
The price goes up → you exit with good profit

✅ More stable
⚠️ Still shorter than investing

💡 Real-Life Analogy: Fruit Sellers = Types of Traders

  1. If someone buys fruits in the morning and sells them by evening, they are like an Intraday Trader — quick in-and-out trades within a day.

  2. If someone buys fruits on Friday to sell over the weekend, they’re like a Swing Trader — holding trades for a few days.

  3. If someone buys seasonal fruits to sell during a festival, they are like a Positional Trader — holding for weeks or months, waiting for the right moment.

👉 All are traders, but with different time plans, just like fruit sellers work on different selling strategies.

🧠 Recap

✅ Trading = Buying & selling stocks for short-term profit
✅ 3 Types:

- Intraday: Same day

- Swing: Few days/weeks

- Positional: Weeks to months

✅ It's like choosing your travel bag:

- Light & fast? Intraday.

- Medium backpack? Swing.

- Bigger bag? Positional.