Best Short Term Stock Tips Provider.
The Best Short Term Stock Tips Provider is First Adviser. Before starting to invest in the share market it is important to know how to invest? In 1998 SEBI Security and Exchange Board of India as a statutory regulatory body.
Large companies when started their business offers their shares. In order to increase their funds, they do such work. Some companies get bankrupt and gain lots of profit in very little time.
If any company does any type of fraud activity. Then it gets punished by the SEBI. Punishment can be in the form of any penalty.
Short term trading can be risky. Also, it is risky due to its volatile nature. Many factors affect the stock price with the time frame.
The company’s news, as well as customers, attitude effect on the stock’s going up and down.
The Best Short Term Stock Tips Provider
It is very difficult to find the market position will go. For an investor, it is difficult to work on different factors and strategies.
There is 500-600 SEBI registered tips provider in India. First Adviser is one of them. It gives the best tips which help their clients to earn more profit in less time.
Short Term means time duration od trading. In short, it means the time duration between the selling and buying of the shares is very short. This time duration range is from a few days to a few weeks.
The short term trading can be done in both the Stock market as well as in the Future market. Short term trading is also known as “swing trading”. Which means holding a position for less time.
Some of the popular trading strategies are:
Day Trading: This type of trading has a very high risk. In this strategy, the trader buys and sells the stock on the same day. The main aim of it is to take advantage of daily changes.
Short Selling: In this strategy traders first sell the shares by borrowing and buy from the open market and return it to the lender. Here, when the trader predicts that share prices will fall.
They sell their shares and buy them back when prices fall. In brief, traders want to earn a profit or take advantage of falling prices.
Margin Trading: In this strategy trader has to give a margin amount of the shares rest amount is given by their broker. It like taking a loan from the broker. The trader has to give interest on that amount.
This trading allows the trader to buy more shares than they can buy.
Position Trading: This type of strategy depends upon the price trend. Means Trade may end in a few days to a few weeks according to the price trend. Thus, in this strategy, the stock works on buy and hold for a shorter period.
Reason to Avoid Short Term Trading in The Stock Market
By doing short term trading your broker will make money whether you are in loss. So he will encourage you to trade frequently. But you will lose more than your initial investment in brokerage cost.
For short term trading, there is a high transaction cost than for the long term investing. Because you have to pay a depository fee for every stock you trade.
Short Term Capital Gain STCG is flat 15%. If you buy and sell frequently, then you have to pay STCG on your profit. You trade after one year than these capital gains are not applicable.
If a person trades frequently then he will consider as a ‘trader’. Then, their income will be calculated as “Business Income” by the Income Tax Department in the end. In addition to this, business income is taxed at 30%.
Short Term Trading offers very little time to think or to make a decision. You may end up with bad or wrong investment decisions.
We all don’t have tools and time to track stock prices every time. Even we can not easily find the price gap in the market. So, mostly we do short term trading influenced by friends, colleagues or Broker.
Guidelines And Advantage Of Short Term Trading
Short term trading is a faster means of making money in the market. You can earn profit in a day. The risk factor is for short duration. Like commodity tips, First Adviser also provides Short Term Trading tips.
If you find your decision wrong then at the same time you can withdraw the amount. And can reinvest in fresh. So your money will be at risk for a short duration.
With the rise of online stock brokers and cheap trades, day trading became a viable way for retail investors to turn a few days’ worths of quick wins into a substantial bankroll.
The very small number who do make money consistently devote their days to the practice, and it becomes a full-time job, not merely hasty trading is done between business meetings or at lunch.
Making Money in Short Term Trading
In Short Term Trading money making is easy if done smartly. As there is a very low-risk duration. Low-risk factor effects little on the mind.
If you have fast decision-making power than you can make more profit. Read the news about the market frequently. Observe the changes in the prices. Thus changes will help you to take the correct decision.