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What is the difference between stock trading and day trading?

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Today you can hardly find a soul in this world who has not made any investments. In the present day, you will find all the people hankering after some thing or the other. Some hankers after success, while some after fame. On the other hand, you will find a majority of the people hankering after money. Due to this rapidly growing inclination towards ‘money’ more and more people, today are taking up various investment decision with a view to earn profit. In early times, there were not many options available for the people to invest in as we have today. There was only one option available then and that was the investments in stock market, which is also known as the stock trading. The terms such as mutual funds, stock options, forex trade, etc have evolved or rather were introduced only recently. In addition, certain other terms like day trading, position trading, swing trading, etc too came into existence only recently. In early times, there were no further divisions of the types of investments in the stock market. There was only one the stock market and the usual trading of securities. As such, by tradition people use to invest in stocks and shares only. The introduction of so many new terms gave rise to a number of questions as well. One of the most frequently asked questions relating to all these investments are “what is the difference between stock trading and day trading?”.

Money today is everything that people can think of:
The present day has become such that at the end of the day all that people can think about is how to earn profit or in other how to get their hands on money. Money today is everything that people can think of. So much so, that to earn money people can go to any extent. Earlier, we have heard of the three basic needs of a human being, which were specified by WHO (which stands for the World Health Organization). The three basic needs, which were specified by the World Health Organization happens to be food, clothing and shelter. However, today there is another addition to this list thus making it the four basic needs of a human being. This new addition is profit or in other words money. In case you are thinking that, the fourth basic need is a new addition made by the World Health Organization, you are very much wrong. This is because it is we human beings have introduced the fourth basic need is addition is nothing but a mere example of the impact that money has in our lives. However, in this strive for money it should never be forgotten that money is not an end in itself but is instead a means to the end.

At first, understand the term day trading:
Before we go into understanding and discussing the differences between the stock trading and day trading, let us at first understand the term day trading. Every one of us has heard about the stock trading. Stock trading refers to the general trading or transactions that take place in a stock market. In a broad, sense all types of trading that takes place in a stock market comes under the term stock trading. On the other hand, day trading too refers to a type of stock trading. It is also known by the term short term trading. In plain words day trading usually refers to the trading of securities that is in other words the purchase and sell of securities that takes place during one trading day. The day trading usually refers to a short term investments. The profits of such investments are calculated on a per day basis.

Day trading is a new concept:
Day trading is a new concept and has been introduced only recently. As such, not many people know about this form of investments. It is also one of the most debated investments all over the world. Day trading involves very complex yet sophisticated instruments as well as services. Thus, now must have understood what is the difference between stock trading and day trading?

 

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