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What is Trading, how many types are there, how to start — complete Hindi guide for Indian stock market.
Published by The Retail Trader · AUG 19, 2026 · Features
What is Trading, how many types are there, how to start — complete Hindi guide for Indian stock market.
Trading means buying and selling stocks or other financial instruments in the short-term — for profit. Investment is for long duration, trading is for short duration.
Simple definition: > Trading = Buying and selling stocks quickly — in days, weeks, or months. Profit comes from price movement.
Trading vs Investing:
• Duration — Trading: Minutes to months, Investing: Years
• Goal — Trading: Short-term profit, Investing: Long-term wealth
• Analysis — Trading: Technical (charts), Investing: Fundamental (financials)
• Frequency — Trading: High (daily/weekly), Investing: Low (monthly/yearly)
• Risk — Trading: Very high, Investing: Moderate
• Time required — Trading: Full-time, Investing: Part-time
• Returns — Trading: Variable (losses common), Investing: 12-15% avg (long-term)
Important: 90% retail traders lose money. Trading is NOT easy money. It requires skill, discipline, and years of practice.
1. Intraday Trading (Day Trading):
• Duration: Same day (buy and sell within market hours)
• Chart: 1-min to 15-min
• Risk: Very high (leverage used)
• Best for: Full-time traders
• Capital needed: ₹1,00,000+
2. Swing Trading:
• Duration: 2-10 days
• Chart: Daily
• Risk: High
• Best for: Working professionals
• Capital needed: ₹50,000+
3. Positional Trading:
• Duration: Weeks to months
• Chart: Weekly
• Risk: Moderate
• Best for: Part-time traders
• Capital needed: ₹1,00,000+
4. Scalping:
• Duration: Seconds to minutes
• Chart: 1-min
• Risk: Very high
• Best for: Professional traders
• Capital needed: ₹5,00,000+
5. Algorithmic Trading:
• Duration: Automated
• Chart: Any
• Risk: Depends on strategy
• Best for: Tech-savvy traders
• Capital needed: ₹10,00,000+
Step 1: Learn (1-3 Months):
• Read TRT articles (50+ Hinglish articles)
• learn candlestick patterns
• Understand RSI, MACD, Moving Averages
• Learn to identify Support/Resistance
• Understand risk management
Step 2: Paper Trading (1-3 Months):
• practice with virtual money
• Do chart analysis on TradingView or TRT
• make your trading plan
• maintain journal
• Earn real money when you are consistently profitable
Step 3: Start with Small Capital (3-6 Months):
• Start from ₹10,000-50,000
• Focus on just 1-2 stocks
• Start with swing trading (not intraday)
• Follow 2% risk per trade rule
• Learn to control emotions
Step 4: Scale Up (6+ Months):
• Capital gradually badhao
• expand strategies
• Try intraday (when experienced)
• Try F&O only when you have 1+ year experience.
Tools:
• Demat Account — Purpose: To store Shares, Free/Paid: ₹0-200
• Trading App — Purpose: To Buy/sell, Free/Paid: Free
• Charting Platform — Purpose: Technical analysis, Free/Paid: Free (TRT)
• News Source — Purpose: Market news, Free/Paid: Free
• Journal — Purpose: Trade record, Free/Paid: Free (spreadsheet)
Skills:
• Technical Analysis — Reading charts, identifying patterns
• Risk Management — Position sizing, stop loss
• Trading Psychology — Emotions control, discipline
• Market Knowledge — Indices, sectors, macro events
• Brokerage Understanding — Charges, taxes, margin
Capital:
• Swing Trading — Minimum: ₹25,000, Recommended: ₹1,00,000
• Intraday — Minimum: ₹50,000, Recommended: ₹2,00,000
• F&O — Minimum: ₹1,00,000, Recommended: ₹5,00,000
1. Technical Analysis (Charts):
• What is: Predicting future price from price charts and indicators
• Tools: RSI, MACD, Moving Averages, Candlestick patterns
• Best for: Short-term trading
• On TRT: Full charting workspace available
2. Fundamental Analysis (Financials):
• What is: Analyzing the financial health of the company
• Tools: P/E ratio, EPS, Revenue growth, Debt levels
• Best for: Long-term investing
• On TRT: Financial data on Index detail pages
3. Sentiment Analysis (Mood):
• What is: Understanding the overall mood of the market
• Tools: India VIX, PCR ratio, FII/DII data
• Best for: Timing entries/exits
• On TRT: events on calendar, VIX data
Keep these six points in mind:
• Equity (Cash) — What It Is: Shares kharidna/bechna, Risk: Medium, Complexity: Low
• Futures — What It Is: Contract to buy/sell at future date, Risk: High, Complexity: Medium
• Options — What It Is: Right (not obligation) to buy/sell, Risk: Very High, Complexity: High
• ETF — What It Is: Exchange-traded fund (index tracking), Risk: Medium, Complexity: Low
• Commodities — What It Is: Gold, silver, crude oil, Risk: High, Complexity: Medium
• Currency — What It Is: USD/INR, EUR/INR, Risk: High, Complexity: Medium
Beginner recommendation: Start with Equity (cash). F&O only when 1+ year experience.
Keep these six points in mind:
• Brokerage — ₹20/order (discount broker)
• STT (Securities Transaction Tax) — 0.1% (delivery)
• Exchange charges — 0.00345%
• GST — 18% on brokerage + charges
• Stamp duty — 0.015% (varies by state)
• SEBI turnover fee — 0.0001%
Total per trade: ~0.12-0.15% of trade value
Trading without a plan = gambling. Entry, stop loss, target — decide everything first.
“Putting a stop loss triggers a trigger” — this is the biggest mistake. Without SL a trade can eat up the entire account.
10-15 trades a day = overtrading. Focus on 3-5 quality setups.
Loss occurred → another trade immediately. This is emotional trading, not a system.
“This stock will go up” — don't trade on tips. Do your analysis.
5-10x leverage is available intraday. 1% move is your 10% profit or loss. Careful.
Brokerage + STT + GST + Stamp duty — it all adds up. Significant amount on 100 trades/month.
Keep these points in mind:
• 📌 TRADING QUICK REFERENCE
• WHAT IS IT:
• 📊 Short-term buying/selling of stocks
• 📊 Profit from price movement
• 📊 90% retail traders lose money
• TYPES:
• 📊 Intraday — Same day (very risky)
• 📊 Swing — 2-10 days (risky)
• 📊 Positional — Weeks-months (moderate)
• 📊 Scalping — Seconds-minutes (very risky)
• HOW TO START:
• 1️⃣ Learn (1-3 months — TRT articles)
• 2️⃣ Paper trading (1-3 months)
• 3️⃣ Small capital (₹10-50K)
• 4️⃣ Start with Swing trading
• 5️⃣ Scale up gradually
• ANALYSIS:
• 📊 Technical — Charts, indicators (short-term)
• 📊 Fundamental — Financials (long-term)
• 📊 Sentiment — VIX, PCR, FII/DII
• RULES:
• ✅ Make a trading plan
• ✅ Always apply stop loss
• ✅ Max 2% risk per trade
• ✅ Risk:Reward 1:2 minimum
• ✅ Maintain Journal
• ✅ Control emotions
• COSTS:
• 💰 Brokerage: ₹20/order
• 💰 STT: 0.1% (delivery)
• 💰 GST: 18% on charges
• 💰 Total: ~0.12-0.15% per trade
• AVOID:
• ❌ No trading plan
• ❌ No stop loss
• ❌ Overtrading
• ❌ Revenge trading
• ❌ Tips to follow
• ❌ Leverage abuse
Keep these five points in mind:
• What Is the Share Market?
• What Is Swing Trading?
• What Is Intraday Trading?
• What Is Risk Management?
• What Is Trading Psychology?
The Retail Trader — educational market analysis. Not investment advice.
This article is for educational purposes only. It is not a buy or sell recommendation, a claim of guaranteed returns, or advisory guidance. Exchanges, SEBI and RBI change rules, rates and procedures from time to time, so verify every figure with your broker or an official source.