Becoming successful in the stock market is no child’s pay. It requires time, money, and energy. Anyone who wants to become successful in this field needs to plan their trades and make a trading plan. These plans help them to reduce their losses to a minimum.

To become successful in the stock market, one needs to be disciplined and follow certain rules such as those listed below.

1. Experts always recommend that people entering the market should have a trading plan and should always use it. A trading plan helps people to set rules that enable them to understand the time to enter and exit the market.
2. Another important rule to succeed in the stock market is that one must approach trading as a business instead of treating this as a job or a hobby. If trading is treated as a hobby, there is no real commitment to learning. However, if one treats trading as a business, the person would be responsible for the profit/loss, taxes, uncertainty, etc. As a trader, the person would essentially be a small business owner and would need to research and build strategies to maximise business potential.
3. It is also essential that the trader makes full use of the technology. The use of technology like charting platforms give investors several ways to view and analyse the market.
4. As a trader, the person involved in trading needs to focus on learning each day. Complex research enables traders to understand the facts, world politics, news events, and economic trends that impact the markets.
5. Experts suggest that investors should invest only the amount they can afford to lose.
6. Based on facts and figures, it is important to develop the methodology.
7. While trading in the stock market, a stop loss can prevent users from experiencing significant losses.

Market participants:

1. Banks:
2. Large Institutional investors
3. Individual investors
4. Retail traders
5. HNI investors
6. Speculator
7. Trader
8. Investor
9. Hedgers
10. Speculators
11.  Arbitrageurs
12.  Margin traders

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Types of trading

Different market participants follow several trading approaches based on the investment goals, risk appetite and mindset. Below are a few types of trading popular in the stock market.

1. Intraday trading:

Intraday trading refers to buying and selling stocks on the same trading day via an online trading platform. Intraday trading is also known as Day Trading. Share prices keep fluctuating throughout the day, and during the trading session, investors draw profits from these price movements by buying and selling stocks before the market close. If someone is not able to do so, brokers may square off your position or convert it into a delivery trade.

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2. Mid-term trading:

In mid-term trading, the traders hold a position for a few days, taking advantage of fundamental factors and technical setups. The medium-term trading duration ranges from one week to several months.

This trading technique is suitable for a wide range of individuals. In this trading technique, the performance is determined based on the trend of the assets in the portfolio.

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3. Swing Trading:

Swing trading is a trading style that attempts to capture short-to-medium term gains in a stock over a few days to several weeks. Swing traders mainly use technical analysis to look for trading opportunities.

In addition to the technical analysis, swing traders may also use fundamental analysis to analysing price trends and patterns.

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4. Long-term trading:

In a long-term trading style, traders hold on to a position for an extended period of time. It is also known as position trading. A position trade ranges from a few weeks to a couple of years. Many long-term investors depend strongly on fundamental analysis. These traders are concerned with the future outlook of the market. Also, these traders focus on the factors driving the long-term trend.

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Qualities of good investors:

To become successful in investing requires more than just financial knowledge about the keys to investing. Investors like Warrant Buffet have some critical traits which set him apart from the other investors in the market. Some of the qualities of good investors include:

1. Goal setting
2. Patience
3. Risk aversion
4. Knowledge
5. Decision making skills

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Screen Timing based on type of trading)

Screen time refers to the amount of time a person sits in front of their laptop or screen. While long-term investing requires less screen time, intraday trading requires more screen time.

Swing trades require less screen time and are generally preferred by professionals and people on the job.

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Conclusion:

Depending on the way you would like to participate in the market and the product you want to put your money, you could be one of the market participants listed above. Each of the market participants listed above differs from one another. Based on the risk appetite and the product the person wants to invest in, one can take a stance on the type of market participant the person would like to be. Once this is clarified, the market participant can focus and build their strategies accordingly. It will have a strong impact on the profit and loss of their account.