types of trading in share market

“Types of trading in the share market” is one of the first topics every new market participant searches for—and for good reason. The trading style you choose decides:

  • How much time you need
  • What kind of risk you take
  • How volatile your returns will be
  • Which tools and platforms will suit you best

This guide explains the main types of trading in share market, and shows how Tradetron Tech helps you turn each style into a rule-based, systematic process instead of emotional, manual decision-making.

Educational purpose only. Trading and derivatives involve risk. Always use proper risk management and trade with capital you can afford to risk.

Main Types of Trading in the Share Market

Broadly, the types of trading in share market can be grouped as:

Each has a different time frame, risk profile, and psychological requirement. The good news is that all of them can be systematized and automated with Tradetron Tech.

Let’s go through them one by one.

1. Intraday Trading

Time frame: Within the same trading day (no overnight positions)

Objective: Profit from short-term price moves

Instruments: Stocks, indices, futures, options

Intraday traders:

  • Open and close positions within market hours
  • Aim to benefit from intraday volatility
  • Focus on price action, technical indicators, or order flow
  • Avoid overnight gap risk

Pros

  • Clear end-of-day: no overnight exposure
  • Daily feedback loop—fast learning cycle
  • Flexible position sizing

Cons

  • Requires screen time and discipline
  • High emotional pressure without systems
  • Transaction costs can add up

Intraday Trading with Tradetron Tech

Tradetron Tech lets you convert intraday ideas into precise, automated rules, for example:

  • Time-based entries (e.g., “Enter after 9:20 AM, exit before 3:15 PM”)
  • Conditions based on price, indicators, or volatility
  • Hard stop-loss and target rules
  • Time-based square-off for all open positions

Instead of reacting to every tick, you:

  • Define your intraday logic once
  • Backtest where possible
  • Deploy the strategy to run automatically during market hours

2. Swing Trading

Time frame: A few days to a few weeks

Objective: Capture “swings” or intermediate moves within a broader trend

Instruments: Stocks, indices, derivatives

Swing traders typically:

  • Hold positions overnight
  • Use daily or 4-hour charts more than 1-minute/5-minute charts
  • Combine trend and mean-reversion techniques
  • Use technical levels (support/resistance, moving averages)

Pros

  • Less screen time than intraday
  • Potential to capture larger moves
  • Lower impact of intraday noise

Cons

  • Overnight and weekend gap risk
  • Requires patience and position sizing discipline

Swing Trading with Tradetron Tech

Using Tradetron Tech, you can build swing systems such as:

  • Trend-following strategies based on moving averages or breakouts
  • Mean-reversion entries after sharp short-term corrections
  • Rule-based partial profit booking and trailing stops

Key automation features:

  • Entry triggers based on EOD or real-time signals
  • Automated stop-loss and target execution even when you are offline
  • Time or condition-based exits (e.g., close position after N days if conditions are not met)

3. Positional / Delivery Trading

Time frame: Weeks to months (or longer, though that starts to overlap with investing)

Objective: Benefit from broader trends and fundamental or macro themes

Instruments: Equity delivery, sometimes derivatives for hedging

Positional traders:

  • Build positions slowly and hold through noise
  • Often use both technical and basic fundamental filters
  • Aim for larger percentage moves rather than daily volatility

Pros

  • Lowest screen-time requirement among trading styles
  • Ability to ride big trends
  • Transaction costs spread over longer periods

Cons

  • Higher capital lock-in per idea
  • Exposure to multiple overnight and event risks
  • Requires strong conviction and patience

Positional Trading with Tradetron Tech

With Tradetron Tech, positional trading can also be rules-driven:

  • Define entry filters (trend, volume, momentum, etc.)
  • Decide risk per trade and per portfolio
  • Automate stop-losses, trailing stops, and rebalancing logic
  • Schedule checks at specific times (e.g., EOD scans and updates)

Instead of manually scanning and updating positions, your predefined logic does the work.

4. Scalping

Time frame: Seconds to minutes

Objective: Capture very small price movements many times a day

Instruments: Highly liquid stocks, indices, or derivatives

Scalpers:

  • Place many trades daily
  • Aim for small profits per trade with tight stops
  • Rely on speed, liquidity, and strict discipline

Pros

  • Very fast feedback
  • Lower directional risk per trade, if managed strictly

Cons

  • Extremely demanding psychologically and technically
  • High transaction costs
  • Hard to execute manually at scale

Scalping with Tradetron Tech

Human reaction time is often too slow for serious scalping. Tradetron Tech gives you:

  • Machine-driven execution for rapid entries/exits
  • Condition checks at high frequency
  • Strict, automated risk and time limits per trade

While scalping is advanced and not suitable for many, algorithmic execution through Tradetron Tech is almost essential for this style.

5. BTST / STBT (Buy Today Sell Tomorrow / Sell Today Buy Tomorrow)

Time frame: 1–2 days

Objective: Capture very short-term price moves across one or two sessions

BTST: Buy shares today, sell them the next day before delivery hits demat

STBT: Short-sell today, cover the next day (where regulations and instruments permit)

Pros

  • Benefit from overnight moves without long holding periods
  • Useful around events or strong momentum

Cons

  • Exposed to overnight gaps
  • Requires clear rules to avoid random entries

BTST/STBT with Tradetron Tech

On Tradetron Tech, you can:

  • Define conditions for BTST entries (e.g., strong close + high volume)
  • Set automatic next-day exits regardless of result
  • Apply portfolio-level exposure limits

This turns what is often an impulsive style into a rule-based short-term approach.

6. Futures Trading

Time frame: Intraday to positional

Objective: Take leveraged exposure to indices or stocks, both long and short

Instruments: Index futures, stock futures

Futures traders:

  • Use leverage to amplify returns (and risk)
  • Can go short easily to benefit from falling markets
  • Use futures for directional trading, hedging, or spread trading

Pros

  • Ability to trade both up and down moves
  • Efficient for larger capital and hedging
  • Clear contract structures

Cons

  • Leverage magnifies losses
  • Requires disciplined margin and risk control

Futures Trading with Tradetron Tech

Tradetron Tech helps you manage futures systematically by:

  • Automating entries based on price, indicators, or volatility
  • Implementing strict position sizing rules
  • Enforcing hard stop-losses and margin-aware conditions
  • Coordinating futures with other instruments (for hedges or spreads)

Rule-based futures trading reduces the emotional aspect of leverage.

7. Options Trading

Time frame: Intraday, swing, positional

Objective:

  • Directional bets with defined risk (option buying)
  • Non-directional income strategies (option selling)
  • Hedging and risk transfer

Options are one of the most flexible segments in share market trading, but also one of the most complex.

Common Options Trading Approaches

  • Directional option buying: Calls/puts to benefit from strong moves
  • Option selling for income: Short straddles/strangles, spreads, condors, etc.
  • Hedging: Using options to protect portfolios
  • Volatility trading: Positioning based on implied vs. realized volatility

Pros

  • Defined risk for outright buyers
  • Flexible payoff structures
  • Can profit from time decay, volatility, or direction

Cons

  • Complex pricing and Greeks
  • Option selling can be risky without proper hedges and stops
  • Time decay works against buyers

Options Trading with Tradetron Tech

This is where Tradetron Tech is especially powerful:

  • Multi-leg strategy automation: Build and manage complex spreads as a single strategy
  • Rule-based entry and adjustment: Shift strikes, add hedges, book partial profits automatically
  • Time and volatility filters: Trade only when your edge is present
  • Strict risk controls: Max loss per strategy, per instrument, per day

Options trading is one of the biggest beneficiaries of systematic, algorithmic execution.

8. Systematic / Algorithmic Trading

Time frame: Any (from scalping to positional)

Objective: Execute predefined, rules-based trading systems consistently

Systematic trading is not another “type” of trade by time frame—it is a way of operating across all the types of trading in share market.

Instead of:

“I feel the market will move up today…”

You move to:

“If A, B, and C conditions are met, go long with X quantity and Y stop-loss; otherwise, do nothing.”

Why Systematic Trading Matters

  • Removes many emotional decisions
  • Makes performance measurable and improvable
  • Allows running multiple strategies in parallel

Systematic Trading with Tradetron Tech

Tradetron Tech is built around systematic trading:

  • No-code strategy builder: Define logic with conditions, not code
  • Cloud execution: Strategies run even when you’re offline
  • Backtesting and paper trading: Test ideas before deploying live
  • Risk and portfolio controls: Keep drawdowns and exposure within defined limits

You can apply this framework to intraday, swing, positional, futures, and options—turning any style into a consistent process.

How to Choose the Right Type of Trading in Share Market for You

Use these filters:

Time Availability

  • Full-time screen: Intraday, scalping
  • Part-time: Swing, positional, options income strategies
  • Minimal time: Positional, rule-based systems on Tradetron Tech

Risk Tolerance

  • Low to moderate: Swing, positional with defined stops, hedged options
  • Moderate to high: Intraday, futures, unhedged options selling (with caution)

Capital Size

  • Smaller capital: Cash equities, options buying, small systematic strategies
  • Larger capital: F&O, diversified systematic portfolios

Emotional Temperament

If you tend to overtrade or panic, systematic approaches on Tradetron Tech can help enforce discipline.

Learning Interest

  • Options and futures require more conceptual learning
  • Intraday and scalping demand market feel plus systems
  • Positional trading focuses more on trends, risk, and patience

How Tradetron Tech Unifies All Types of Trading

Regardless of whether you prefer intraday, swing, positional, futures, or options, Tradetron Tech provides a common framework:

Design

Convert trading ideas into clear rule sets using the no-code builder.

Test

  • Backtest (where supported) to understand historical behavior and drawdowns.
  • Use paper trading to see how strategies behave live without risking capital.

Deploy

Run strategies automatically in the cloud with defined quantities and risk limits.

Monitor & Improve

  • Analyze performance
  • Refine logic
  • Scale position sizes responsibly

Instead of manually managing different types of trading in share market, you define your logic once and let Tradetron Tech execute it consistently.

FAQs: Types of Trading in Share Market & Tradetron Tech

1. What are the main types of trading in share market?

The main types include:

  • Intraday trading
  • Swing trading
  • Positional/delivery trading
  • Scalping
  • BTST/STBT
  • Futures trading
  • Options trading
  • Systematic/algorithmic trading as an approach across all of these

2. Which type of trading is best for beginners?

For many beginners, simple swing or positional trading with strict stop-losses is more manageable than aggressive intraday or leveraged F&O. Using Tradetron Tech, you can start with small, rule-based strategies, observe behavior, and scale gradually.

3. Can I use Tradetron Tech for intraday and positional trading both?

Yes. Tradetron Tech allows you to create multiple strategies:

  • Intraday systems with strict intraday square-off
  • Positional systems that hold across days or weeks

Each strategy can have its own logic, time rules, and risk limits.

4. Is algorithmic trading only for professionals?

Not anymore. With platforms like Tradetron Tech, systematic and algorithmic trading is accessible to individual traders as well. You define rules; the platform handles execution, monitoring, and risk enforcement.

5. How do I reduce risk across different types of trading?

Some best practices:

  • Limit risk per trade and per day/week
  • Use stop-losses and position sizing rules
  • Avoid over-leverage in futures and options
  • Diversify across strategies and time frames
  • Use Tradetron Tech’s portfolio and risk controls to keep exposure within defined limits