Trading – the most impactful choice of making money to millions of people across the world. There are many types of trading, but the two major are Swing Trading and Day Trading.
Are you much more interested in knowing what type of trader you are?
If so, then here follows some interesting information for you!
Trading without knowing about what type of trading you are involved in is the core cause for many to fail. This also ends up with the wrong selection of a trading system. Remember, the trading system you choose must correlate with your character traits and personal strength.
Understanding the trading system you have chosen is imperative. Choosing the system randomly, it is because recommended by professionals, friends, or through reliable online sources may not be enough reason to determine if the system chosen is apt for you. Remember, each trader has his own talents and interests. His personality also differs by the way he accepts the loss of profit. Therefore, determining your choice of the trading system from others’ experiences will be the wrong way.
Try to understand your own skills and know yourself. Most of the traders spend most of their time just surfing through the trading forums and looking for the next trading system that is exactly involved in trading. Finally, they also forget to understand what type of trading they are into. Remember, the moment you enter into the market, you must be patient enough, never get bored of the market movements, be skilled in decision making and take the decision at the right time. You must also be emotionally stable and focus on the market, no matter it is short-term or long-term.
All these considerations will determine how strong and determined you are. If you are lacking in any of these factors, then try to leverage your strengths and get more exposure to the market.
Types of Trading
Here are two major types of trading, which a trader must understand and know before entering the market. These types will also influence your trading styles & Intraday Trading strategy.
Key Highlights of Day Trading
- The trader will trade actively for long hours and try to make several traders in a day
- The trader needs to make many decisions in a short time-span
- The trader must be fast and must not take much time
- The trader must keenly focus during active trading hours
- The trader may come across many signals and traders in just one session
- The trader must be emotionally stable and never try to revenge
- The trader may experience more pressure during live trading
Key Highlights of Swing Trading
- The trader will follow higher time frames and try to make only a few traders in a week or month. I will never want to spend more time to trade
- The trader will have more time to decide
- The pullbacks may last for days during the trade
- The active trading period is highly limited
- The trader must be highly patient even for weeks
- The trader will get enough time to recover from the loss
- Have enough time to make decisions during one trading session
Related: Best Techniques for Stock Trading
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