Online trading is becoming very popular in recent days. The advantages and benefits gained by the traders are encouraging many new traders across the world to enter trading. There are different types of stock trading available and you are flexible to choose as you prefer. However, each type has its own advantage and disadvantage to offer.
Before you enter into trading, it is imperative to know the various types of trading available including intraday trading. Education yourself about the trading types can help to choose the perfect trading platform, according to your interest and expectation. Trading involves investment of capital with the expectations of making a good amount of profit, while avoiding risk. Therefore, this emphasizes on the need to analyze well before you choose to trade.
Types of Stock Trading
Here follows some remarkable types of trading:
In this type, the trader will buy and sell stocks any number of times throughout the day with the hope to make reasonable profit. This trading will also allow the trader to earn quickly. However it also has equal amount of risk. The key objective of day trading is to get in and out quickly of any particular stock with some profit for the day.
Day trading is divided into two categories and they include scalpers and momentum traders.
In swing trading, the traders will have longer time horizon compared to the day trading to hold the position in the stock. Swing trader will also attempt to predict any short term fluctuation in the prices. However, swing trader can hold stocks for more than one day, unlike the intraday traders. This type of trading will enable traders to hold stock from few hours to even several days.
This type of trading is similar to the swing trading, however it has even more longer time horizon. In this trading the trader will hold stocks for a certain time period, which may be even one day to up to several months. This trader needs to identify stocks in accordance with the technical trends and the price movement.
Although this type of trading is not properly described, this in simple term refers to the medium used for entering and executing trades. Online trading may include long term investment, day, swing and position trading. It enables the traders to gain direct access to the online trading platform and execute the trades with the web based broker.
Trading is further classified into:
Short term trading
In this the trade period will be from one day to a few weeks. In this trading, the stock is bought and it is held in position for up to few weeks. The trade is executed by creating sell position and this is covered by buying the stock after one day or in few weeks.
In this type, the trading period will be even up to few months. In this type, Stop loss trend is followed by the traders.
Long term trading
In this type of trading, the stock is held by the trader for even up to many years. The decision of investment is made by a fundamental analysis. Profit is gained in accordance with the growth of the dividends, company and the bonuses.
Many trading strategists have introduced by companies in different models of trading opportunities and earnings prospects. We do care for technical analysis and trending centiments.
We do belive that If fundamental traders or systemaic investors are able to properly recognize the current position of stocks and subsequent price movements that are likely to occur, our investors stand a very good chance of executing successful share market trades.
Trading on fundamentals may be risky in cases of euphoria and hype, so it is advisable to take in-depth share market training & technical analysis course from recognize institution. After taking authentic training in Indian share market, you will be able to mitigate risk on capital. You can take valuable advise for short-term trading profits. We always insist you to opt for handly homework before jumping for investment opportunities.
I am Hitendra Dixit. I am a civil engineer, at the age of 47 I have changed my profession and came in to stock market. I got excellence award for best share market training institute in India. I provide training in live market, during training sessions I do trade with real money in front of members. Many of my members left their job and became a professional trader with my support and guidance.