Buying and Selling of Securities,Commodities,Goods or Services.
Types of Trading:
1. Stock Trading
2.Commodity Trading
3.Forex Trading
4.Derivatives Trading - (Futures and Options)
Trading Based on Time Frame:
Day Trading :
The Stock or Future Day Trader is Someone who is buying and selling IntraDay.
Advantages:
Can Benefit both Long and Short and take advantage of Quick Swing in both the Directions.
Disadvantages:
Its Trading not Investing.
[Note: Investing means Money Working for us and Not we working]
Day Trading requires most effort. Your Attention on the Market has to be consistent.
Involves Trading cost and Commision.
Swing Trading:
The Swing Trader could be Stock Option or Future Investor. The Person looks for Profit within Days and Weeks.
Advantages:
Slower Cycles of Trades[Fewer Trades to Make], Technical Analysis is used Primarily to identify these opportunities. Average Profit Percentage can be higher typically than Day Trading.
Disadvantages:
Higher Profit Target means Higher Risk per Trade.
Positional Trading: Buy and Hold
Usually Building a Portfolio of Stocks,Bonds and Mutual Funds and to Hold for Longest Term.
Advantages:
If you pick using plenty of Fundamental analysis, the gains could be high with few trading costs.
Disadvantages:
No Idea of Profit Objecttive. Certainly No Idea when to give up and move on.
Types of Trading:
1. Stock Trading
2.Commodity Trading
3.Forex Trading
4.Derivatives Trading - (Futures and Options)
Trading Based on Time Frame:
Day Trading :
The Stock or Future Day Trader is Someone who is buying and selling IntraDay.
Advantages:
Can Benefit both Long and Short and take advantage of Quick Swing in both the Directions.
Disadvantages:
Its Trading not Investing.
[Note: Investing means Money Working for us and Not we working]
Day Trading requires most effort. Your Attention on the Market has to be consistent.
Involves Trading cost and Commision.
Swing Trading:
The Swing Trader could be Stock Option or Future Investor. The Person looks for Profit within Days and Weeks.
Advantages:
Slower Cycles of Trades[Fewer Trades to Make], Technical Analysis is used Primarily to identify these opportunities. Average Profit Percentage can be higher typically than Day Trading.
Disadvantages:
Higher Profit Target means Higher Risk per Trade.
Positional Trading: Buy and Hold
Usually Building a Portfolio of Stocks,Bonds and Mutual Funds and to Hold for Longest Term.
Advantages:
If you pick using plenty of Fundamental analysis, the gains could be high with few trading costs.
Disadvantages:
No Idea of Profit Objecttive. Certainly No Idea when to give up and move on.
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