Biyernes, Abril 15, 2011

Types of Traders/Trading

Trend traders- Buys a stock that is going up and hold until the trend starts to go down. They could be in a stock fro days or years, depending on the performance of the stock.

Swing traders- Have a somewhat longer stock holding period than do day traders, ranging from 2 days to more than a week. the trader must trade in much larger shares to make any serious money here in this kind of style.

Day traders- The objective of this style is to exploit the intraday price volatility and profit from small intraday price movements. Most of them close out their positions before the close of the market.

Scalping- The most common day trading style, and it's a very common swing trading style. they do not have a high tolerance for loss. they tend to get in and out of trading positions quickly. it's the shortest term style of trading making 20 or 30 trades per day. 

Momentum- The focus of the strategy is to identify stocks whose prices are changing at a faster rate than the industry average. in other words, the strategy means "show me a stock that is moving".

Walang komento:

Mag-post ng isang Komento