Swing trading also seems great though as I haven’t made a single trade, and having more time gives me less chance of making an impulsive mistake rather quickly. I’ve been studying for roughly 8-9 months (on and off) and day trading seems ideal as it’s an approach that is fast, seems reasonable if you come in prepared and put in the work before making the trade. What kind of trading is most appealing to you? Why? Leave a comment and spark a conversation!ĭay trading is the most attractive form of trading to me. Instead of relying most heavily on technical analysis, you rely on a mix of technical and fundamental analysis to located and take advantage of longer-term trends.Ī position trader takes a “buy and hold” approach, and might maintain their position for months or even years, checking on weekly or monthly charts to get insight on how the stock, bond, or asset is responding to the given trend.
Position trading is like the slow but steady approach to trading. It’s vital for scalpers to have access to low trading commissions. With scalp trading, a trader might make dozens or hundreds of trades per day in an attempt to “scalp” a small profit from each trade by exploiting the bid-ask spread and targeting small intraday price movements.Ī scalp trader is probably the most constantly active type of trader during market hours, constantly buying and selling and letting small gains mount over time. Scalp trading is very short term, with positions that might be held from seconds to minutes. Swing trading doesn’t require constant monitoring, so it’s a great style for traders with busy schedules who are unable to trade all market hours. So a swing trade could be as short as a day or two, or you might take a position for several weeks or even in some cases months. Ultimately, you’re looking changes in corporate fundamentals that can cause swings in price that will allow you to claim a reasonable profit. Swing trading strongly relies on technical analysis and price action to determine entry and exit points. To try to maximize profits and minimize losses, you’ll typically use a profit target and set a stop loss.ĭue to the short duration, large price moves are uncommon so you’ll rely on frequent small gains to build profits. Day trading refers to short term trades where you enter and exit a trade within the same trading day.ĭay traders use technical analysis to find and exploit intraday price fluctuations.
0 kommentar(er)
