Tuesday , 20 November 2018

Which Of These 4 Trading Styles Do You Use?

Today’s infographic comes to us from StocksToTrade and it highlights key differences between four trading styles, along with the methods frequently used to identify each trade.

The original article has been edited here by munKNEE.com for length (…) and clarity ([ ])

1. Position Trading
Position traders look closely at a company’s fundamentals in order to accumulate sizable positions that they hold for periods of months or years. This could be done using growth investing or value investing methodologies. Meanwhile, technical analysis can be used to time each individual trade.

2. Swing Trading
Swing traders go with the flow. They aim to capture the gains of a stock (or options) as they attain short-term momentum in the market. This can be achieved by having a watch list of many interesting stocks, and constantly evaluating technical indicators until an opportunity is spotted.

3. Day Trading
The notorious day trader is usually glued to his or her computer screen, trading stocks throughout the course of a day. It’s a full-time job not meant for the faint of heart; however, there are people out there who have developed very effective strategies as well as the work ethic to do it strategically.

4. Scalp Trading
In scalp trading, it can be said that small profits add up. The goal here: to sell every time a profit window appears, and to do so many, many times!