Day Trading involves purchasing and selling stocks within the same day. Day Traders share a common philosophy own no stock... and make a profit at it! Hundreds of trades can, and usually require to be done on the same day making it an adrenaline junkies dream come true because of the minute-to-minute cost fluctuations, insane pressure and extreme risks. For Day Traders this stock trading strategy is as addictive and profitable as betting, and for all but the very prepared, it is stock trading strategies Position Trading, or long term trading, carries much less risk than either of the above two stock trading strategies. Position Traders aren't driven by the every day ups and downs of the market. These investors look for changes in market trends and analyzing them as early as feasible. Fundamentally, they buy in to a used up-trend, sell in to a used down-trend, and go on holiday when the trend charts look like a bowl of pasta. They usually hold the stock for weeks or months and can be rewarded with larger than normal gains for their patience.
Swing Trading, often known as Momentum Investing, is all about riding waves together with your stock portfolio in lieu of a surfboard. The Swing Trader takes advantage of brief cost swings in strongly trending stocks. They buy when the stock is about to go up, and sell (or even sell short) when it is about to go down. Unlike Day Trading, you are the proud owner of stocks for days, and sometimes weeks, while waiting for the optimum buy/sell point. This requires some patience, but it can be very rewarding and it involves less pressure and work than being a Day Trader. Both Swing Traders and Day Traders share lots of of the same risks. View our favourite swing trading technique.
Value Investing is tailor-made for every bargain hunter and Warren Buffet wannabe!â Value Investors, unlike the two other trading strategies, aren't looking for the speedy turnaround, or short-term capital gains; they require stock possession in high-quality, under-valued companies that know how to make money. Value Investing requires an avid dedication to research and due diligence to ferret out the critical information before analyzing the information unemotionally and giving small or no attention to what the market is doing. The rewards for strict attention to the details in this strategy can be very profitable.
No matter which of the stock trading strategies you pick, keep in mind to stick with it; stay unemotional and never invest with money needed for rent/mortgage, bills, or food.
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