Trading Techniques - Types of Trading
Among the styles of Trading the difference is the period of time. That is, the time you take within each transaction.
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The Scalpers
These traders open and close operations quickly, so operations can take minutes and even seconds. They usually open several operations in a wave session. With this technique you can achieve fast profits, you need a high knowledge and concentration if you want to make this type of trade, in addition to that you need a very fast platform because the seconds here can influence between winning or losing. It is necessary that there is volatility for this reason is operated in the opening of the market since at this time is where there is more volatility.
The Day Trader
Here operations are sought within market trends within the day. These operations last from minutes to hours, but the operations that start are completed within the same day, they are not left open until the same day.
When speculating on the day's market, you have to have a lot of mental control, patience and be alert at all times. All that is very stressful so most Traders do not support doing Day Trading.
It is one of the styles that most people choose, but you have to be very careful, there are many people who thinks that is easy money, and the stock market does not know what that is. It requires a high knowledge of the market because a bad transaction can make you lose all your money.
The Swing Traders
Transactions of this type of Trading may be open for days, weeks or even months. When they enter a market trend they do not leave until it is over.
It is a short-term trading, where it really does not matter how much the stock, or the asset in which we are going to trade but it is generally in favor of the main trend, when it is operated when the trend is at an end, it is called operate Contracts.
Position Traders
In this type of trading operations last months and months, while long-term trends are developed. Here it is about making the most of the tendencies to get a better profit.
Within all established strategies, this is the one that requires less knowledge, however, the simplicity of this has as against that it is difficult to stay within a trend. This type of trading is less stressful than Day trading or Scalping, because once the decision to invest and have the necessary research is made, the investment is not withdrawn until achieving a profit.
In conclusion, we can reach an agreement that trading has its risks no matter what time frame we try to use. Each period of time has its risks, advantages and disadvantages.
