Investments: Different Types Of Stock
Different Ways to Trade Stocks
When it comes to being a successful stock trader you will need to educate yourself on the different ways to trades stocks; this will help you decide on what to analyze and how to analyze the market and underlying assets of a particular company.
First, ask yourself, what type of stock trader you want to become. The answer will depend on your understanding of yourself and your knowledge of different types of trading. Different types of trading hold demands of different personality types, availability of time and the amount of capital you can readily invest. For some people, this is too much, but there are many tools and quizzes out there that will help.
Four Ways to Make Money Trading Stocks
Based on the duration of the stock you’re holding, the different types of stock trading can consolidate into: Day Trading, Short Term Trading, Medium Term Trading and Long Term Trading.
#1 Day Trading
Day trading is where both buying and selling of a financial instrument, on the same day, and all trades get closed before the market closes for the day. If this is you, we call you an active trader or day trader. Day trading demands fast decisions, precision, quick action and is highly not advised for beginners.