Investments: Different Types Of Stock

#2 Short Term Trading

A trading period of one day to weeks is what we call a short term trade. You buy a stock and hold the position for one to a couple weeks. A short trade is entered by selling a position, covered by buying after one day or in a few weeks.

#3 Medium Term Trading

When you decide to hold a trade for a few weeks to a few months, this will be considered medium term trading. Traders usually follow the trend with a tailored stop loss for these trades.

#4 Long Term Trading

Should you decide to hold a stock for many months to many years, you will become a long term trader. Long term trading is made by fundamental analysis of a stock. Profit from the growth of the company, dividends, and bonuses attracts many people to this type of trading.

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Posted by on October 5, 2014
D'Vaughn Bell