Trading Types – Day Trading, Swing Trading and Position Trading

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Share Market Trading can be classified into either of these categories – Day Trading, Swing Trading and Position Trading. However, the common factor among all types of traders is that Stock market traders keep up with the news. The businesses and industries react to government actions, changes in oil prices, economic forecasts and world events. The successful stock market trader stays informed about the circumstances outside a company that could cause price fluctuations for the stock.

Day trading conditions the most intense approach to stock market trading. To be on top of the fluctuations in stock prices, day traders spend hours together in monitoring the market. Day traders could make dozens of trades any day, sometimes in a matter of minutes hoping to grab the wave of price change. They avoid the risks of long term buy and hold. Day trading could be exciting, the fast pace attracting risk takers. Yet this strategy for stock market trading is only effective for day traders, who apply analysis rather then emotion to trading decision. Savvy day traders could turn profits quick. Emotional traders usually lose fast and leave disenchanted.

Swing trading uses a slightly longer time horizon than day trading, watching a stock for weeks or months before trading. This type of stock market trading relies on careful monitoring of fundamental and technical analysis. Swing traders often specialize in a certain business or industry so that they become experts in the movement within those stocks. They also have more time to study the company financial reports and industry forecasts. Since swing trading does not require hours of daily monitoring, it is a good strategy for the trader who wants to make money from stock market trading without turning it into a full time job. Even the study of reports could be done during the daily commute or lunch hour so that the swing trader stays well informed.

Position trading works well for investors who want to be involved in the stock market trading, but run short of time. Stocks are being held for months awaiting any changes in the trend. Position traders keep up with the fundamental and technical analysis as well as news events but apply a long term strategy to their stock market trading.

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20 Responses to “Trading Types – Day Trading, Swing Trading and Position Trading”

  1. […] the original post:  Trading Types – Day Trading, Swing Trading and Position Trading Tagged as: broker, india-budget, investing, investing-tips, managing-money, money, mutual-funds, […]

  2. raghavarao says:

    GOOD EDUCATING PROGRAME FOR BIGENERS

  3. Abhishek Lucas says:

    good .I like the way of teaching
    abhishek.lucas1@yahoo.in

  4. vimlesh kumar mishra says:

    Really its a magical way of teaching to bigners…….

  5. Pramod kumar says:

    This site realy helpful who want enter in stock market………realy great effort

  6. Gautham Raj says:

    good work …really useful to me

  7. Aniruddha S. says:

    Nice work. it helps me lot

  8. haresh says:

    good article but still require more……………………….

  9. subhankar jana says:

    it is very useful for those person who are interested in share market.

  10. !!!! great … i have learnt a lot out of these info … very informative … thanks a lot

  11. V George says:

    Keep it up. very good work

  12. Subramaniam says:

    really appreciate your sharing of knowledge

  13. Good luck all of you for this kind of information………. there is lot’s of information for new bigeners who take interest in this industry………

  14. Javed Ali says:

    Very easy to make comfortable for entry in trading

  15. sumit says:

    its a very good program knowing about share and market it help youngsers like me who want to invest therir money in shares

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  17. labeeb says:

    thank you, i found perfect information about share trading technique but i think represent the information through diagram it may become too effective because the lengthy information make boring

  18. anish e john says:

    very nice way to aware a beginer about the trading and i hope this site will really useful for all the beginers.

  19. himanshu says:

    wonderful way to teach to deabuers to share market
    more information can be added

  20. ramesh says:

    i have got a little idea by reading this…………….

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