Trade Categories

The Most Popular Trade Categories


Types of investing and stock exchange trading

Every investor or trader creates his own style and system. Yet, according to some basic criteria, investment and trading can be divided into several categories.

Day Trading
The classic daytrader is the fastest trader. Its time horizon for one trade is max hour, rather it is minutes for realization of the whole tradition. They are able to do up to several hundred stores a day. A special category is scalpers, which are directly second-hand players (max. Minutes). The market trend is mostly not interested.

Range Trading
Typically, a Range Trader holds a position for a full day of several hours. These traders do their business by analyzing the daily ranges of the shares.

Swing Trading
Swing traders are associated with smaller market trends, which are reflected in the multi-day movements of their traded shares. A typical time range is one to three days for a business. They use almost exclusively technical analysis of stocks, sectors and the market when selecting suitable candidates for their trades as well as in determining the basic parameters of trades.

Trend Trading
These traders are very similar to swing traders, but they work in the longer term. Typical range is more than 3 days but always max. 10 days.

Positional trading
In most cases, positional transactions are based on technical analysis similar to swing and treed traders. however, many positional traders attach some role to some of the fundamental analysis parameters, such as earnings growth, revenue growth, and so on.

This group does not count among traders, but I mention it here to complement the overall picture. These individuals invest in equities (do not trade with them) so that the price change brings them a yield over the long term (6 months or more).

Whichever of the above financial market trading methods you choose, remember that all profitable traders have a business plan for their activities and the rules they operate on the market. As a result, they can control their emotions more often, which are often the biggest enemy of the stock trader and investor.