Home Trading Strategies What Are The Different Types of Trading Style

What Are The Different Types of Trading Style

What Are The Different Types of Trading Style

by the way if you’re enjoying the content so far hit the thumbs up button if you don’t enjoy it hit the thumbs up button anyway because my name is Reina too so moving on in this section right we’ll be discussing about the different types of trading methods as a stock trader right there are different ways to skin a cat you can be a day trader swing trader or a position trader so let me explain to you right what at this type of different trading methods and a pros and cons right – each first and foremost right day trading so day trading you’re usually trading right below the one hour time frame possibly the five or 15 minutes time frame and your goal as a day trader is to capture the intraday volatility right most stocks are I think we pretty much move about you know two three percent a day so as a day trader you are trying to capture this you know intraday move of the stock and you usually exit your positions right by the end of the day right before that the market closed you would exit your position so there’s no so-called overnight risk for a day trader so the pros of a day trader is that you can actually you know be profitable on most months right if you’re good at it you have an eight right you can make money on most months even though generate full-time income or a career out of trading the downside to it is that you know day trading it’s stressful it requires lots of screen time and the opportunity cost is high really high because you know you spend so much time day trading and if you don’t make it right the opportunity cost right it’s possibly five figures or more because you could possibly be working elsewhere a full-time job making maybe four thousand a month fried of you for a year that’s like almost like what 48 fifty thousand so if you go into day trading and after one year you don’t make it you can see that your opportunity cost is you know easily five figures so bear this in mind okay so this is day trading and you know what you can expect moving on swing trading so student trading typically you operate between the one hour and a daily timeframe okay the role as a swing trader is that you just want to capture one move in the market so let me explain so for example let’s say the market it’s in the range okay and market swings up and swings down so as a swing trader you by near the lows of the range and as the market heats up higher you exit right before the highs of this resistance so you can see that in essence right as a swing trader you’re just trying to capture this one piece of the move over here so this is just an example in a range market similarly if the market is trending you just captured that one you know one wave of the trend okay so that’s what I mean by one move in the market so the process of swing trading is that you know it’s less stressful you don’t need much screen time because you are trading off the higher time frames but the downside to it is there chances are right because of your lesser frequency of traits you won’t make money on most months right if you’re good possibly you can make money on most quarters and another downside is that you will not be able to write trends right because there’s a swing trader you’re just capturing one move in the market let’s say you know if the move you know it breaks out higher right you’re already off the trade so we know that’s a downside net you know you won’t be able to write a trend okay and finally right position trading so position trading is the obvious is the longest form of trading is where you are largely trading off the daily in the weekly timeframe and your goal as a position trader is to write trends in the market right basically just to illustrate right so you know the market let’s say it’s in a range okay breaks out starts to Train they reverse right so it’s a position trader your goal is to capture this meat of the move rightly that the meat the bulk of the trend right that’s what position trader tries to do so the process that you know is least stressful doesn’t require much screen time because you know you’re trading really the higher time frame the daily and a weekly timeframe and how often that’s you know one candle pain right for a daily timeframe every one day you get one new bar for a weekly timeframe everyone knew we could get one new bar so you can see that really there’s really not much thing to do besides you know sitting on your hands for a position trader the concepts that you need patience you need a lot of patience because you know it takes time to see results right position trading you would have the least number of trades because you know trading opportunities don’t always come okay and naturally you need more time to see results for a position trader so with that said right let’s do a quick recap right to the different trading methodologies that I’ve just day trading you’re looking to capture the intraday trend operating below the one hour time frame your trades usually last for a day or less swing trading you operate between the one-hour and the daily timeframe anyway in between your traits usually lasts a few days maybe sometimes a few weeks and last one is position trading usually operated on a daily timeframe and higher your trades right – will last usually weeks or even months or even you capture the really long term trends can be even years right so this had a tree broad base trading methodologies that’s out there okay and with that said right let’s move on you


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