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Popular Trading Styles

The trading world is full of different styles. Trading is classified using a range of factors such as the product traded, how often you sell or buy, your trading scheme and method, etc. These major trading styles are classified based on what they trade. These include forex, stock, commodities, futures, options, etc. Stock trading involves the trade of stocks and shares on specific stock markets. Option trading refers to trading contracts that allow the buyer or seller a contract/share to have a specific right of purchase/sale at certain times, under certain conditions this site.

Trading forex online involves buying one currency in order to sell another, according to currency exchange rates. Online trading of futures or commodities involves the trading of contracts. These trading contracts can be for financial products, such as crude gas and oil, or they could involve trading commodity and futures. The online trading industry can be classified into short-term and long-term investments based on how much time passes between the purchase and sale of products. The trading that has a time gap between purchases and sales less than 12 months is known as short term trade. Tradings with gaps longer than 12 months are called long-term investments.

Online traders have a tendency to be traders who trade for a short period of time. Trading contracts and shares is based on the changes of short-term prices. The growth of the industry or company is what long-term investors are interested in. They tend to be company/industry-specific specialists who trade in high volumes with a long-term goal. Trading on a short term can be done through swinging, position trading or day trading. One of the trading styles most in demand is day trading. Day Trading means that the period between selling and buying is no longer than a day. Day traders typically buy/sell contracts/stocks in mere seconds or minutes. Since day traders do not have to store stocks or options overnight, they are less at risk.

Daily, two different types of trader are active: 1) Scalpers. They sell large quantities contracts/shares for small profits per share. Momentum trader: They use the trend of current prices to determine their trading strategy. The swing trading activity is very active, just like the day trading. The period between purchasing and trading may range from four to a handful of days. The swing trader can only make small profits by trading on price variations. Swing trades take overnight risks when they hold contracts/stocks. The time between purchases and sales may vary by a matter of days, weeks, or months. These traders base their online trading on trends and performance over long periods of time. This type of trader has a greater risk, and a larger percentage gain per share. Traders can be classified into several categories based on their trading strategies: 1) trading like a brother in law, which is i.e. Trading on the basis of advice from other traders and brokers; (2) using technical systems to identify historical as well recent trends; (3) economic style trading; Trading on predictions of economic conditions; (4) trading based off information obtained by brokers, or other sources. (5) Value Trading, which is based upon the value of an individual contract or stock, rather than on the overall market. (6)

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