What Kind of Trading You Prefer to Make Money?

According to the investment time duration of investors the investment can be categorized into 5 major categories like;

• Intraday
• Swing Trading
• Short Term
• Positional/ Medium Term
• Long Term

Intraday Trading
In Intraday trading buying and selling of stocks/ securities will happen within a day. That means if you are buying any stock in a same trading day, you have to sell the same on the same day and vice versa or (if you are selling any stock in same trading day, you have to buy back the same in the same trading day). Here you cannot continue the holding of a stock for more than one day.

Swing Trading
Swing Trading is a type of trading with a time frame of 3 to 5 days. Normally this kind of trading is less risky than Intraday Trading. In comparison to intraday trading swing trading will give you more time to execute and initiate the call. By considering the risk involved in it, intraday trading and swing trading are not advisable for beginners.

Short Term
Short term investments are those investments which range from 1 month to 3 months. These type of investments are suitable for beginners and new traders because you don’t need to be hurry while buying or selling the stock. At the same time the trader will be benefited with reasonable profit also.

Positional/ Medium Term
Positional/ Medium Term investments are those which are done with a time frame of 3 to 6 months. Positional/ Medium Term investments are suitable for those who are looking to make profits from the market over a period of 3 to 6 months.

Long Term
If you have the enough patience to wait for more than 6 months then long term investments will be the better option for you. In this type of investments the performance of stocks are purely depend on the fundamentals of company. Possibility of losing money because of short term fluctuations in the market can be eliminated in long term trading.

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Tagged as: intraday trading, Investment, swing trading, trading