Home
Best Selling
Ebooks
Pick Best stocks
  My trading blog
FREE newsletter
  Stock chart analysis
Stock chart patterns
Trading strategy
Trading system
  Best online brokers
Stock trading books
Stock trading journal
Trading software
Trading education
  ETF Trading
Commodity ETFs
  Active investing
Ways to invest
  My trading tips
Stock screeners
Daytrading
  About Me
Contact me
Questions ?
Disclaimer
Privacy Policy
SEARCH THIS SITE
  MEMBERS AREA
MY SERVICES

Types of stock trading

Select your best way
how to trade stocks

There are several types of stock trading based on profit expectations and on the time frame of completed trades.

I divide them into these categories:

  • Day trading is for very short-term trades. A day trader holds a position only for one day. No position is held overnight. Such traders use intra-day charts with a very short primary time frame like 3 minutes, 5 minutes, or 10 minutes. Their trades last from several minutes to several hours.
  • Swing trading is based on daily charts. Trades can last from one day up to several days or a few weeks. This is my favorite time frame. The basic type of chart is a daily one. Some swing traders also use 240-minute (4-hour) charts as the primary time frame. I like these 4-hour charts too. See my charts setup for my analysis.
  • Position trading is based on weekly charts. Such trades can last much longer. A typical holding period is between 1 month and 6 months. This type of trading could be based solely on technical analysis of stock charts but it can be also accompanied by some form of fundamental oversight. Most active investors has such one.

    I like personally to have global macro oversight and then utilize it with position trades based on technical analysis.


Any of these approaches can make money. But if you plan to generate regular income from trading, you have to consider a shorter time frame for trading (day trading or swing trading). Position trading is good if you want to create more wealth.


There are a lot of stock exchanges around the world. And there are a lot of investors playing on these exchanges. For every one buyer must be one seller is the rule. And these traders or active investors utilize different styles and types of stock trading.

Almost all types of stock trading could be profitable. But profitability is based on complex rules of stock trading system. It is not only about picking best stock pick. There are also money management, risk management and trade management rules accompanies in every profitable stock trading system.

My special multi time frame
stock market trading tip

I like to use the same stock for swing trading and for position trading. When I find stock with a nice chart for a position trade, it also often means several possibilities for a swing trade in the same stock.

It is also good to have several different trading strategies in your stock trading system and your trading business plan. There are different periods of stock market action - markets are bearish, bullish and sometimes also trading in range. It is good to have different strategies to be able to use them in these situations accordingly.


Return from Types of stock trading back to Stock trading system

Return from Select your way how to trade stocks back
to simple-stock-trading.com



Follow me on...


How to Select the Best Stock
& ETFs Using
3 Simple Methods


AMIBROKER is good stock analysis software for stock traders



TRADING DIARY PRO

best stock trading tool for stock traders and investors