Types of stock trading

Select your best way
how to trade stocks

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.

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

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.

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