==== ====The best place for online tradinghttp://www.plus500.com/?id=38000&pl=2==== ====There are many methods and styles ...
other sources, Value trading style - trading according to merits of individual stocks not to wholemarket, and Conscious tr...
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Popular Online Trading Styles

The best place for online trading
Published on: Mar 4, 2016
Published in: Design      Business      Economy & Finance      
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Transcripts - Popular Online Trading Styles

  • 1. ==== ====The best place for online tradinghttp://www.plus500.com/?id=38000&pl=2==== ====There are many methods and styles used by online traders to trade. The categorization of theseonline trading styles can be done using many criteria such as the trading products, trading intervalbetween buying and selling, methods/strategies used for trading, etc.Based on the product traded, online trading styles include stock trading, options trading, futurestrading, commodity trading, forex trading etc. Stock traders trade equities or shares fromcompanies. Option traders trade options, which enable one to buy or sell a right at specific timeperiods under specific market conditions. Online futures traders and online commodity traderstrade contracts; contracts for products like crude oil and natural gas or contracts for treasury notesand bonds. Online forex traders trade currency pairs, they buy one currency and sell another oneaccording to exchange rate changes.According to the interval between buying and selling of products online traders can be broadlyclassified in to short-term traders and long-term investors. Usually traders with trading interval lessthan one year are known as short-term trader and those with trading interval more than one yearare known as long-term investors. Short-term investors, forms the majority of active traders, tradeproducts according to short-term trends. They trade products usually according to its merits. Long-term investors trade with long-term goals; they are usually company/industry specialists want toinvest in growing fields.Short-term trading can be further classified in to day trading, swing trading and position trading.Online day trading is the most active type of trading. Day traders trading interval does notexceeds one day. They buy and sell products with in seconds, minutes or hours for usually smallgains. Day trading eliminates overnight risks. Day trading involves scalpers - those buy and selllarge amount of shares/contracts with in seconds or minutes for very small per share gain, andmomentum traders - trades according to the trend pattern of specific shares/contracts with in aday.The buying and selling interval of online swing traders range from few hours to 4 or 5 days. They,like day traders, trade shares/contracts according to slight fluctuations in price, but they are willingto hold their position until the next day. Online swing trading involves overnight risks but have gainpercentage higher than that of day trading. Online position traders trade equities/contracts with aninterval of days to months. They relay on long-term trends and company performances. They havehigher gain percentage and higher risks than online swing traders.According to the strategies followed online trading can be classified in to Brother-in-law style -traders seek advice from brokers or other traders, Technical trading style- traders use advancedsystems to find out trading trends, Economist trading style - traders relay upon economicpredictions, Scuttlebutt trading style - trading according to information extracted from brokers or
  • 2. other sources, Value trading style - trading according to merits of individual stocks not to wholemarket, and Conscious trading style - combination of two or more of above styles to finding rightopportunity.Praveen Ortec works for NobleTrading.com, a discount online trading broker providing online daytrading and other online swing trading on 4 different trading systems.Article Source:http://EzineArticles.com/?expert=Praveen_Ortec==== ====The best place for online tradinghttp://www.plus500.com/?id=38000&pl=2==== ====

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