01/28 Stock Market Trading Styles
Everyone has different stock trading styles and most like to stick with one. I personally like to move around and change my styles depending on what the stock market is doing. The reason why I don’t like to stick with one is because I like to change different styles and be flexible with whatever the stock market gives us. Most stock traders like to stick with one and that is okay. Stick with what works for you and master that because if it is making you money it can make you more money. Remember to always change your strategy when you look for trading stock picks.
The reason why I like to swing trade is because you can get a lot of points but you have to hold on to that stock for quite some time. I know most traders don’t like to hold their position for more than just a day. One of the positives about swing trading is that you get to use technical analysis and you can also take your time as you look for them. You get to really analyze the stock trade in depth and use your technical indicators to see your support and resistance lines, look for a stop loss, and look for a profit target. The other reason why I like swing trading is that you don’t have to sit in front of your computer all day long looking for plays.
Trending trading is another style of stock trading. With trend trading you will hold your position and follow a trend to a certain stock or sector. For example, let us say that the agriculture stocks have been on a momentum upward; a stock trader will buy stock and hold it until that trend looks like its topping out. I like to trade these because you can catch a ride up for a good percentage gain. These are easy to spot and easy to trade. What most people don’t like about these stocks is that you have to hold these over night for a couple of days to weeks. Swing traders like to follow these, some day traders like to trade these during the day and get out before the market closes.
Day trading I think is the most popular stock market trading style. Most people that day trade only do it for a couple of hours in the day and it is usually in the morning when everyone is trading. What I like about day trading is that I only trade for the first 90minutes of the trading day and the last hour. I make a good living just doing this but at times waking up early is hard for some people that are in different time zones. The other thing that I like about day trading is that every day is a new day. If you lose money the day before it doesn’t matter because you can make it back the next day and then some more the same day.
These are the different types of stock trading styles that I like to do. Keep in mind that you can buy stock and also sell stock short with these three different styles. Make sure that you contact your online stock broker to see their sell short list or how many stocks you will be able to sell short. Day trading is great for scalping stocks or holding them for a couple of points in a day. Swing trading is great because you are able to think about a plan and don’t have to sit in front of a computer all day. Momentum trading is great because you can follow a trend and get a great percentage gain with that move. Find which one works best for you and play around with them on a virtual trading account.