Trading has the allure of getting rich quick and draws many to the flame with false promises mainly because of mis information, false advertising and the playing on emotion. It is important to determine what your style of trading needs to be that fits with your lifestyle, goals, and emotional profile. Here are the main styles of trading and the qualities of each.
Short Term (Day Trading)
- In trade duration usually no longer than minutes to hours, not holding any positions over night
- Focusing on short term events or catalysts that require immediate trade management (entry or exit)
- Requires complete focus during the trading period on trade monitoring and trade orders and is not suitable for those that have 8-5 employment or can’t focus on that during the trading day hours.
- Requires Higher tolerance for stress
Medium Term (Swing Trading)
- Trades last days to weeks and can be entered by trade orders that allow for transacting while you aren’t able to actively log in and do the trades in real time.
- Catalysts are usually some kind of technical indicator that signals entry into a price cycle swing – either buy at low point and target selling at a higher cycle point for a stock/ETF rising, or selling at a high point and buying back at a later point at a lower price for a down trending stock or ETF.
- This is what style of trading our TQQQ Swing Trading System is geared for. See more information about it Here
Long (Investing)
- Trades last from months to years and focus on a longer term hypothesis about company or industry or economic impact to to the stock or ETF.
- Generally very low stress and doesn’t require daily monitoring of positions and trade orders