In the trading world full of traders, the quote “the sky is the limit” has been proven very true for many due to the fact that trading has had ample of opportunities. Many different trading styles can be choosing and applied in the market to generate some extra income besides their regular earning. However, it is still equally important that we choose a trading style which meets are needs and preferences. It is equally important that the selection depends on the psychology also. If you are looking forward to earning fixed returns, option trading is a better trading than swing trading.
On that note, let us look at some different trading styles that can be chosen and used depending on your own psychology.
- Intraday Trading: One of the most popular and practiced trading styles in the market is the intraday trading. Even though it is quite a risky style, people still go ahead and choose it. In this, the positions are squared off before the market closes. This is suitable for people who hardly are for fundamentals of this game or have essentials for successful investors in the long run.
Going ahead for the money management, a crucial part of it is timing entries and exists. The traders must always look for high returns and try to make them even higher while making even higher ROIs as compared to other trading formats. You can count this trading style as one of the most aggressive trading styles in the market. This makes it very important to understand the consistency and power of compounds and returns on a short term basis to become a successful trader.
- Swing Trading: In The swing trading style, the traders do activities which help them in predicting short term fluctuations in the prices of the stock overnight. This lasts from day 1 to a few weeks. When compared to intraday, the leverage is quite low here due to the fact that overnight risk associated with it. Brokers in the Indian stock market charge for SPAN and exposure margins.
- Positional Trading: Another pretty common trading style which mostly ignores the minor short term fluctuations is positional trading. This style of trading includes even lesser leverage as compared to swing. This timeframes of these styles are also high as the traders can anticipate when the price will rise in future. This mostly depends on the knowledge that you have about the ongoing activities going in the company which proves that staying active in the market is very important.
Given above is a list of few trading styles that can be used in the stock market. If you really want to know more, you can contact various different trading experts on the internet. To make this even easier for you, Arya app that can be found on http://arya.xyz/en software will help you in strategizing and choosing the right trading style for your journey through its AI assistant. It will also show the analysis of various necessary information that is needed for profit so make sure you check out the software.