Most of us are well understood by
the term “Trading” But do not have much knowledge about trading and its types. Trading
indicates buying and selling of financial assets /securities in order to make
profit over a certain period of time. During financial transaction various
types of trading practices that investor follows. Trading can be done for short,
mid and long term.
Three major types of trading are:
1. Day Trading
2 .Swing trading
3 .Positional trading
11. Day
Trading - Day trading is the buying and
selling of financial assets for a single day such as currencies, stock, future, and
option in order to make a desired
profit. Day trading are short term trading where traders close their trading
within the same day thus minimizes the risk. The main objective is to earn
quick profit.
12. Swing trading - Swing trading is also known as
momentum trading and is one of the kinds of fundamental trading where position
are held for longer time than a single day. The main motive is to identify
market trends and capture profit.
13. Positional
trading - Positional trading is long term trading where traders look for benefit over a price movements for long period of time
.Traders generally hold their position from days to weeks and month as well as.
As this type of trading make huge profit by holding position but different
risks are involved in it. A team of fundamental and technical analyst is
required to carry out right trading strategy.
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