trading styles

Various Types of Trading Styles – Read and Decide Which One is Yours

Stock Market

You might have heard several terms, while trading, but ask yourself, whether you know the real meaning of these terms. So, here we will give you the actual definition of these terms before providing stock market tips.

  1. Basket trading

The basket trading is defined as buying and selling of group of securities at the same time.

  1. Swing Trading

An approach of trading, which tries to gain good profit out of stocks in one to four days. Traders, who follow this approach, employ technical analysis to find stocks with short-range price momentum. These traders are interested in price trends and patterns of stocks, not in the fundamental value of stocks.

  1. Swing High

Swing High is term used in technical analysis when the indicator reaches the peak or when indicator is at top of all the stock prices. Swing High is that point in the chart, which is at the top of all the high prices of the stocks.

  1. Relative Strength

A momentum investing technique, which is used to compare the performance of a stock of the overall market, is called relative Strength. When you compare all the investments in the market relative strength, then you can evaluate the strongest investment performers. These investments are then recommended to the traders to purchase. The common strategy of Relative Strength is to “buy high, sell higher”. This implies, buy the stock, which is rising constantly, and sell it at the highest price.

  1. Day Trading

Intraday trading is trading in which buying and selling of stocks is done in same day. If you want to get the accurate intraday tips then implement some of the best intraday trading indicators. Usually the prime goal of the day trader is to make a living from trading stocks. Always believe in making small profits on numerous trades rather than luring for large profits. This way you can minimize losses on unprofitable trades.

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