VIEWS: 11 PAGES: 1 POSTED ON: 1/21/2011
There are different trading styles. You can do day trading. You can do swing trading. You can also do position trading. What you need is a trading style that matches your personality and psychology. In day trading, a trader opens a trade and closes it before the end of the day looking for quick profits by taking advantage of volatility in the market. Day trading is for you if you have the time to sit in front of your computer monitoring the market on a daily basis. Many day traders spend hours sitting in front of their computer monitors waiting for the right time to make a quick killing. 90% of the people who try day trading give up within a few months finding it to be stressful. No doubt for inexperienced it can be stressful. You can easily fatigue yourself by sitting in front of your computer for hours everyday. However, in recent years, day trading has become popular. There are people who make a successful living by day trading different markets like stocks, futures, forex and commodities. It all depends on your personality. If you are action oriented risk taker and want quick and fast action, then day trading is for you. On the other hand, in swing trading, a trader looks for a trend that can last from a few days to a few weeks and tries to ride it at an early stage till such time the profit targets are met. Swing traders are most trend riders. In swing trading, you don't have to sit in front of your computer staring at the monitor all the time. You only need to monitor the market for something like 30 minutes daily to decide when is the best time to ride a trend. Once you have placed your stop loss, you are almost free. The market will take it's own course. If it moves in the direction that you anticipated, you will make what you had planned. If the market moves in a wrong direction, the stop loss order will take care of the trade. Your trade will be closed when the stop loss is triggered. Day trading is a serious business. Many people think that they can day trade as a hobby. Never make that mistake. For most people who have a job, day trading is out of question. But swing trading is possible. At the end of the day, they can monitor their trade and move the stops if the market is changing. In the end, choose a trading style that best suits you!
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