1:10 – Experience the power of share trading with our user-friendly platforms. Whether you’re a seasoned investor or just starting, our tools and resources make buying and selling shares straightforward and efficient.
- Stock trading involves buying and selling shares of publicly traded companies on stock exchanges.
- Types of stock traders include long-term, short-term, day trading, swing trading, and high-frequency trading, with each having a different time horizon and goal.
- Stocks are typically categorized based on company size or market capitalization, industry, and growth vs. value opportunities.
- Trading stocks involves risk, including the chance that you might lose up to your entire investment.
Types of Stock Trading
Stock trading and the people who do it come in many varieties and feature myriad strategies and approaches. Often, stock trading is categorized based on one’s desired holding period, or time horizon.
Long-term trading involves buying shares of a company and holding onto them for an extended period, usually several years or even decades. The goal of long-term trading is to benefit from the growth of the company over time and to earn dividends on the shares. Long-term buy-and-hold traders are often categorized more as investors but may also be called position traders.
Short-term trading, on the other hand, involves buying and selling shares over a briefer period of time—usually a few days, weeks, or months. The goal of short-term traders is to make quick profits by taking advantage of market fluctuations. Day traders have an intraday time horizon, making several trades over the course of a single day or a few days. Swing traders have a more medium-term outlook, looking to capture trends and momentum over several weeks or months.