Long Term Trading
Long-term trading is when you buy a contract or group of shares and hopes that the prices will go up. With long-term trading, trades are held anywhere between several days to several months. Long-term investors normally fit this kind of trading style.
Position Trading is where trades are held from anywhere from several days to several months. Long-term traders look into or use long-time charts (usually daily, weekly and monthly charts) to have a grasp of where the asset is in a given trend. They seek to find out if there is a
possible movement in price of a particular stock, which can take up to months before it is played out.
Position trading is by far the most common type of trading style. Why? Because it involves the general public buying as well as holding onto stocks for a long period of time, regardless of where the market is heading.
Trend Trading, on the other hand, is a long-term trade held anywhere from several days to several weeks. It can last longer if the trend continues. Trend trading is a chart-based long-term trading.
Long-term trading results in fewer trades and fewer mistakes. Frequency of trades will reduce trading costs as well as mistakes. At the same time, long term trading pays lower commission.
Walang komento:
Mag-post ng isang Komento