Before investing in the stock market, the first thing you should find out is what type of trader you are. There are many
different trading styles
, and not all of them have to work in the same way with your lifestyle. For example, if you have a pet that you love to pamper and pamper 24 hours a day, or you have a child who won’t stop asking you to take him to the park, do
nothing will go well for you.
Knowing these profiles will help you decide what type of accounts and broker are best suited to your needs. Go for it!
Scalpers are traders who trade with large investments and make trades in a matter of minutes or seconds. Scalping, or short selling, can go wrong quickly. It is often done at short notice, without sufficient study of the markets, leading to very bad trades.
Day traders ~~cover the night trader’s day shift~~, trade on the way to work, after work or during lunch breaks…. This is the most common trading style among traders who have just start in the markets. This way of operating consists of calculating the probabilities that an asset will rise or fall in value, and wait during the same day for it to reach the trading zone from which you can benefit.
The job of a “swing trader” is to trade stocks with high frequency. Your objective is to follow the movement of the charts for weeks and decide to invest when the trend could benefit you.
The main difference between swing trading and other forms of trading is that swing trading is risky because it can be done without fundamentals. If you look at the graph of any asset, you will see that there are seasons when it goes up in value and others when it goes down. Anyone might think that it is a good idea to invest when the stock is falling in price, because later, by logic or intuition, it will end up rising. And we must tell you something, operating without training is not trading, it is playing the lottery by buying very expensive tickets.
Investors use their own money and trade in large volumes. They feel very uncomfortable during drops and find their most comfortable place at peak points. In this case, they buy at a “low” price and go for the possible rise that an asset will have for years. As if you had bought Amazon shares 20 years ago, anticipating that today they would be worth 100 times more.
Finally, we want to remind you that you can continue learning Trading in the best way with the Download Trading Platforms Masterclass, with 40 financial training sessions full of educational and human quality, which will help you order and structure the market with a head.
We hope to have helped you once again, may the market be with you!