When you are getting involved with stock investing, you need to choose a trading style that works best for you. Instead of dabbling in many different styles, you would generally be better off by choosing one and sticking with it for an extended period of time. Here are a few of the different trading style that you could choose and what each one can provide you.

Scalping

Scalping is a type of trading strategy that is used by traders on a short-term basis. With this type of trading, a trader will open a position and then will close it out a few seconds, or minutes, later. The idea behind this type of trading is to take advantage of small fluctuations in the price of a stock. With this type of trading strategy, a trader will use short chart time frames and will generally employ technical analysis. They will try to identify profitable patterns in the market and take advantage of them. The scalping trader tries to realize small, regular profits.

Day Trading

Another trading style that you could use is day trading. Day trading is similar to scalping, except it will involve holding a position for a longer period of time. Instead of trying to close out a trade within a few seconds, the day trader might end up holding it for the majority of the trading day.If you are going to day trade, you have to meet rules that are set forth by the SEC. If you are determined to be a pattern day trader, you have to keep $25,000 in your trading account and you are required to have a margin account with your broker.

Swing Trading

Swing trading is another trading style that you can use if you want to get involved in the stock market. With this type of trading, it involves a longer time frame than day trading. With swing trading, you could open a position and hold it for a few days, or a few weeks. The idea behind swing trading is that you want to try to identify a trend, and then ride it until it starts to move in the opposite direction. A swing trader is trying to make big profits on every trade.

Position Trading

Position trading is a long-term trading strategy that most investors use. This is also referred to as a "buy and hold" strategy. With this type of trading, an investor will purchase stocks, and then hold them for an extended period of time, regardless of market conditions. They are not necessarily concerned with the short-term movements in the market. Investors that utilize position trading will usually engage in fundamental analysis of companies in order to get an idea of the long-term prospects of these companies. Once they find a company that looks promising, they will buy stock and then hold it for a number of years in many cases.

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