There are several methods and fashoins employed by online traders to trade. The categorization of these stock trading online styles is possible using many criteria for example the trading products, trading interval between buying and selling, methods/strategies used for trading, etc.
Based on the product traded, trading on the internet styles include stock investing, options trading, futures trading, commodity trading, currency trading etc. Stock traders trade equities or shares from companies. Option traders trade options, which enable anyone to sell or buy the right at specific routines under specific market conditions. Online futures traders an internet-based commodity traders trade contracts; contracts for items like crude oil and gas main or contracts for treasury notes and bonds. Online forex traders trade currency pairs, they're buying one currency and sell another one as outlined by exchange rate changes.
In accordance with the interval between investing of products online traders could be broadly classified directly into short-term traders and long-term investors. Usually traders with trading interval under twelve months are called short-term trader and people with trading interval several year are called long-term investors. Short-term investors, forms the majority of active traders, trade products in accordance with short-term trends. They trade products usually based on its merits. Long-term investors invest long-term goals; they are generally company/industry specialists wish to spend money on growing fields.
Short-term trading can be further classified directly into day trading, swing trading and position trading. Online daytrading is regarded as the active kind of trading. Day traders' trading interval does not exceeds 1 day. They purchase and then sell products within seconds, minutes or hours for usually small gains. Day trading eliminates overnight risks. Daytrading involves scalpers - those trade lots of shares/contracts within seconds or minutes for small per share gain, and momentum traders - trades based on the trend pattern of specific shares/contracts with in every day.
The selling and buying interval of internet swing traders range between several hours to 4 or 5 days. They, like day traders, trade shares/contracts based on slight fluctuations in price, but you are prepared to hold their position before the next day. Online swing trading involves overnight risks but have gain percentage above those of daytrading. Online position traders trade equities/contracts having an interval of days to months. They relay on long-term trends and company performances. They have got higher gain percentage far better risks than online swing traders.
In line with the strategies followed stock trading online might be classified straight into Brother-in-law style -traders seek advice from brokers or another traders, Technical trading style- traders use advanced systems to discover trading trends, Economist trading style - traders relay upon economic predictions, Scuttlebutt trading style - trading as outlined by information purchased from brokers or any other sources, Value trading style - trading as outlined by merits of individual stocks not to whole market, and Conscious trading style - blend of several of above styles to finding right opportunity.