What is your Trading Style? Pick one and explain why it fits you best.
DayTrading
A stock trader who holds positions for a very short time (from minutes to hours) and makes numerous trades each day. Most trades are entered and closed out within the same day.
Swing Trading
A style of trading that attempts to capture gains in a stock within one to four days.
To find situations in which a stock has this extraordinary potential to move in such a short time frame, the trader must act quickly. This is mainly used by at-home and day traders. Large institutions trade in sizes too big to move in and out of stocks quickly. The individual trader is able to exploit the short-term stock movements without the competition of major traders. Swing traders use technical analysis to look for stocks with short-term price momentum. These traders aren't interested in the fundamental or intrinsic value of stocks but rather in their price trends and patterns.
Position Trading
A commodity trader who either buys or sells contracts and holds them for an extended period of time, as distinguished from a day trader, who will normally initiate and offset a futures position within a single trading session.
It is a style of trading in which the expected holding period is between a few weeks to as several months.
Position trading is not the same as buy and hold investing. Rather it is like most kinds of short-term trading, just with longer time horizons and holding periods. Positions traders take both long and short positions.
Middle-Term Trading
It is longer than position trading. A trader of this style may hold the stocks or contracts for a period which lasts for many months to several years. They will ignore any short-term influence of the price too.
Long-Term Investment
It's the purchase of a financial product or other item of value with an expectation of favorable future returns. In general terms, investment means the use money in the hope of making more money.
People involved in long-term trading usually buy and sell stocks based on their fundamental values rather than technical information. The influence of the price of the stock or instrument doesn't affect their purchasing decision either.
Buy-and-Hold Investment
An investment strategy in which stocks are bought and then held for a long period, regardless of the market's fluctuations. The buy and hold approach to investing in stocks rests upon the assumption that in the very long term (over the course of, say, 10 or 20 years) stock prices will go up, but the average investor doesn't know what will happen tomorrow. Historical data from the past 50 years supports this claim. The logic behind the idea is that in a capitalist society the economy will keep expanding, so profits will keep growing and both stock prices and stock dividends will increase as a result. There may be short term fluctuations, due to business cycles or rising inflation, but in the long term these will be smoothed out and the market as a whole will rise. Two additional benefits to the buy and hold strategy are that trading commissions can be reduced and taxes can be reduced or deferred by buying and selling less often and holding longer.
I hope no one will pick the above so-called strategy.
