Nowadays, everything is done online, and that includes trading. Something that was traditionally inaccessible to the average Joe is now available to just about anyone, therefore. However, this doesn’t mean that everybody is also good at doing it. This is why Online Trading Academy reviews popular trading styles. They hope that, in so doing, more people can also become successful when they trade online.
Online Trading Academy Reviews Styles
There are numerous different trading options around. This includes Forex, commodity, futures, options, stocks, and so on. Stocks are shares in a company, options allow investors to buy and sell at specific times, futures and commodities are about contracts for things like gas, crude oil, or treasury bonds. Forex trades work with currencies. Each is wholly different from the next, in other words.
Those who trade online can broadly be categorized as short term, in which case they are traders, or long term, in which case they are investors. If the interval between buying and selling is no more than 12 months, they are traders. The vast majority of people who trade is classified as traders, rather than investors. They want to buy and sell as quickly and earn the most money. Investors tend to have long term goals and they look at fields in which they expect significant future growth. More often than not, therefore, they are companies and other experts or specialists.
Short term traders, meanwhile, exist in various categories. Those include:
- Day traders, who are the most active. They buy and sell within no more than a 24 hour period. Indeed, often, there are just a few hours, sometimes even just minutes or seconds. The gains are small, but they are regular and there is no overnight risk to contend with. Day traders are also known as scalpers or momentum traders.
- Swing traders, whereby the interval is still usually only a few hours, but it can go up to as much as a week. Like the day traders, they focus on small price fluctuations, but they are willing to take on an overnight risk if they think it will benefit them. The risk is higher, therefore, but so is the potential gain percentage.
- Position traders, who tend to focus on contracts and equities and will hold for a few days or even months. They focus on company performances and long term trends. Their gain percentage is higher, but so is their risk.
Within this, there are even more classifications, which focus on the strategies that the online traders follow. The most popular include:
- The brother in law style, whereby other traders and brokers provide advice to each other.
- The technical style, whereby advanced strategic and computerized systems are used to find new trends.
- The economist style, whereby economic predictions and strategies are used.
- The scuttlebutt style, whereby information is extracted from sources such as brokers.
- The value trading style, whereby the focus is not on the entire market but rather on the individual stocks.
- The conscious style, which combines multiple other styles in order to spot the greatest opportunities.