Learning the Fine Art of Trading in Your typical Stock Market

penny stock

Trading in shares has been the basis of market movement and also provides the fundamentals of an economy where ownership of a company is traded publicly. Stock brokers today are the main force behind market evaluation and the worth of any particular company. Though stock trading is a generic term applied to the stock broking focusing on penny stock picks, there are many types of stock traders and equally different types of stock trading.

Types of share traders

As mentioned before, there are different kinds of traders who are known for their activities and are named accordingly. We have our scalpers who are known to make dozens to hundreds of trades in a day. Their objective is to make a small profit from each trade they make, also known as scalping. There are traders who will keep an eye on the rise and fall of the stocks and make their trade after they have analysed the movement of a particular stock on a particular day. They are called technical traders. The momentum traders on the other hand, just move in with the high moving stocks of the day and are aptly named as momentum traders. Alongside these guys, there exist traders who analyse the performance of a company, go through reports, and anticipate falls and rises based on earnings and performance of a company. They are called fundamental traders.

penny stock

Types of trading

The day traders do not hold to a stock for more than a day. Trend traders will hold on to a stock for weeks to months. Between them sits the swing traders who depending on movement of the stock may hold on or sell a share from a few days to a few months. The swing traders decide to buy or sell based on the market oscillations during their holding time.