There are many trading methods. Trading styles and techniques can also be categorized based upon Guest Postings and the purchasing/selling period. The major types of trades are categorized by the product traded. This includes stock trading (options), currency trading (commodities), and futures. Stock trading involves the trading of shares or equities in specific stock markets. Option trading includes trading options where traders have the option to buy or sale shares/contracts on specific markets, discover more.

In response to changes of exchange rates, online currency trading involves the purchase of one currency and the sale of another. Commodity and futures online trading involves contracts. You can invest in money through bonds and treasury notes, or you could buy products like crude oil or natural gas. Online trading may be divided according to the amount of time that passes between the purchase and sale of a product. Short-term trades are those with an average buy-sell gap that is less than 12 months, while long-term trades have a larger buying-sell gap.

A majority of traders online have a strategy for trading that’s shorter-term. Investors who are short-term tend to trade based on short-term price fluctuations. Long-term investors follow industry/company development rates. Most long-term traders specialize in certain industries or companies and invest in large quantities with long-term objectives. Three categories of short-term traders can be identified: Day Trading (also known by the name swing trading), Position Trading (also known by the name position trading) or Swing Trading. It is believed that day trading, as the style of trading with most volatility, is best. In Day trading the buy and sell period does not exceed one day. Day traders can purchase or sell contracts/stocks within a couple of minutes, seconds or hours. The gains tend to be small. Day trading has less risk than overnight trades, since traders are not holding options or stocks.

One day traders include: (1) scalers who are quick to buy or sell shares, contracts and other securities for small profits; (2) momentum traders who take advantage of trends by making trades in just one single day. The same as day trading, it’s an active market. Buying and selling in swing trading may last for several hours up to a few days. Swing trading uses options/contracts which are bought and sold in accordance with small price changes. The profit is similar to that of day trading. Swing Trading is a way to reduce the risk of overnight holdings. In position trading, there can be a time delay between purchase and sell. This could range anywhere from a few days to several months. A position trader online focuses on trends over the longer term, as well as industry/company performance. Trading schemes are divided into six categories: (1) the brother-inlaw style — trading according to advice given by other traders or brokers; (2) the technical style — trading with advanced systems that find historical as well as most recent trends; (3) The Economist’s Style—trading according to economic forecasts, (4) Scuttlebutt-style of trading-trading based on information obtained from brokers or others sources and (5) Consciousstyle of trader – trading by being conscious. The six main types of trading are: 1) trading according to other traders’ or brokers’ advice; 2) trading using advanced trading systems which find the latest and historical trends; 3) trading by economists or based on economic forecasts.