There are many financial instruments that you can trade. It includes stocks, debt securities, commodities, and many more. You can trade these with help of tools provided by the trading platform of your choice.
Once you understand the basics of trading in the market and how the trading platforms work, you are ready to trade. However, you may face a dilemma in what strategy to use to trade.
Let’s first learn the few basic trading approaches using which you can choose what fits you well.
Day trade (intraday trading):
It is when you buy and sell the securities on the same day. This is a short-term approach to making a quick profit. It requires your full attention to market movements to make a profit or you can even lose money. The Trading Platform provides you with tools to help with quick decision-making.
Swing trade:
It is when the trading window for the day trading is extended for 1-5 days.
Option trading:
It is when one can speculate on the move of securities and have a choice whether to buy or sell at a particular price and condition. This trading provides them a choice with any obligation to finish the trade. One requires thorough knowledge of put, call, margin, and premium to make a good profit.
Position trading:
Here the trader follows the trend and identifies the correct entry and exit point to make more profit. They know when to buy stocks hold them and then sell them.
Long-term trading:
It is a long-term approach where you buy and hold the share for gaining long-term value.
Note that these are not the only approaches to trade and there are many more options available. All these approaches have their own pros and cons. You should know well about them and then choose the best option that suits your needs.