Trading & Investing

Trading - Buying and selling stocks frequently.

Investing - Buying and holding stocks.This goes upto years and investors gets dividend, split stocks.

Type of traders.

• Position Trader – positions are held for months.
• Swing Trader – positions are held from days to weeks.
• Day Trader – positions are held throughout the day only with no overnight positions.
• Scalp Trader – positions are held for seconds to minutes with no overnight positions.

There are two types of  analysis that can be done before investing/trading.

1. Fundamental

2.Technical.

 

For fundamental analysis, you look at the balance sheet, EPS, P/E etc of a stock and make judgement.

Within technical analysis, people use

1. price action

2. Indicators

3. Combination of both.

Trading solely based on Indicators is risky. We can use them for confirmation.