Types of trading--Adv and Disadv

#11
Suhas_79 said:
hi,

what is meant by scapling. Is it type of trading or what?
Can anyone explain?

Thanks in advance.
Hi Suhas,

Basically,Scalping is a type of daytrading.Day traders buy and sell stocks throughout the day trying to earn quick profits. A day trader will hold a stock from a few seconds to a few hours, but will always sell all of those stocks before the close of the day. Therefore at the end of the day,the day trader will not own any positions,so there is no overnight risk. The objective of day trading is to quickly get in and out of any particular stock for a profit anywhere from a few cents to several points per share on an intra-day basis.

Day trading can be subdivided into a number of styles, including:

Scalpers: Scalpers buy and sell a large number of stocks within seconds or minutes. The objective is to earn a small profit on each transaction while minimizing the risk. Basically they look at the 1 min and 5 min charts,and trend is assessed with the 15min charts.Sometimes they can go up to 100trades a day.

Momentum Traders: Momentum day traders look at the 60 min charts and daily charts for assessing trend,and trade using the 15 and 30min charts.They take lesser trades per day but try to stay with the trend longer.

But by the end of the day,the daytrader,be it scalper or momentum day trader is out of all positions.

Phoenix:cool:
 

avinash

Active Member
#13
phoenix said:
Hi Suhas,

Basically,Scalping is a type of daytrading.Day traders buy and sell stocks throughout the day trying to earn quick profits. A day trader will hold a stock from a few seconds to a few hours, but will always sell all of those stocks before the close of the day. Therefore at the end of the day,the day trader will not own any positions,so there is no overnight risk. The objective of day trading is to quickly get in and out of any particular stock for a profit anywhere from a few cents to several points per share on an intra-day basis.

Day trading can be subdivided into a number of styles, including:

Scalpers: Scalpers buy and sell a large number of stocks within seconds or minutes. The objective is to earn a small profit on each transaction while minimizing the risk. Basically they look at the 1 min and 5 min charts,and trend is assessed with the 15min charts.Sometimes they can go up to 100trades a day.

Momentum Traders: Momentum day traders look at the 60 min charts and daily charts for assessing trend,and trade using the 15 and 30min charts.They take lesser trades per day but try to stay with the trend longer.

But by the end of the day,the daytrader,be it scalper or momentum day trader is out of all positions.

Phoenix:cool:
Thanks Phoenix!

Avinash
 

bunti_k23

Well-Known Member
#16
Nice thread bro...
 

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