| When people choose to begin investing in the stock | | | | the shorter they hold the stock, the less time the |
| market, there are a few ways they can invest. | | | | price has to go down. Likewise the gains that are to |
| Moreover there are several types of investors that | | | | be had are also minimal, so the profits grow very |
| play the market daily. Here are some of them: | | | | slowly. |
| Day Traders - Day Traders are those who buy and | | | | Long-term Traders - Long-term traders are in it for |
| sell various types of stocks, currencies, and futures | | | | the long haul. They have a long-term strategy and |
| within the same day. There are two types of day | | | | aren't in a rush to make a quick dollar. There are |
| traders: the institutional day trader and a retail day | | | | several types of long-term traders and for those |
| trader. Institutional traders work for financial | | | | that are looking to make their investments actual |
| institutions. These types of traders usually have more | | | | investments, they understand that the prices will rise |
| resources and tools than retail traders with | | | | & fall and these stocks will ride the waves of the |
| connections to high-tech software, direct lines to | | | | stock market for some time. |
| data centers, and more. Retail day traders work on | | | | There are advantages and disadvantages to all three |
| their own or with a few other traders. Most of the | | | | types of stock market trading. Understanding which |
| trading done is with their own money and capital. | | | | one is comfortable for you is the most important |
| Short-term Traders - Short-term traders hold onto | | | | decision you will have to make when you enter the |
| their stocks for as little as minutes at a time. | | | | world of the stock market. |
| Short-term trading minimizes risk due to the fact that | | | | |