Saturday 12 January 2013

Short Term Trading

Short Term Trading Details
Short-term trading refers to those trading strategies in stock market or futures market in which the time duration between entry and exit is within a range of few days to few weeks.
There are two main school of thoughts: day trading and trend following.
Short term trading can be very risky and unpredictable due to the volatile nature of the stock market at times. Within the time frame of a day and a week many factors can have a major effect on a stock’s price. Company news, reports, and consumer’s attitudes can all have a positive or negative effect on the stock going up or down. According to Zweig (2006), “In an article in a women’s magazine many years ago we advised the readers to buy their stocks as they bought their groceries, not as they bought their perfume” (p. 8). This means doing the research to spot the best opportunities and leaving the emotion and outside appeal out of the decision to buy or sell. Simply watching the news or reading financial statements will not prepare one to have success in the short term. By the time news comes out the markets have already responded and most of the potential gains for investors are gone. Buying or selling a stock that does not have much volume can move it up or down. Small investors have little effect but large mutual funds and hedge funds can determine the minute-to-minute pricings of stocks through supply and demand
Short Term Trading
Short Term Trading
Short Term Trading
Short Term Trading
Short Term Trading
Short Term Trading
Short Term Trading
Short Term Trading
Short Term Trading
Short Term Trading
Short Term Trading
Short Term Trading
Short Term Trading
Short Term Trading
Short Term Trading
Short Term Trading
Short Term Trading
Short Term Trading
Short Term Trading
Short Term Trading
                    

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