EXANTE and SEC: Types of Stock Trading

If you are interested in stock trading, you need to follow this EXANTE broker review. Let’s see what you need to expect from this potentially lucrative undertaking.

Newbies who begin to learn about such a complex and interesting thing as stock trading have to face numerous questions. Many of them begin to search on the Internet for tips on which instruments to trade and so on, or immediately opt for ready-made strategies. Due to the poor knowledge and zero experience, a novice trader is unable to discern the grain of truth from the never-ending stream of noise and a great abundance of prejudices.

A great number of people come to the stock market and begin to speculate, increasing the commission income of brokers. They often buy shares of companies they know nothing about. The most ambitious ones immediately climb to the derivatives market where a lot of traps are waiting for them. So, instead of immediately looking for a magic instrument that copies someone’s dubious deals or strategies, the beginner is doomed to fail if he lacks a complete understanding of stock trading. Now let’s cycle through the most popular types of stock trading. By the way, you can do all of this stuff with the EXANTE broker.

Scalping

Scalping happens to be one of the most popular trading styles. For example, if you make 10-20 transactions within the trading session or more, we can say with 100% confidence that you are a scalper.

A typical feature of this trading strategy is the enormous load on the nervous system of the trader and the need to be virtually glued to the computer monitor. It is also worth noting that now many scalping functions are delegated to robots that are completely immune to emotions and capable of opening and closing trading positions within tenths of a second. The factors described above make the work of the scalper incredibly complex and nervous, while the profit from the transaction can be measured in a couple of pips. Are you sure you are ready to sit from morning till, chasing the whole trading session, waiting for news or a successful pattern on the chart?

Intraday trading

It’s no less time-consuming and intense type of stock trading. The difference of this approach from scalping is the number of transactions. As a rule, intraday traders make no more than 10 transactions during the trading session. Most followers of this method turn out to be true fans of technical analysis, for whom trading on the stock exchange is narrowed down to searching for signals to enter or exit the market. So, if you like this way of stock trading, you are bound to get a deep understanding of technical analysis. This effective trading instrument has already helped many smart people to earn their living by trading stocks on a regular basis.

Trading between days

The given trading style is characterized by a small number of transactions per week: from 1 per day to 1 per week. The trading method suggests getting dividends from various shares. In this case, traders are guided by the release of news on a particular company. This trading style is ideally suited for traders who already have decent trading experience and who do not have enough time or desire to make a lot of transactions.

Investing

That’s the last type of stock trading. This approach includes short-term investments (from three months to one year), medium-term (from six months to two to three years) and long-term investments (for a period of more than three years). The key to this type of trading is the high-quality application of fundamental analysis. Here, entry points are often waited from a few weeks to several years, depending on the strategy and instruments used. The methods mentioned above have much in common with gambling. Investment is a completely different approach. Investing suggests deep analysis and digging into the fundamentals of economics.

We should note that many professional traders combine all these popular trading styles mentioned above. It’s no problem holding one trading position for a year while making tens of intraday transactions every day.

Try your hand at stock trading with EXANTE   

With the EXANTE brokerage company, you can try all these styles and successfully combine them if you wish. The broker has no legal issues and this fact has been proved by the SEC. If you decide to work with this broker, you can choose from 150,000 assets and trade them from a single account.

Read more about Exante

 

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