In the stock market, there are different types of trading opportunities, it may be intraday trading, positional trading, and swing trading, and investments. Let's discuss the types of trading in brief.
1. Intraday trading means day trading, in which we buy and sell the stocks within a day. It is short term and hardly stands for few minutes to few hours. In intraday trading, you have to just catch the movement of stock and take the position, which makes intraday trading a high-risk game.
2. Positional trading refers to the trading in which we take the position and holds for months to few years. It is less risky than intraday trading. Swing trading is a little bit different from positional trading, in swing trading we hold our position for a few days, not months. In swing trading, we don't hold our position for a long period, it's just a matter of a few days. Generally, both are the same the only difference is the time frame.
3. Investment is a different thing from trading. In investments, we just buy the stocks of the company and hold for a long period like 5 to 10 years or more. Investment is long term and in investment, your money works for you while you are busy with your own life. Good investments give good returns rather than savings like fixed deposits or something else.
In trading, we require technical skills and in investments, we require fundamental skills. In technical skills, you have to learn candlesticks charts, price action, indicators, etc. In fundamental skills you need to learn to read the balance sheet of the company, cash flow statement, profit & loss, ratios, etc.
If you want to learn both skills then IFM TRADING ACADEMY is the best option for you because we provide the full course of the stock market from the basic level to advance level in which we cover every important aspect of the stock market. Contact us for more information.