Trade Noun: The business of buying or selling commodities; commerce.
Verb: To engage in buying or selling for profit.
Adjective: Of or relating to trade or commerce.
Alright, alright you get the point. American Heritage Dictionary made it loud and clear for you. Trading and traders, though spelt differently the word alone gives me the chills, What do you do?
I m a trader.
Eh, shouldn t hold them accountable for whosoever made that name up, however convenient it may be. The trade corporations have lived and thrived in the productions. Some succeed, while others fail horribly. There is a passion that trails along this forte, and in the beginning stages the drive seems to derive from an implanted thought of thinking that you only have one day to live so you must prevail. Once established you can slither into other facets of trading that can propel you into new realms yet unknown. Finding your niche is where it s at. Communication is the key to its success, and determination sits on the shoulders like the good and bad angel, aiding or debilitating in the victory.
Basic types of trading styles
Develop a trading plan seems to be the ideal phrase in browsing through trading websites, giving you the breakdowns of how great their system is or which would be best for an individual or the mass. Well come to find out there are a lot of trading styles, sectioned off into categories and then those categories are sprouted out to mini categories. Let s keep it simple and knowledgeable shall we.
Automated Trade: This sounds uncomplicated enough; carrying out multiple entries and exits, monitoring markets, finding profitable targets, trailing stops and protective stops, and completing the details of orders without any need for manual, a person s fingers, to type it in. So, basically a computer that does everything for you.
Carry Trade: For those who are not fully aware of carry trading, this system is based on currency of the foreign exchange. Well the stability of that; if there is such a thing. Investors borrow low or high yielding currencies; retracting when the global currency is on the short. What is not so great about this section of trading is the investors may have to pay up, by this I am referring to the foreign exchange rates inconsistency. Since the exchange rate varies the investor might have to pay back with less valuable money on a more expensive bill.
Day Trade: The buying and selling of various financial instruments such as stock, options and futures (futures huh, that stung a little bit). That is the way of day trade. Day traders (sounds like a human killing clan, instead of vampires it s us) branch off into diverse specialties but their main goal is to make a profit off the difference between the buying and selling price of the item. The significant fad that stands out about day traders amongst their peers, is not working overnight shifts or when the market is closed; hence the term day trade.
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