As Investors gain knowledge and expertise, there view on the market is likely to change and hence their investing style and strategy changes. Buying and holding the investment on the belief that a good investment will be profitable in the long term. This means ignoring day-to-day market fluctuations.
An Active Trader, on the other hand, looks for the profit potential in the market's temporary trends predicting where it will go in the near future. Some look for trends within a span of few months, some within a few weeks and some within a few hours. A trader analyzing a shorter time frame will be more active, executing more trades.
An Active Trader, on the other hand, looks for the profit potential in the market's temporary trends predicting where it will go in the near future. Some look for trends within a span of few months, some within a few weeks and some within a few hours. A trader analyzing a shorter time frame will be more active, executing more trades.
An Active Trader will strive to buy and sell at the two extremes of a trend within a given time frame. When buying a stock may try to buy it at the lowest point possible and then sell it when there are signs that it has hit a high profit. On the other hand, if the prices falls then trader can end up with losses.The more the trader strives to buy and sell at the extremes, the more aggressive and risky is his or her strategy.
The trader will keep an eye out for any signs that the security is about to take a surprising turn in an undesirable direction. When these signs occur, the trader knows that it is time to exit the investment and seek profits elsewhere.
If you are new to trading, we provide trading tips, strategies, calls and much more for free of service.
The trader will keep an eye out for any signs that the security is about to take a surprising turn in an undesirable direction. When these signs occur, the trader knows that it is time to exit the investment and seek profits elsewhere.
If you are new to trading, we provide trading tips, strategies, calls and much more for free of service.