Types of trading basis

What are the different basis for trading? I know trading based on Fundamental, Technical and Quantitative approach. What others forms of trading is there?

  • Trading based on news (news of acquisition, rumours of liquor ban in a state etc.)
  • Trading based on major events (e.g. budget, Federal Reserve/RBI meeting etc.)
  • Momentum trading (going long/short on the stocks/sectors where clear momentum is visible)
  • Scalping (small profits per-trade but more trades)
  • Arbitrage trading
  • High frequency trading (not for retail traders though)

I am sure there are a lot more but these are the common ones.

Cheers,
~Neha (www.VRDNation.com)

3 Likes

@Neha_Raghuraman Have covered majority & Most popular Types I would like to continue…
Types of Traders

Fear Trading - In this type Trader is in fear of losing money.

Gamble Trading - In this type Trader Gamble with their money If trade Goes right they make money if Goes wrong they Lose Money.

Newbie Trading - In this type Trader Comes in Trading world to learn Trading 90% of them lose good amount of money Untill They realise It’s not meant for Them.

Whatever type of Trader you are no matter but Thing is if Traders have come into Trading life to become rich in short spam of time then Trading is not meant for those.

Trading is a Lifestyle which grows over time the more passionate you are about learning the more you will make in this market.

This is not the place for greedy ones They will not survive in Long Run.

3 Likes

Nicely said…I will add one more to this “alternative list”

  • Desperate Trading- where one loses some money initially but since they don’t have the mental discipline to accept a small loss, enters into a series of bad trades to “recover” that money back. Needless to say, they don’t survive for too long
  • Revenge Trading: When a trader makes up his mind that a particular script will have to go down (or up) and inspite of the market telling them otherwise, they keep betting more and more to satisfy their ego that they were right. Again, market eats these guys up everyday
4 Likes