I will refer it to trading duration ( Intraday, scalping, swing, positional).
TRADING STYLE:PATIENCE & DISCIPLINE two thing you have to maintain while you are investing your money into STOCK MARKET.
VOLUME:Never use your all Margin in One Scrip.
CAPITAL:USE ALWAYS MAXIMUM 5%-6% of your capital while you are INVESTING. You can use SMALL CAP, MID CAP or LARGE CAP
TIME:IT’S ALL UP TO YOU. You can go for SHORT TERM, MID TERM & LONG TERM.
INDICATORS:IF HAVE KNOWLEDGE ABOUT TRADING ANALYSIS you can use.
Generally speaking, every individual has his on style/habits right?..
Pertaining to trading style. Usually traders have their own methods/ techniques they use for trading. Trading in one profession where there are no set rules on how one should trade/ invest. Some traders are heavy on fundamental analysis while some are firm believers of technical analysis. Some traders like to take more risk and wage a higher percentage of their capital while another trader may take a conservative approach. How you plan to trade, what strategies and methods you apply, constitutes your ‘trading style’.
There are various styles/types of trading based on different parameters
1) Based on analysis type
-Fundamental (mostly investors) who buy/sell based on fundamental criteria.
-Technical (mostly traders) who buy/sell based on chart analysis. In technical while many use indicators there is group of traders who does not use any indicator. They are pure Price Action traders.
-Mixed who analyze companies based on fundamental criteria and then use charts to fine tune entries and exits.
2) Based on duration
-Scalpers - minimal holding time usually in seconds to minutes. They take lots of trades for small price movements and close out very quickly. Their win/loss ratio is very high but can have big losers.
-Day traders - holding time minutes to hours but close out positions at end of day and do not take over night risk.
-Swing traders - holding time hours to days. Enter/exit on change in swing direction based on intraday charts mostly 60min. The try to hold position for entire move.
-Position traders - holding time days to weeks. Enter exit based on reversal signs on dailly/weekly charts.
Again here there could be traders who use multiple styles e.g. scalp/day trade in Futures/Currency/Commodities. while Swing/Position Trade in Cash Market
3) Discretionary V/S Mechanical
-Discretionary traders who take subjective decision based on their judgement and experience. Most successful traders would fall into this category.
-Mechanical traders who trade completely objectively and do not let their emotions interfere with trading. They would mostly trade back tested mechanical systems and follow the rules strictly.
Again here there could be traders who do Discretionary day trading while have mechanical systems for position trading.
4) Based on market traded - there are traders who trade only Commodity while others trade only Futures and still others who would trade Equity only. Even in each main market there would be sub categories like in Commodity there would be some who only trade base metals while other precious metals and other trade agri commodities.
5) Based on Bias - There are some traders who will only Short and keep looking for Shorting opportunities no matter what. While others will only look for long.
6) With Trend/Counter Trend traders.
-With Trend Traders will look at trend in higher time frame and then take trades in the direction of trend in smaller time frames. They will miss the tops and bottom but will be able to catch middle of the trend.They will be active during trending market while step aside in trading ranges.
-Counter Trend Trader also known as Contrarians who will trade against trend. They will be get in early in a new trend at cost of several failures. Also in trading ranges they will be trading from both sides known as Fading.
7) Based on risk appetite
-Conservative -will wait for confirmation of signals, entries. They will miss some initial move but their success ratio will be higher.
-Aggressive -will enter anticipating signals like when market approaches support/resistance etc. They will enter early but success ratio will be slight lower since there would be many false signals.
One could be mixture of one or more of the above or could be exclusively one particular type of trader. It has match one's overall personality.
Thank you Salman
nice one Ajay
Thank you Salman