Trader is defined as someone who buys and sells financial instruments such as stocks, bonds, commodities and derivative instruments. A trader differs from an investor has a greater prospect of parliamentary and who watches the economic fundamentals of the company invest in. On the other hand, a trader are more inclined to speculate about the company using technical analysis etc.
What is the difference between fundamental and technical analysis?
The fundamental analysis of investment will be evaluated on the basis of the relationship between the current value of the company securities and factors such as the State of the economy, industry trends, the company management, employee practices and programs, etc. In technical analysis of investment will be evaluated on the assumption that the future value guarantee may be predicted by analyzing the past performance of the stock and the market as a whole.
Why investors follow fundamental analysis vs. traders follow technical analysis?
The biggest difference between an Investor and a trader is the time horizon patted inside and outside of a financial instrument.Investors have entrusted to the company and hence they identify an appropriate inventory using fundamental analysis; Merchants want to benefit from the activities resulting in a shorter time frame and technical analysis provides a good way to identify the immediate future movements using emotion, recurring value patterns etc.
What are different trading styles?
Traders aims to become a smaller percentage of returns and wished to reiterate that many times. the following are the different style based on the time-frames:
Scalp Trading-a style of transactions designed to capitalize on small movements
Day Trading-a trading day is a location started and closed out the same trading day
Swing Trading-the main difference between a trade swing and a trading day is the length in exploitation of the open position, usually swing traders will hold the open position (s) 2-5 days
Position Trading-the main difference between a seat and a swing trade is that position traders would normally have a longer time horizon than swing traders usually 5-50 days
Synopsis:
Scalp Traders make more amount of transactions carried out with the least risk/return per trade. Position traders may not the least amount of distribution and tend to have the highest risk/return per trade.
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