Short term
Short term trading is an integral part of delivery trading.Trading of shares done from three days to six months is called short term.It depends upon Company news, reports, consumer’s attitudes and results.It is very risky and unpredictable due to the volatility of stock markets.
It is possible on future and options also in which the time duration is a few days to weeks.
The trend of the stock is very important in short term trading.Chart pattern, Exponential Moving Average (EMA), Simple Moving Average (SMA), Moving Average Convergence-Divergence (MACD) and Relative Strength Index (RSI) have important role in short term trading.Pivot points, Camarilla levels, fibonacci retracement levels, fibonacci pivot levels, wave levels are also used to predict the short term trend.After realizing the trend one can buy or sell stocks.
Mid term
Mid term or medium term indicates intermediate investment.Analysts and traders have different opinion about the period of mid term.One intraday trader who holds the stocks for three to four weeks may consider this period as mid term.One long term trader who hold the stock for one to three years may consider this period as mid term.Most analysts and traders are of the view that share trading done from six months to less than one year is mid-term.Mid-term trading is also based on news and company performance.One may do the medium term stock selection on the basis of momentum and the fundamentals of the stocks.One may enter the trade after a break out above resistance or a break down below support according to his own trading system.As on Short term trading Chart patterns, Moving averages like EMA and SMA, MACD, RSI and other technical levels affect the trend.
Long-term
Usually share trading done after one year is called long term trading or long term investing.Company's fundamentals, performance, news and market conditions affect long term trading.Buying under priced stocks with strong fundamentals (Value investing) work in long term trading.In long term trading small-cap and mid-cap stocks offer high profits than large-cap stocks.It is because small cap and med cap stocks earnings can grow easily than large caps.Growth rate and estimated returns are great concern while purchasing shares on a long term basis.
Short term trading is an integral part of delivery trading.Trading of shares done from three days to six months is called short term.It depends upon Company news, reports, consumer’s attitudes and results.It is very risky and unpredictable due to the volatility of stock markets.
It is possible on future and options also in which the time duration is a few days to weeks.
The trend of the stock is very important in short term trading.Chart pattern, Exponential Moving Average (EMA), Simple Moving Average (SMA), Moving Average Convergence-Divergence (MACD) and Relative Strength Index (RSI) have important role in short term trading.Pivot points, Camarilla levels, fibonacci retracement levels, fibonacci pivot levels, wave levels are also used to predict the short term trend.After realizing the trend one can buy or sell stocks.
Mid term
Mid term or medium term indicates intermediate investment.Analysts and traders have different opinion about the period of mid term.One intraday trader who holds the stocks for three to four weeks may consider this period as mid term.One long term trader who hold the stock for one to three years may consider this period as mid term.Most analysts and traders are of the view that share trading done from six months to less than one year is mid-term.Mid-term trading is also based on news and company performance.One may do the medium term stock selection on the basis of momentum and the fundamentals of the stocks.One may enter the trade after a break out above resistance or a break down below support according to his own trading system.As on Short term trading Chart patterns, Moving averages like EMA and SMA, MACD, RSI and other technical levels affect the trend.
Long-term
Usually share trading done after one year is called long term trading or long term investing.Company's fundamentals, performance, news and market conditions affect long term trading.Buying under priced stocks with strong fundamentals (Value investing) work in long term trading.In long term trading small-cap and mid-cap stocks offer high profits than large-cap stocks.It is because small cap and med cap stocks earnings can grow easily than large caps.Growth rate and estimated returns are great concern while purchasing shares on a long term basis.
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