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Liquidity, working capital, acid test |
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Operations, products, market position |
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This style requires much attention to detail, concentrated research, and a long learning curve. Patience is rewarded. Many of you are already long-term investors in mutual funds, managed accounts, and retirement funds. |
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This is a variation on the long-term investor. The time horizon is shorter: usually one week to about one year. The entry decisions are often similar to those of the long-term investor, but the exits are most often based on more immediate market conditions such as changes in market indexes or targeted price levels being reached. This style requires the attention to fundamentals of the long-term investor coupled with the ability to conduct sophisticated technical analysis. |
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This trader seeks ''pivot points" in the marketgaps, breakouts, and reversalswith a one-day to five-day time horizon. Trades chosen have proven, high-probability chart patterns. |
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The educated swing trader enjoys a high percentage of winning trades because one's chart patterns have been back-tested and their winning percentages are known. One's risk parameters are highly defined. The swing trader is an aggressive user of trading stops. |
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This style is especially well-suited for online trading because |
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it is the easiest of all styles to learn, due to the fact that the underlying market psychology of chart patterns is easy to understand. |
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it is fun, and it can be very profitable since the educated swing trader enjoys a high percentage of winning trades. |
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it is the easiest to manage in terms of time commitment. The disciplined swing trader can trade as actively, or as sporadically, as one chooses without detriment to one's results. |
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education and practice can really pay off. |
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