Four Different Styles Used for Trading Stocks
While many investors try to emulate “buy and hold” investors like Warren Buffett, not everyone has the conviction or the patience to wait out positions over years or decades.
For active investors in the market, it’s pretty common to see switching in and out of positions – sometimes over the course of months to years, and sometimes on a much more frequent basis.
Trading Stocks: Examining Four Styles
Today’s infographic comes to us from StocksToTrade and it highlights key differences between four trading styles, along with the methods frequently used to identify each trade.
The styles range from having holding periods of months or years, all the way down to mere minutes!
As these holding timeframes get smaller, the focus typically shifts from evaluating a stock’s fundamentals to gauging short-term technical indicators.
1. Position Trading
Position traders look closely at a company’s fundamentals in order to accumulate sizable positions that they hold for periods of months or years. This could be done using growth investing or value investing methodologies. Meanwhile, technical analysis can be used to time each individual trade.
2. Swing Trading
Swing traders go with the flow. They aim to capture the gains of a stock (or options) as they attain short-term momentum in the market. This can be achieved by having a watch list of many interesting stocks, and constantly evaluating technical indicators until an opportunity is spotted.
3. Day Trading
The notorious day trader is usually glued to his or her computer screen, trading stocks throughout the course of a day. It’s a full-time job not meant for the faint of heart; however, there are people out there who have developed very effective strategies as well as the work ethic to do it strategically.
4. Scalp Trading
In scalp trading, it can be said that small profits add up. The goal here: to sell every time a profit window appears, and to do so many, many times!
This usually involves thousands of trades in a year and access to a live feed and direct-access broker. Scalp trading also requires a strict exit strategy, as any whiff could erase many previous gains.
An Investor’s Guide to Copper in 3 Charts
Explore three key insights into the future of the copper market, from soaring demand to potential supply constraints.
An Investor’s Guide to Copper
Copper is the world’s third-most utilized industrial metal and the linchpin of many clean energy technologies. It forms the vital connections in our electricity networks, grid storage systems, and electric vehicles.
In this graphic, sponsored by iShares, we dig into the forces that are set to shape the future of the copper landscape.
How Much Copper Do We Need?
Copper is poised to experience a remarkable 54% surge in demand from 2022 to 2050.
Here’s a breakdown of the expected demand for copper across clean energy technologies.
|Technology||2022 (kt)||2050P (kt)|
|Other low emissions power generation||93.7||142.2|
|Grid battery storage||24.6||665.2|
Copper is vital in renewable energy systems such as wind turbines, solar panels, and electric vehicle batteries because of its high electrical conductivity and durability.
It ensures the effective transmission of electricity and heat, enhancing the overall performance and sustainability of these technologies.
The rising demand for copper in the clean energy sector underscores its critical role in the transition to a greener and more sustainable future.
When Will Copper Demand Exceed Supply?
The burgeoning demand for copper has set the stage for looming supply challenges with a 22% gap predicted by 2031.
Given this metal’s pivotal role in clean energy and technological advancements, innovative mining and processing technologies could hold the key to boosting copper production and meeting the needs of a net-zero future.
Investing in Copper for a Prosperous Future
Investors looking for copper exposure may want to consider an ETF that tracks an index that offers access to companies focused on the exploration and mining of copper.
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