Online Stock Trading-Discover What Type of Trader You are to Make More Money in the Stock Market

If you are just beginning with online stock trading then you have a lot of questions for sure. One thing you must decide is how you will find the right stocks to trade. The first step now is to find out what type of trader you want to be.

You can either be a trader that invests short term or long term. Short term traders are day traders and swing traders. These people are in and out for a quick profit. Day traders do several trades a day, swing traders invest a few days or weeks before they get out. Long term traders are more like investors. They buy and hold shares for a year or much longer.

The next decision to make is how you do your research. There are technical or fundamental traders. Usually investors decide more on fundamental analysis, that means they look at the facts like company growth, earnings, management, sector outlook etc.

Technical traders do not look on fundamentals but only on charts and technical indicators. They try to find patterns and decide based on of the hundreds of different technical indicators derived from that.

There is no right or wrong approach. Both sides have success with their strategy. There is just one thing that is sure. Nobody can really predict where the market or the share prices will go. Therefore it is important to outline a clear trading plan.

A mistake many beginners do is mixing different trading styles. Either be a short term trader or an investor. Either trade based on fundamental analysis or on technical analysis. The more you mix things up the more you mess them up. And mistakes on the stock market are very expensive.

One last thing. Money is another factor. To be a daytrader you are required by law to have at least $25,000 in your trading account at all time. As an investor you can start with as little as $100 and make money.