Different Ways to Trade or Invest in the Stock Market


Different Ways to Trade or Invest in the Stock Market

in this week’s lesson what I’d like to do is share with you the different ways or the methods that you can actually trade. I’m not going to go into every little concept or detail of how to execute these and how to be profitable in them.

I just want to show you the different varieties that you can actually put on for your trades or investments.

Trading based on Direction
The first way that you can trade is trade based on direction, when you’re trading based on direction there’s two directions that you can trade. You can trade stocks to the up side or the you can trade them to the down side.

If you trade stocks to the upside, you’re looking for a long or a bullish position, the reason they call it bullish is because bulls attack to the up side or long is you’re going to the up side and if you’re trading to the down side it’s a bearish position or typically a short position.

Because what you need to do is if you’re going to the long side maybe people understand the long direction because you buy a stock lower and you sell it at a higher price.

However, not everybody understands a bearish position or a short position, and the way that this works is you sell something at a higher price, let’s say 50 dollars per share and then you buy back at a lower price of let’s say 20 dollars per share.

So you borrowed these shares from a friend or your broker in this case and then you buy them back from market price, allowing you to make money on the difference of $30 per share.

The first way to trade is based on direction and you can trade it either to the long or bullish side or to the down side or the bearish side which is the short position.

Trading based on time
The second way that you can do trade is trade based on time and trading based on time allows you to define how big of an outlook you have and trading based on time, you can have a day trader or you have a swing trader.

Now you also have a long term investor there as well but these are the main two that in the trading community people define them as.

In the day trading world you basically buy and sell a stock within 24 hours, it’s within a day, technically it’s 6 and a half hours because a trading day lasts 6 and a half hours.

A swing trader can hold a stock for multiple days, it could be 1 to 14 days, it could even be multiple months, when you’re holding a stock for multiple months.

Posted at: http://tradersfly.com/2016/03/ways-to-trade-in-the-stock-market/



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  1. Hey Sasha, enjoy your videos. I like trading (Paper trading for now, but have a history of doing well). My question is, I swing trade 1-3 week, however, I don't use indicators. Am I naïve to believe it's okay to trade without tools? I will use lines to show support and resistance and direction, but that's about it. For the most part, I just read  OHLC Bars to trade. I'm getting familiar with understanding the charts this way. Of course, I compare monthly charts/ weekly charts etc.. Thanks

  2. Thank You Sasha for yet another powerful video. It's like you covered an entire semester in under 15 minutes. You explain the concepts with such clarity. You are an amazing teacher and I am gonna purchase your recommended books and keep learning under you.

  3. You're an awesome teacher, I'm so glad I came across this video (subscribed), I've been looking around and ivefinally found someone who can break down the rules. I'm just getting into trading, I'm officially a long-term listener.

  4. Awesome videoes!
    I know it hasn't so much to do with this video, but regarding daytrading like in S&P500, where you can't see the volume, and I know its a big part of your trading strategy, do you use other strategies then?

  5. As always, love the calm approach you have. Maybe the best approach one could have for the stock market. Great advice! Thanks for sharing;)!

  6. I've only been doing long so far, but short seems like a great idea now too. This vid actually made me see that, I "get it" now. So up's and downs could both be profitable, nice.

  7. Hi Sasha, great video but it lead me to a question. how about trading on a range chart, will it make any difference, I know few people trade like that and have good results. your thoughts?

  8. Great video as always, I will buy your book(hopefully I can order internationally). I just have one question, how does one generate profit from Short-term/bearish investing? I know you explained it on the video but I couldn't really understand it, it just seems as if you make a loss of $30 rather than profit….

  9. Drawing board effect: he is right handed, not left handed. Video is just flipped. So we can see the what he has written as left to right


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