Position Trader

Some do it for the long-term benefits, hoping to be able to retire well and live a comfortable life.  This approach is not bad at all.  Even though the stock market has seen its fair share of crashes; the crash in the 1920’s, again in the 1980’s and most recently towards the end of 2008, stocks have always been a great investment, making fantastic overall gains over this period of time. These people, who buy stock for months, and even years or decades, are known as position trader, or long term investors.

Swing Trader

The swing trader is much shorter term, although at times not by much. A swing trader can buy and hold a stock for a week, a few weeks or even around the month mark. This is a good, and common way to trade for those who are in it for the thrill, but don’t want to buy and sell anymore than that.

Day Trader

Lastly there are day traders. These traders are in it for the thrill, but at the same time will take it very serious, just like any business, because for some their entire livelihood rests on their ability to be able to take more out of the market than gets taken from them. Day traders have to be quick when they buy stock, and will often leave positions open for an entire day, but can close them as quick as within a few seconds of having opened them, depending on the volatility of the market.