Various trading styles in stock market

  

1. Positional Trading Style: This is a long term trading style for which a stock market instrument is taken for few months or years for good gains of 50% to 100% or more.

2. Swing Trading Style: This is a short term trading style for which a stock market instrument is taken for few days or weeks for expected profit of 5% to 10% more more.

3. Day Trading Style: This is also known as intraday trading for which a stock market instrument is taken for a day (no carry forward position) for 1% to 2% or more gains.

4. Scalp Trading Style: This is an extremely short term based trading style for which a stock market instrument is taken for few seconds or minutes to get good gains.

Options trader's perception in positional trading

1. Long position buildup:

Establishing a long position indicates that more investors are expecting price increases and are holding long positions. This can be for a variety of reasons, including stocks that are in an oversold area, some good news about the stocks, or some positive global leads.

2. Short accumulation/buildup:

Short accumulation shows that more investors are expecting interest rates to fall and are making short bets. There are many reasons for this, such as stocks are in an oversold area or stocks have bad news.

3. Long unwinding/closing:

When a long position is closed, people start to sell a long position because some news or goals have been achieved. The reasons for closing a position for a long time may be different, but the result is the same.

4. Short covering:

Traders start buying stocks that they have sold before to close their positions or to exit the position with profit if they achieved what expected.