Types of Trading

When you start playing the stock market game, like the free stock market game at HowTheMarketWorks.com, you will quickly realize there are several types of trading. It is important for you to decide which online paper trading strategy works best for you and your needs.

Stock Market Game Day Trading

The goal of day trading is to close all of your positions by the end of the day and not hold any over until the next. Day traders try to catch price movements that occur within a single day in order to capitalize on it. A day trader may make one or two trades a day.
Long Term Buy and Hold Investing

Long Term Buy and Hold Investing

This type of investing focuses on the long term, usually between three and five years. Many times these investors don’t use exit strategies as they are counting on recouping any losses in the long term. Behind this strategy is the assumption that most stocks will increase in value over the years. This is a good strategy to use if you would rather buy some stocks and check on them quarterly instead of every day. If you want to know which stocks to buy, here are some of my favorite links:
Motley Fool Review
Swing Trading

Swing Trading

Swing trading is right in between day trading and long term investing. The time frame involved can be from a couple of days or a few months, or anywhere in between. While day trading requires constant attention, research for swing trading can be done once markets close, or after a day at work in the evenings. This trading strategy is good for those investors with full time jobs that still want to handle their investing, rahter than leaving it in the hands of a broker.

Scalping

This type of trading occurs on the smallest scale of all the above, smaller even than day trading. The goal here is to catch small price movements, often within mere seconds. Most of the trading in this situation will be done in the most volatile trading time, before noon eastern standard time. Scalping requires the trader to be able to handle stress well, make split second decisions, and have reliable technology such as high speed internet connection and computer.
Whether you choose the high stakes world of scalping or the slow and steady long term investing, stock market games can help you practice and refine your strategy. They can also help you decide which strategy works the best for you.

College Stock market game can help you learn trading. Sign up for one today!