Trading Techniques - Essay Example

Comments (0) Cite this document
The trading techniques in financial markets are explained as the plan for attaining maximum return through purchase or sale of stocks and securities by taking long or short positions in the market. The trading of shares and stocks are done either manually or in an automated…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER96.1% of users find it useful
Trading Techniques
Read TextPreview

Extract of sample
"Trading Techniques"

Download file to see previous pages The day-trading technique involves the strategy of taking a position in the market so that the return against the trading could be optimised at the end of the day. In this technique, the day trader focuses on the movement of the share price throughout the day. The positions taken in the day-trading technique is only for a few seconds or minutes. The trading of shares and the returns and risks related to the trading of the share are realized at the end of the day. The position of share trading is not carried over to the next day (FAMA, 1970, p.385). Thus in the day-trading technique, the trader could determine the net position of profit and loss on a daily basis.
The swing trading technique requires the trader to identify the trends of the share price movements of the stocks. The swing in the share prices over a particular range could be identified to be favourable by the trader in which the trader desires to maximize the returns of the stock with the swing of the increasing share prices (JEGADEESH and TITMAN, 1993, p.68). The technique of swing trading is not a speedy process of trading as the trader holds the stock positions for days and weeks as per the analysis of the swing movement of the share prices. The effective implementation of swing trading techniques helps in the growth of equity base. There are various types of swing trades. The swinging stock price may depict up swings which reflect increasing prices of stocks, down swing which reflect declining prices of stock, short swing movements and the long swing movements. The position of the stocks is held by the trader based on the anticipation of the swing movement of the share prices (LO and MACKINLEY, 1988, p.48).
The trend trading is another technique where the trader determines the movement of the share prices in the long run. The trend trading techniques is a simple technique of optimizing the returns from the ongoing fluctuation trend of the share prices and anticipation of how far ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
(“Trading Techniques Essay Example | Topics and Well Written Essays - 500 words”, n.d.)
Trading Techniques Essay Example | Topics and Well Written Essays - 500 words. Retrieved from https://studentshare.org/finance-accounting/1631808-trading-techniques
(Trading Techniques Essay Example | Topics and Well Written Essays - 500 Words)
Trading Techniques Essay Example | Topics and Well Written Essays - 500 Words. https://studentshare.org/finance-accounting/1631808-trading-techniques.
“Trading Techniques Essay Example | Topics and Well Written Essays - 500 Words”, n.d. https://studentshare.org/finance-accounting/1631808-trading-techniques.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document
Stock trading experience
This activity helps in gaining huge experience about the market fluctuations and also keeps the instinct on the line. Stock Trading Experience Just few weeks ago, I decided to enter into the stock market and become the professional trader.
3 Pages(750 words)Essay
Role of high frequency trading in modern financial markets
Financial Institutions have developed the tools and techniques with the help of technology which clearly offer a distinctive advantage in terms of profitability as well as total returns earned on investment. High Frequency Trading is one such innovation wherein firms use sophisticated technology to rapidly trade securities.
23 Pages(5750 words)Essay
Insider Trading
Economically analyzing the situation in which an individual violates the insider trading laws can help in judging whether a penalty serves its purpose of discouraging violation of insider trading laws. An individual would commit such an act after weighing the
1 Pages(250 words)Research Paper
Casa study of Computer Driven Trading
This paper presents a detailed analysis of different aspects of computer driven trading. This research is aimed to analyze and discover the in-depth factors regarding the effectiveness or shortcomings of computer
5 Pages(1250 words)Essay
Insider Trading
It is considered so important because this type of security transaction, insider trading, can potentially harm individual investors, industries, and a country's business reputation. This is a truly global issue. Insider trading is defined by the United States Securities and Exchange Commission as "buying or selling a security, in breach of a fiduciary duty or other relationship of trust and confidence, while in possession of material, non-public information of the security" (2006).
2 Pages(500 words)Essay
Stock trading
The better of all the available stock trading strategy for newbie’s is discussed. Hedging is a better stock trading strategies when the investors’ aim is capital protection. Hedging is a method by which an investment can
2 Pages(500 words)Essay
International Trading Operation
By the year 1921, in excess of one million square years annually were being manufactured in the UK by the industry with an export market of nearly 30% of the net production. Presently, H&R Johnson has invested more than 35 million pounds over the last three years in forming a completely new mechanized manufacturing unit on a singly integrated site in Stroke on Trent.
10 Pages(2500 words)Essay
Insider Trading
However, the last three decades have witnessed enactment of several complex federal laws effectively prohibiting insider trading with regulations being at the epicenter
2 Pages(500 words)Essay
Share Trading Assignment
I am requesting funding in the amount of 100,000 pounds in total estimated capital cost. Your consideration is greatly appreciated. I would like to acknowledge the great service provided by the London stock exchange in the information provided in order to write this
8 Pages(2000 words)Essay
How do you evaluate a stock
P/E ratio illustrates the most appropriate stocks as fewer than 20. The stocks should not exceed 40. The ratio illustrates how long a stock will pay the investment if there is no
2 Pages(500 words)Essay
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Let us find you another Essay on topic Trading Techniques for FREE!
logo footer
Contact us:
Contact Us Now
FREE Mobile Apps:
  • StudentShare App Store
  • StudentShare Google play
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • Miscellaneous
  • The Newest Essay Topics
  • Index samples by all dates
Join us:
Contact Us