Day trading
Buying and selling of shares on daily basis based on market movements, global market movements, technical analysis, and previous volumes and many other related parameters is called as day trading.
Short Term Trading or investing
Share trading done from one week to couple of months is called short term.
Basically technical analysis is used for short term trading.
But as it there is no any fixed criteria for trading some traders even do short term trading based on news, Company’s announcements of quarterly results, news of merger and acquisitions etc
Mid term Investing
Share trading done from one month to couple of months, say six months to one year or two years is called mid term trading.
Fundamental analysis, Company’s announcements of quarterly results, are the basic parameters used for mid term trading or investing. Some technical analysis even make use fo technical charts and indicators for mid term trading.
Long term Investing
Investment for couple of years is called long term investing.
Long term investment may continue from one year to 10 years or even more.
Long term analysis is purely based on fundamental analysis of the company.
But it doesn’t mean that once you do the fundamental analysis and invest for 5 years and forget
it. No. The financial quarterly results or half yearly results of the company should be revived and monitored how the company is performing
|