There are several types of stock trading, based on profit expectations and on time frame of realized trades. I personally divide them into these categories:
* Day trading is for very short term trades. Day trader holds position only during one day. It means that no position is held overnight. Such traders use intraday charts with very short primary time frame like 3 min, 5min, or 10 min. Their trades last from several minutes to hours.
* Swing trading is based on daily charts. Trades can last from one day up to several days or a few weeks. This is my favorite time frame. Basic type of chart is daily. Some swing traders use also 240 min (4hours) charts as primary time frame. I like these 4hours charts, too. See my charts setup for my analysis, if you want.
* Position trading is based on weekly charts. Such trades can last much longer. Typical holding period is between 1 month to 6 months
Any of these approaches can make money. But if you plan to generate regular income from trading, you have to consider shorter time frame for trading (day trading or swing trading). Position trading is good if you want to create more wealth.
My special multi time frame stock trading tip !
I like to use same stock for swing trading and for position trading . When I find stock with nice chart for position trade, it often means also several possibilities for swing trade in same stock.
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