A Fundamental Trader is one who focuses on company specific events so as to identify when to buy stock and which stock to buy. It is often linked to the buy-and-hold strategy of investing.
A Day Trader is the term which is used when traders buy and sell stock during the same day. These traders seek to profit by leveraging large amounts of cash and take advantage of small price movements. There are certain stocks which are a target to Day Traders and the Fundamental Traders. Generally a trader will search for two things in a stock market i.e. the volatility and liquidity. Volatility measures the expected price range at which a trader will operate with and the liquidity allows you to exit and enter a stock at a favorable price. The more volatility of a stock would indicate greater losses or profits.
The most favorable day trade stock is the Sun Microsystems (Nasdaq:SUNW). The stock is highly liquid and cheap at the same time and it can also be volatile. When you now know the certain types of stocks to trade you would now have to identify each possible entry making use of tools like the intraday candle sticks charts and the Real-time News Service.
Scalping- This is one of the common trading strategies used by traders. It involves selling a trade as soon as it becomes profitable. The main price target with this trade is profitability. Therefore the important factor would be to identify a stock market and observe how profitable it is.
A scalper is a trader who makes several trades per day and tries to scalp profit from each particular trade.
Momentum Trading - Momentum traders search for stock that moves in one direction and try to get in to the trade so as to realize profits.
Technical Trading - Technical traders deal with the graphs and charts, they will be observing the lines on index or stock graphs for signs of divergence or convergence which may indicate sell or buy signals.
Fundamental Trading - Fundamental traders base their trade on fundamental analysis and examine various events such as the stock splits, anticipated earnings reports and acquisitions.
Swing Trading - Swing traders are similar to fundamental trader and they hold on to their position for a longer period. Swing traders require several days so as to come up with a significant price movement and produce profit.
The novice traders are able to try out these various techniques so as to decide which one would be the best for them and also gain experience by reading several books about these techniques so as to obtain a great knowledge of how to implement them when trading.
You should also not that from all these types of trades they all require different strategies. Some strategies are suitable for other types of trading and they will not suit all types of trading. In order to be a good trader you should first of all get to understand all the different types of trading before you decide on entering in any stock market trade.
You should also get to learn more about the basic strategies which show you how to enter and exit a trade and some strategies require you to monitor the charts at each and every hour and some strategies are automated. So generally if you are thinking of stock trading you should be prepared to quit your job and take on stock trading as you career because it takes a lot of focus, concentration and the rewards are great.
If you are a beginner first of all try to master the basic strategies making use of a demo account and when you have seen it to work effective then proceed to open a real account and commence your trade. If every thing is done properly you will be able to earn a favorable income on a daily base and you should not that the more money you invest on any stock market is the more risk or reward you will get.
Try to adopt a type of trade that does not require you to do complex calculations, always start of with the easiest type of trade and advance later to the complex type of trades.