Every market enthusiast faces the same question in the beginning. What does he want to practice? Is it trading that has created an interest, or attractive investment options that have made him enter the market for making long-term profits? The answer from most of the individuals is also the same. Most newcomers choose practicing free online trade UAE over making an investment. And, they have their reasons.
Why Do They Prefer Trading?
If you choose to become an investor, you are supposed to know everything you need. Investment required extensive knowledge about the market and its behaviour over a long period of time. One has to be very knowledgeable and experienced in order to make money from investment. It is a long-term business where one has to be very strategic and patient to enjoy the fruits of their hard work. With trading, that’s not the case.
Even a newcomer with little knowledge and research can start commodity trading or online currency trading Dubai and make profits. There are many free online trading sites in UAE that can help you with that. So, they tend to fall for online trading. And, that’s where the next challenge begins. Now, they get to choose from a number of trading options. Let’s see what they are.
What Are The Options?
Just like any other profession, not every person will be comfortable with all the forms of trading. Some people will be good at trading for short periods, others may prefer to do it for a longer time. Depending on different individuals’ preferences, there are many popular forms of free online trade UAE. The classification can be done on the basis of time frames, objectives and techniques involved. The objectives and techniques can be practiced for all time frames.
Here are the most popular time frame options:
This type of trading is supposed to be done within a day. The trader closes the position on the same day and earns profit. The period of holding a position can be extremely short and you shouldn’t feel shocked if you get to see it being done within seconds. However, it may be done within hours as well. You can get help from Metatrader 4 brokers UAE and ensure better outcomes.
Another form of trading is a short-term trading where the positions can be held for a few days, or sometimes weeks. Not to forget, all techniques can be practiced in this time frame. The traders get benefitted in terms of leverage as it is smaller as compared to Intra-Day Trading but the risk is higher.
In long-term trading, traders can hold the position for several weeks. This period can even be extended to months if required. Again, the leverage is lowest with the highest amounts of risk and reward. You can visit the best online trading sites UAE for more information on this.
Now, let’s see the popular classifications in terms of techniques:
Price Action Trading
In this type of trading, the traders plans their trade strategies according to the price behaviour. That’s why it is called price action trading. Various timeframes are taken into account before entering a trade. You can go online and follow the best online trading website UAE to read more about this.
In pattern trading, repeatedly occuring patterns are used for making profits. This trading is usually done for a small time frame.
Swing trading is practiced with stocks that are in momentum. Traders expect quick results. They expect the stock to perform as they want, and if it doesn’t, they prefer exiting their position.
Mean Reversal Trading
In this trading, traders wait for the trending stocks to move back to the mean position before making an entry. That’s why it is known as mean reversal trading.
As the name suggests, traders use trends to make profits. They just pick trending stocks, ride the trend without waiting further and enjoy the benefits inventory here.