PostHeaderIcon Research and The Short-Term Trader

Stock Market IndicatorsResearch and trading go hand in hand in ensuring that success at certain levels can be reached. The type of research involved may prove important and may also affect how each trading decision is being made. But in the case of the short-term trader, extensive research sometimes may not be as useful.

Extensive research of the markets aim to take into consideration all the possible market factors currently affecting the trading climate. But a method or research that may prove too extensive and time consuming may also become quite a disadvantage to a trader looking to act now or to gain profits on the short term. The research may sometimes even complicate matters even more.

Extensive research may and may not work for all types of traders in the market. In the case of mutual fund managers and traders who control large amounts of capital, it might be useful and valuable indeed. For the average short-term trader, this might not be as important. Market research may indeed help traders look closely at the indicators and determine the right set-ups and movements. But even then, it may not guarantee to produce profitable results all the time.

When it comes to short-term traders who rely on quick action and more flexibility, extensive market research may prove to be a disadvantage rather than a benefit. It may prevent them from being able to act quickly most of the time. Most would rely instead on relying on their own type of quick research that may help them gauge the market at a certain time.

Short-term traders usually rely on quick research of stocks that usually are considered trade-able any day of the week. They usually make screens for stocks that are poised to move quickly at a certain direction. An example of such screens may include taking the price of the stock into consideration as well as the volume and the average percentage of movement based on the price. This allows short-term traders to quickly determine which stocks are worth investing in.


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