Position Trade.
A core trade is an intermediate to long-term position often based on a weekly chart, and can have a time horizon as short as a few weeks to as long as several months or more. Many traders prefer to keep their core positions in a separate account in order to avoid the potential margin issues involved in holding positions overnight in an active day trading account. Another advantage to separating the core trades is strictly a psychological one. Many traders find that by keeping long-term positions outside of their active trading accounts, they are less tempted to make spurious short-term decisions on their long-term core positions. A typical successful core trade can yield anywhere between three to five points to as much as twenty or more points (much more in some cases) depending on the price of the stock and general market conditions.

Swing Trade.
A swing trade is a short to intermediate-term trade typically based on a daily chart that aims to capture stock or market swings lasting between 2 to 5 days or more. By definition, swing trades are held overnight, and commonly appeal to traders seeking to capitalize on multi-day moves without having to monitor their trades moment by moment. A typical successful swing trade can yield anywhere between one or two points to as much as ten or more points depending on the price of the stock.

Day Trade.
By definition, a day trade is quite simply a trade that is closed out by day’s end (i.e., not held overnight). This does not mean, however, that it must be a daylong trade, closed only minutes before the closing bell is rung. Instead, day trades can be thought of as strictly “intra-day” trades. For example, a stock setting up as a swing trade in the early part of the day is frequently best thought of as a day trade in which open profits resulting from an above-average morning move are to be locked in ahead of the often treacherous midday doldrums. Other day trades can simply be based on a larger intra-day timeframe such as 60- or 15-minute chart, and not be suitable for holding overnight. A typical successful day trade can yield anywhere between slightly less than a point to as much as five or more points depending on the price of the stock and the degree of intra-day market movement on any given day.

Scalp Trade.
A micro trade is one in which a trader seeks to capture small to modest-sized profits based on a smaller intra-day timeframe such as a 2- or 5-minute chart or on Level 2 activity alone. Profits in micro trades are best taken quickly, typically on the first meaningful move using momentum to lock in gains. Conversely, stops are kept extremely tight and many micro traders simply “get out” at the first sign of trouble. Execution knowledge and skills are a prerequisite to employing this very short-term approach. A typical successful micro trade can yield anywhere between a modest $0.10 on the low end to as much as $0.75 or more on the high end.