If you are new to trading or thinking about taking the plunge into the often-exciting world of the stock market, you might understandably have some questions about the various types of trading. After all, you are using your hard earned money for your new hobby, so you deserve to know why day trading might be a good option or if long term stock options are a better choice for you. With that in mind, check out the following four types of trading and what each one involves:

Mobile Trading

Mobile trading is pretty much what the term implies — using mobile devices like cell phones to access trades whenever and wherever you are. You can also use your smartphone to check on current values of stocks and if the market is rising or falling. If you are grabbing lunch with a close and trusted friend who is knowledgeable about stock trading, and she mentions a great deal on a stock that is expected to soar in value, you don’t have to wait until you are back at your home computer to buy some — or until you call a financial broker. Instead, you can either buy the stock through your bank’s app, if it has that feature, or you can set up an account with a mobile-friendly platform like Vanguard or Charles Schwab and use your phone to buy it. Mobile trading is quick and easy, and makes buying and selling stock very accessible for newbies. Of course, if it’s been some time since you have upgraded your smartphone and it tends to freeze up and crash when you least expect it, you may want to invest in a new one. Head to a reputable dealer like T-Mobile and check out their selection of affordable and state-of-the-art smartphones; look for one that has a budget-friendly unlimited data plan that will allow you to complete as many mobile trades as you like.

Day Trading

For people who love a good adrenaline rush and enjoy taking risks, day trading might be something to consider. Day trading involves buying and selling stock in a short amount of time — often in about a day. The idea is that if you can amass a small profit from each day trade, over time you will rack up a nice gain. Thanks to the aforementioned online platforms and low priced stocks, it is pretty easy to get started in day trading — but it can also be risky. If you guess correctly on which stocks will rise in value you can earn money but in many cases, day traders end up losing money.

Long-term Stock Trading

If you are not really freaked out by the notion that your stock value will rise and fall, then long term trading is for you. Long-term stock investors tend to be patient and are willing to stick it out with a company for the long run, believing that over time, the stock market is a great investment. For example, if you are a devout fan of Starbucks and want to purchase stock in a company that you adore, then this long-term approach will probably make the most sense. You can buy the stock, tuck it away in your portfolio and know that you’ll keep it for years, instead of hastily trading it if its value suddenly drops a bit.

Trading FOREX

Once you get your trading feet wet and are comfortable buying and selling stocks, you might want to branch out to other forms of trading, including FOREX. In the FOREX market, you are buying or selling currencies — and hoping that the currency you buy will go up in value. For example, if you purchase 1,000 Euros at the a rate of 1.10 and then two weeks later Euros have an exchange rate of 1.25, you can exchange the Euros back into U.S. dollars and make a profit. Like day trading, FOREX involves a certain amount of risk, so it’s worth taking an honest look at your personality and what you are comfortable with before giving FOREX a try.