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® “Home-Study Course” Study Manual Page 218

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Outside Paper

“Outside Paper” refers to trades coming from off the trading floor.
There are four types of “Outside Paper”. They are as follows:

1. Long Term Investors:

These orders are from retail brokerages, mutual funds, or traders
using long term weekly charts to base their trading decisions.
When these traders commit to the market, it indicates longer term
trends are in place and the fundamentals of a company are
healthy. Short term news does not have an impact on this group
of traders known as “Investors”.

2. Position Traders:

These orders are from retail brokerages, and traders known as
“Position Traders” or “Swing Traders.” Trades are usually based
on daily charts and at times sixty minute charts. Short term news
events usually cause these traders to trade.

3. Intraday Swing Traders:

Use a retail brokerage or a direct access brokerage. These traders
can trade often and may hold favorable positions overnight.

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