Trading Styles for Beginners

*Short-Term Trading*

- *Definition*: Holding positions for a short period, usually minutes, hours, or days.

- *Goal*: Profit from short-term price movements.

- *Types*:

- Day trading: Closing positions before market close.

- Swing trading: Holding positions for days or weeks.

*Long-Term Trading*

- *Definition*: Holding positions for an extended period, usually weeks, months, or years.

- *Goal*: Profit from long-term trends and growth.

- *Benefits*: Less stress, more time to analyze.

*Scalping*

- *Definition*: Making multiple small trades in a short period, taking advantage of small price movements.

- *Goal*: Accumulate small profits, minimizing risk.

- *Requirements*:

- High market liquidity

- Tight spreads

- Fast execution

*Key Differences*

- *Timeframe*: Short-term (minutes/hours), long-term (weeks/months)

- *Risk*: Short-term (higher risk), long-term (lower risk)

- *Strategy*: Short-term (technical analysis), long-term (fundamental analysis)

*Tips for Beginners*

- *Start with a clear strategy*: Choose a trading style that suits you.

- *Manage risk*: Set stop-losses, limit positions.

- *Stay disciplined*: Stick to your plan, avoid impulsive decisions.

Choose a trading style that fits your goals, risk tolerance, and market understanding.