š¹ Based on Time Horizon
1. Scalping
Very short-term (seconds to minutes).
Focuses on small price movements.
High frequency, quick profits.
2. Day Trading
Positions are opened and closed within the same trading day.
No overnight risk.
Requires constant monitoring.
3. Swing Trading
Medium-term (days to weeks).
Traders capture price "swings" in the market.
Less time-intensive than day trading.
4. Position Trading
Long-term (weeks to months or years).
Based on fundamental analysis and major trends.
Less frequent trades, more patience required.
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š¹ Based on Strategy
1. Trend Trading
Follows the direction of the market trend (up or down).
"The trend is your friend."
2. Range Trading
Trades within support and resistance levels.
No clear trend; market moves sideways.
3. Breakout Trading
Enters a trade when price breaks above resistance or below support.
Assumes momentum will continue after the breakout.
4. Reversal Trading
Looks for points where the market is likely to reverse.
High risk, requires good timing.