#TradingTypes101

There are different types of trading, which are mainly differentiated by the time horizon of the operations and the strategy used. The most common are scalping, day trading, swing trading, and position trading.

Scalping: It is characterized by very short trades, in minutes or even seconds, seeking small price movements. It requires high concentration and knowledge of technical analysis.

Day Trading: Involves opening and closing positions on the same day, taking advantage of intraday market movements. It requires considerable time to observe and make decisions.

Swing Trading: It focuses on short to medium-term trades, generally from several days to weeks, seeking more pronounced movements than day trading. Patience and technical analysis are required to identify patterns.

Position Trading: Involves holding positions for a long period, weeks or even months, seeking trends and macro movements in the market. It requires a long-term vision and good risk management.