Daily Trading (Day Trading):
* Time Horizon: Within a single trading day (from minutes to hours). Positions are closed before the market closes to avoid overnight trading risks.
* Goal: To benefit from daily price fluctuations.
* Characteristics: Requires intense focus, quick decision-making, and strong technical analysis skills.
* Ideal for: Full-time traders with deep market expertise and a high-risk tolerance. * Swing Trading:
* Time Horizon: Short to medium term (from days to several weeks).
* Goal: To monitor "swings" or short-term trends in price movements.
* Characteristics: Less time-consuming than day trading, often uses a mix of technical and fundamental analysis to identify potential reversals or trend continuations.
* Ideal for: Flexible part-time traders who can regularly monitor the market but not continuously.
* Position Trading:
* Time Horizon: Long term (weeks, months, or even years).
* Goal: To benefit from major price movements and long-term trends, often relying on fundamental analysis.
* Requires patience and a willingness to endure short-term market fluctuations. Less frequent monitoring is needed.
* Ideal for: Investors with a patient and non-intrusive style who believe in long-term asset growth.
These types often overlap.