#TradingTypes101 "Trading Types 101" is a beginner's guide to understanding the different approaches and strategies used in financial markets. It helps newcomers grasp the fundamental concepts of how people buy and sell financial instruments with the aim of making a profit.

Here's a breakdown of what "Trading Types 101" typically covers:

**1. Trading vs. Investing:**

* **Trading:** Generally involves shorter-term positions, aiming to profit from frequent price fluctuations. Traders actively monitor markets and make quick decisions.

* **Investing:** Typically involves longer-term positions, focusing on the fundamental value and growth potential of an asset over months or years. Investors tend to be less active in monitoring daily price movements.

**2. Major Trading Styles (based on holding period):**

* **Scalping:** The shortest timeframe. Traders hold positions for seconds to minutes, aiming for very small profits on numerous trades throughout the day. Requires intense focus and quick execution.

* **Day Trading:** Trades are opened and closed within the same trading day, without holding positions overnight. Day traders aim to profit from intra-day price movements.

* **Swing Trading:** Positions are held for several days to a few weeks, aiming to capture "swings" in price movements. This style is less intense than day trading but still requires regular monitoring.

* **Position Trading:** The longest timeframe among trading styles. Positions are held for weeks, months, or even years, based on long-term trends and fundamental analysis. It's closer to investing but still involves active management and market timing.

**3. Analytical Approaches:**

* **Technical Analysis:** Focuses on analyzing historical price charts, volume data, and various indicators (like moving averages, RSI, MACD) to predict future price movements. It assumes that all relevant information is already reflected in the price.