Types of Trading 101
1. Day Trading
- Buying and selling assets within a single day.
- Takes advantage of short-term price fluctuations.
2. Margin Trading
- Using borrowed funds to increase purchasing power.
- Can increase profits but also increases risks.
3. Long-term Trading
- Holding assets for a long period (months or years).
- Based on fundamental analysis.
4. Automated Trading
- Using software to execute trades automatically.
- Relies on pre-defined strategies.
5. Swing Trading
- Holding positions for several days or weeks.
- Takes advantage of market movements.