#TradingTypes101

Trading types encompass various strategies and approaches for buying and selling financial instruments to profit from market fluctuations. These include short-term strategies like scalping and day trading, as well as longer-term strategies like swing trading and position trading. Other types include arbitrage, fundamental analysis, and technical analysis.

1. Short-Term Trading

Scalping:

Involves making numerous small trades within seconds or minutes, aiming to capture tiny price fluctuations, often relying on high trading volumes and tight spreads.

Day Trading:

Opens and closes trades within the same trading day, capitalizing on short-term price movements.

2. Long-Term Trading:

Fundamental Trading:

Focuses on a company's financial health and the overall market to identify undervalued or overvalued assets.

Technical Trading:

Uses technical analysis, such as chart patterns and indicators, to predict future price movements.