#TradingTypes101

1. Day Trading : Intraday (positions closed before the day ends).

Goal: Profit from short-term price movements

Tools: Technical analysis, real-time data

Risk: High due to quick decisions and market volatility.

2. Swing Trading : Days to weeks

Goal: Capture medium-term trends

Tools: Chart patterns, indicators like RSI or MACD

Risk: Moderate; less screen time than day trading.

3. Scalping

Timeframe: Seconds to minutes

Goal: Small profits from tiny price changes

Tools: Speed, high-frequency execution

Risk: Very high; requires focus and precision

4. Position Trading

Timeframe: Weeks to years

Goal: Long-term trend following

Tools: Fundamental analysis, macro trends

Risk: Lower short-term risk, higher long-term market exposure

5. Algorithmic Trading : Varies (usually automated).

Goal: Use algorithms to execute trades based on coded logic

Tools: Programming, backtesting software

Risk: Depends on algorithm quality and market conditions

6. Options Trading

Timeframe: Based on contract expiration

Goal: Leverage price movements or hedge positions

Tools: Options chains, Greeks.

Risk: High if unmanaged; can be used for both risk and reward.

7. Copy/Social Trading

Timeframe: Mirrors another trader’s strategy

Goal: Passive trading by following experienced traders

Tools: Social platforms.

Risk: Dependent on others' performance.