Trading Types 101: Basic Types of Trading
1. Day Trading
Quick trades within a single day. The goal is to profit from small price fluctuations without holding positions overnight.
2. Swing Trading
Holding positions from a few days to a few weeks. Focus on medium-term trends.
3. Position Trading
Long-term holding of assets, based on fundamental analysis and macro trends.
4. Scalping
Very short-term trades — from a few seconds to minutes. Requires high speed and attention.
5. Algorithmic Trading
Using algorithms and bots to execute trades based on predefined rules.
These types of trading help choose a strategy depending on the time you are willing to devote and your risk profile.