#TradingTypes101

Trading Types 101: A Beginner's Guide to Market Strategies

Trading in financial markets offers a wide range of strategies suited for different goals, risk appetites, and timeframes. Whether you’re a beginner or looking to refine your approach, understanding the main types of trading is essential.

1. Day Trading:

Day traders buy and sell securities within the same trading day. They aim to profit from small price movements using technical analysis and often make multiple trades per day. It requires discipline, quick decision-making, and constant market monitoring.

2. Swing Trading:

Swing traders hold positions for several days or weeks to capture short- to medium-term trends. This style combines technical and fundamental analysis and is more relaxed than day trading but still requires regular attention to the markets.

3. Position Trading:

This is a longer-term strategy where traders hold positions for weeks, months, or even years. Position traders base decisions on broader economic trends and often use fundamental analysis. It's closer to investing than active trading.