#TradingTypes101 Trading Types 101" is a great way to start understanding the different approaches people take in the financial markets. Here's a breakdown of the main trading styles, categorized by their typical timeframes:

I. Short-Term Trading Styles

These styles focus on profiting from rapid price movements and typically involve holding positions for very short periods.

* Scalping:

* Timeframe: Seconds to minutes.

* Goal: To make numerous small profits from tiny price fluctuations throughout the day.

* Characteristics: High frequency of trades, requires intense focus, quick decision-making, and often relies on direct market access and precise order execution. Transaction costs can be significant due to the volume of trades.

* Day Trading:

* Timeframe: Minutes to hours (positions are opened and closed within the same trading day).

* Goal: To capitalize on short-term price movements and avoid overnight market risk.

* Characteristics: Requires constant market monitoring, strong technical analysis skills (charts, patterns, indicators), and disciplined risk management. Day traders close all positions before the market closes.

* Momentum Trading:

* Timeframe: Short-term to medium-term.

* Goal: To profit from strong price trends (upward or downward momentum) before they reverse.