Here's a detailed overview of key trading types (approx. 120 words):
1. **Scalping:** Involves executing dozens or hundreds of trades within minutes or seconds, aiming to profit from tiny price movements. Requires intense focus, fast execution, and significant volume.
2. **Day Trading:** All positions are opened and closed within the same trading day. Traders capitalize on intraday price volatility, avoiding overnight risk. Requires technical analysis skills and discipline.
3. **Swing Trading:** Holds positions for several days or weeks, aiming to capture "swings" within a larger trend. Uses both technical and fundamental analysis to identify entry and exit points around support/resistance or momentum shifts.
4. **Position Trading:** The longest-term approach, holding positions for months or years. Focuses primarily on fundamental analysis (economic trends, company health, long-term charts) to capture major market moves. Less time-intensive but requires significant capital and patience.
**Key Differences:** Timeframe and analysis method. Scalpers/day traders focus on minutes/hours and technicals. Swing traders use days/weeks with a mix of tech/fundamentals. Position traders focus on months/years and fundamentals. Risk generally decreases with longer timeframes.