#TradingTypes101
Here's a concise overview of common trading types:
1. Day Trading: Buying and selling securities within the same trading day. Positions are closed before the market closes to avoid overnight risk. Focuses on short-term price movements.
2.Swing Trading: Holding positions for several days to weeks, aiming to capture gains from anticipated price "swings" or trends. Uses technical and fundamental analysis.
3.Position Trading: Long-term approach where trades are held for weeks, months, or even years. Focuses on fundamental analysis and macroeconomic trends.
4.Scalping: Making numerous trades within minutes or seconds to profit from tiny price changes. Requires intense focus and quick execution.
5. Algorithmic Trading:Using computer programs and algorithms to execute trades automatically based on predefined rules (price, timing, volume, etc.), often at high speed.
All trading involves significant risk of loss.Thats it.