#TradingTypes101 Trading encompasses various approaches, categorized by timeframe, strategy, and asset class . For beginners, understanding these distinctions is crucial . Common order types include market orders (executed immediately at the current market price) and limit orders (executed only at a specified price or better) . Day trading involves holding assets for short periods, often within a single day, while swing trading holds positions for several days or weeks . Long-term investing, in contrast, focuses on holding assets for extended periods, often years, aiming for long-term growth . The optimal trading style depends on individual risk tolerance, goals, and available time . Understanding these differences is fundamental to successful trading .