#TradingTypes101
"Trading Types 101" is typically a beginner-level overview of the different types or styles of trading in financial markets. Here's a simplified breakdown of the main trading types that would usually be covered in a "101" course or introduction:
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📊 1. Day Trading
Timeframe: Within a single day.
Goal: Profit from small price movements.
Characteristics:
Positions opened and closed the same day.
Requires constant monitoring.
High-risk, fast-paced.
💹 2. Swing Trading
Timeframe: Several days to weeks.
Goal: Capture short- to medium-term trends.
Characteristics:
Less stress than day trading.
Combines technical and fundamental analysis.
📈 3. Position Trading
Timeframe: Weeks to months (even years).
Goal: Profit from long-term trends.
Characteristics:
Fewer trades, lower time commitment.
Heavy use of fundamental analysis.
📉 4. Scalping
Timeframe: Seconds to minutes.
Goal: Make tiny profits repeatedly.
Characteristics:
High trade volume.
Requires lightning-fast execution and decision-making.
🧠 5. Algorithmic/Quantitative Trading
Timeframe: Varies (automated).
Goal: Use algorithms to execute trades.
Characteristics:
Based on programmed strategies.
Often used by hedge funds and institutions.
🌍 6. News-Based/Event Trading
Timeframe: Varies.
Goal: Profit from market reactions to news/events (e.g., earnings reports, Fed announcements).
Characteristics:
High volatility.
Requires fast analysis of real-world events.
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🔍 Bonus: Investment vs. Trading
Investing: Long-term strategy (buy and hold).
Trading: Shorter-term strategies focused on price movement and timing.
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