#TradingTypes101 Trading involves buying and selling financial instruments (like stocks, currencies, crypto, commodities, etc.) to make a profit. Different styles suit different personalities, goals, and time commitments.

🕒 1. Day Trading

Time Frame: Minutes to hours (positions closed before the day ends)

Goal: Profit from short-term price movements

Needs: Fast decision-making, technical analysis, and active monitoring

Common in: Stocks, Forex, Crypto

📈 2. Swing Trading

Time Frame: Days to weeks

Goal: Profit from medium-term trends

Needs: Patience, chart analysis, some understanding of fundamentals

Common in: Stocks, Crypto, Forex

📊 3. Position Trading

Time Frame: Weeks to months (sometimes years)

Goal: Long-term gains based on fundamental trends

Needs: Deep market understanding, macroeconomic awareness

Common in: Stocks, Bonds, Commodities

⚡ 4. Scalping

Time Frame: Seconds to minutes

Goal: Many small profits quickly

Needs: High-speed trading setup, technical focus, minimal fees

Common in: Forex, Futures, Crypto

🧠 5. Algorithmic Trading (Algo Trading)

Time Frame: Automated (can be any)

Goal: Use pre-programmed strategies to trade automatically

Needs: Coding skills or access to trading bots

Common in: All markets (especially institutional trading)

🏦 6. Investing (vs. Trading)

While not trading, it's worth contrasting:

Long-term holding (years+)

Focus on fundamentals, company value

Fewer trades, less time commitment

🔍 Bonus: Trading Based on Strategy

Technical Trading: Based on charts, indicators, price patterns

Fundamental Trading: Based on economic data, earnings, news

Sentiment Trading: Based on crowd behavior and market emotion

News-Based Trading: Reacts to real-time news and events