#CEXvsDEX101 #TradingTypes101 ---
## Trading Types: Your Simplified Guide
Trading is simply the buying and selling of financial assets to achieve profit. Here are the basic types:
### 1. Day Trading
You buy and sell on the same day, aiming to profit from small price changes. This type requires constant market monitoring and quick decision-making.
### 2. Swing Trading
You hold your positions for days or weeks to benefit from medium price movements. It relies on technical analysis to determine the best times to enter and exit.
### 3. Position Trading
Long-term trading, you hold your positions for months or years. It relies on fundamental analysis of the true value of the asset and is not affected by short-term fluctuations.
### 4. Scalping
You execute very quick trades (seconds or minutes) to achieve small, repeated profits.
### 5. Trend Trading
You identify the overall market trend (upward or downward) and trade in accordance with it to benefit from the continuity of price movement.
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Each type has its risks and opportunities. Your choice depends on your goals and the time you can dedicate. Would you like to delve deeper into any of these types?