#TradingTypes101

#deepseek

Here’s a quick overview of common **trading types** in financial markets, perfect for beginners (#TradingTypes101):

### **1. By Holding Period**

- **Scalping** → Ultra-short-term (seconds/minutes), high-frequency trades.

- **Day Trading** → Positions opened/closed within the same day (no overnight risk).

- **Swing Trading** → Medium-term (days/weeks), capitalizing on price "swings."

- **Position Trading** → Long-term (months/years), based on fundamentals/macro trends.

### **2. By Strategy**

- **Trend Trading** → Follows market momentum (e.g., "buy high, sell higher").

- **Range Trading** → Buys at support, sells at resistance in sideways markets.

- **Arbitrage** → Exploits price differences of the same asset across markets.

- **Algorithmic Trading** → Uses automated systems/quant models (HFT, etc.).

### **3. By Market**

- **Stocks** → Shares of companies (e.g., equities).

- **Forex (FX)** → Trading currency pairs (e.g., EUR/USD).

- **Options/Futures** → Derivatives (leveraged contracts).

- **Crypto** → Volatile digital assets (e.g., Bitcoin).

### **4. Risk-Based Styles**

- **Discretionary Trading** → Human decision-driven.

- **Systematic Trading** → Rule-based (backtested strategies).

### **Key Considerations**

- **Liquidity**: How easily you can enter/exit trades.

- **Volatility**: Price fluctuation risks/opportunities.

- **Leverage**: Borrowed capital (amplifies gains/losses).

Would you like a deep dive into any specific type? 🚀