#TradingTypes101 A simple guide to the most famous trading methods and strategies used in financial markets.
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📈 1. Day Trading
Definition: Buying and selling assets on the same day.
Goal: To achieve profit from short-term price movements.
Common tools: Stocks, foreign currencies (forex), digital currencies, contracts for difference.
Time frame: Minutes to hours.
Suitable for: Those who have enough time and the ability to make quick decisions.
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📉 2. Swing Trading
Definition: Holding positions from several days to weeks.
Goal: To benefit from medium-term trends.
Analysis used: Technical analysis, chart patterns.
Suitable for: Those who can monitor the market daily without being tied to all-day trading.
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⏳ 3. Position Trading
Definition: Opening long-term positions that can last for weeks or months.
Focus: On economic factors and fundamental analysis.
Time frame: Weeks to months, and sometimes years.
Suitable for: Investors who prefer to be patient and have a long-term vision.
💹 4. Scalping
Definition: Making very short transactions with the aim of making small repeated profits.
Number of transactions: Can reach hundreds in a day.
Time frame: Seconds to minutes.
Suitable for: Those who have high speed in decision-making and use advanced technical tools.