#TradingTypes101 common types of trading

1. Day Trading

Time Frame: Intraday (same day)

Goal: Profit from small price movements during the day

Tools: Real-time charts, technical indicators

Requires: Fast decision-making, market access, discipline

🧠 High risk, high reward. Best for active traders with time and experience.

2. Swing Trading

Time Frame: Several days to weeks

Goal: Capture short- to medium-term trends

Tools: Technical analysis, chart patterns

Requires: Patience and a good understanding of market cycles

📊 Balance between day trading and long-term investing.

3. Scalping

Time Frame: Seconds to minutes

Goal: Profit from tiny price movements many times a day

Tools: High-speed trading systems, low latency

Requires: Focus, discipline, and a strong risk management plan

⚡ Not for the faint-hearted. Demands precision and speed.

4. Position Trading

Time Frame: Weeks to months (sometimes years)

Goal: Profit from major market trends

Tools: Technical + fundamental analysis.

Requires: Strong market thesis and patience

🛠️ Less screen time, more big-picture thinking.

5. Algorithmic Trading

Time Frame: Varies (depends on strategy)

Goal: Use coded strategies to automate trades

Tools: Programming skills, data, backtesting

Requires: Technical expertise and solid strategy

🤖 "Bots do the work." Ideal for tech-savvy traders.

6. Options Trading

Time Frame: Varies (from minutes to months)

Goal: Trade options contracts for speculation or hedging.

Tools: Option chains, Greeks, volatility analysis

Requires: Deep understanding of options mechanics.

🧩 Complex but powerful. Can generate income or protect investments.

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