#TradingTypes101
[7/6, 19.24] Meta AI: Trading Types 101: Understanding the Basics
Trading Types
- *Day Trading*: Buying and selling assets within a single trading day, with all positions closed before the market closes.
- *Swing Trading*: Holding positions for a short to medium-term period, typically from a few days to a few weeks.
- *Position Trading*: Holding positions for a longer-term period, often months or even years.
- *Scalping*: Making numerous small trades in a short period, taking advantage of small price movements.
Trading Styles
- *Technical Trading*: Based on chart patterns, technical indicators, and other technical analysis tools.
- *Fundamental Trading*: Based on economic and financial data, news, and events.
- *Sentiment Trading*: Based on market sentiment and emotions.
Risk Management
- *Stop-Loss Orders*: Automatically closing a position when it reaches a certain price level to limit losses.
- *Take-Profit Orders*: Automatically closing a position when it reaches a certain price level to lock in profits.
- *Position Sizing*: Managing the size of trades to limit risk exposure.
Trading Strategies
- *Trend Following*: Identifying and following market trends.
- *Range Trading*: Buying and selling within a specific price range.
- *Breakout Trading*: Trading on the breakout of a specific
[7/6, 19.24] Meta AI: Trading Types 101: Understanding the Basics
Trading Types
- *Day Trading*: Buying and selling assets within a single trading day, with all positions closed before the market closes.
- *Swing Trading*: Holding positions for a short to medium-term period, typically from a few days to a few weeks.
- *Position Trading*: Holding positions for a longer-term period, often months or even years.
- *Scalping*: Making numerous small trades in a short period, taking advantage of small price movements.
Trading Styles
- *Technical Trading*: Based on chart patterns, technical indicators, and other technical analysis tools.
- *Fundamental Trading*: Based on economic and financial data, news, and events.
