#TradingTypes101 In the world of trading, there are different styles, each with its own logic and level of risk:
Scalping and Day Trading: These strategies focus on very short time frames, such as 1 or 5 minutes. The day trader, for example, opens and closes trades on the same day to avoid overnight risk. This type of trading seeks quick profits through small market movements.
Swing Trading: The swing trader holds positions for days or weeks, taking advantage of medium-term trends. This approach requires patience and the ability to identify entry and exit points based on technical analysis and, at times, fundamental analysis.
Position Trading: The position trader operates long-term, basing their decisions on solid fundamentals of the asset. This type of trader usually ignores short-term volatility and focuses on sustained growth.
A trader buys and sells financial assets seeking to profit from price fluctuations. To do this, they analyze markets and trends, using various tools and strategies. Their goal is to maximize profits and minimize losses, which requires discipline, adaptability, and solid risk management.