#TradingTypes101
1. Day Trading
Timeframe: Intraday (minutes to hours)
Focus: Capitalizing on short-term price movements
Tools: Charts, technical indicators, real-time news
Risk Level: High
Day trading involves buying and selling assets within the same day to profit from price fluctuations. Day traders rely on market volatility, and they typically close all positions before the market closes to avoid overnight risk. This style requires significant time, discipline, and a deep understanding of technical analysis.
📉 2. Swing Trading
Timeframe: Days to weeks
Focus: Riding short- to medium-term trends
Tools: Chart patterns, momentum indicators, fundamental triggers
Risk Level: Medium
Swing traders aim to capture gains from market "swings." They look for reversal or continuation patterns and hold positions for several days or weeks. Swing trading offers a balance between active trading and a less stressful pace than day trading.
📊 3. Position Trading
Timeframe: Weeks to months (or even years)
Focus: Long-term trends and fundamentals
Tools: Macroeconomic analysis, on-chain data (in crypto), trend-following strategies
Risk Level: Low to medium (depending on leverage)
Position traders adopt a long-term outlook, ignoring short-term market noise in favor of big-picture trends. This strategy is more passive and is ideal for traders who prefer less frequent transactions and a macroeconomic approach.
