#TradingTypes101
There are several types of trading, including:
- *Day Trading*: Involves buying and selling financial instruments within a single trading day, with all positions closed before the market closes.
- *Swing Trading*: Entails holding positions for a shorter period than investing, but longer than day trading, typically from a few days to a few weeks.
- *Position Trading*: Involves holding positions for an extended period, often months or years, to capitalize on long-term trends.
- *Scalping*: A high-frequency trading strategy that involves making numerous small trades to take advantage of minor price movements.
- *Range Trading*: Involves identifying support and resistance levels in a market and buying or selling based on those levels.
Some popular trading strategies include ¹:
- *Technical Analysis*: Uses charts and technical indicators to predict future price movements based on past data.
- *Fundamental Analysis*: Examines economic and financial data to determine a security's intrinsic value.
- *News-Based Trading*: Reacts to news events and market sentiment to make trading decisions.
It's essential to understand these trading types and strategies to navigate financial markets effectively.