#TradingTypes101
Let's break down the different types of trading:
*Trading Types*
- *Stock Trading*: Buying and selling shares of publicly listed companies, aiming to profit from price fluctuations.
- *Forex Trading*: Trading currencies on the foreign exchange market, speculating on exchange rate fluctuations.
- *CFD Trading*: Contract for Difference trading, speculating on price movements of underlying assets without owning them.
*Trading Styles*
- *Day Trading*: Buying and selling securities within a single trading day, closing positions before market close.
- *Swing Trading*: Holding positions for shorter periods, typically from days to weeks.
- *Long-term Trading*: Holding positions for extended periods, often months or years.
- *Scalping*: Making multiple small trades, taking advantage of small price movements.
*Analysis Types*
- *Technical Analysis*: Studying statistical trends, price movements, and volume to predict future price movements.
- *Fundamental Analysis*: Evaluating a company's financials, industry, and economic factors to determine its value ¹.
*Other Key Concepts*
- *Bull Market*: A market condition where prices are rising, and optimism is high.
- *Bear Market*: A market condition where prices are falling, and pessimism is high.
- *Long Position*: Buying a security with the expectation of selling it at a higher price.
- *Short Position*: Selling a security with the expectation of buying it back at a lower price ¹.