#TradingTypes101 By Timeframe:
Day Trading:
Involves buying and selling assets within the same trading day, aiming to profit from short-term price fluctuations.
Swing Trading:
Focuses on capturing profits from larger price swings over a period of days to weeks.
Position Trading:
Holds assets for extended periods, potentially months or years, aiming to capitalize on long-term market trends.
Scalping:
Involves making numerous small profits from very short-term price fluctuations, often within seconds or minutes.
2. By Strategy:
Fundamental Trading:
Analyzes a company's financial health, industry trends, and other fundamental factors to determine investment decisions.
Technical Trading:
Uses historical price data and trading volumes to identify patterns and predict future price movements.
Algorithmic Trading:
Employs computer algorithms to automatically execute trades based on pre-programmed rules.
Momentum Trading:
Seeks to profit from the momentum of a stock's price movement, entering positions when it's accelerating in a particular direction.
3. Other Types:
Arbitrage Trading: Exploits price discrepancies in different markets to make a profit.
High-Frequency Trading: Uses sophisticated technology to execute trades at extremely high speeds, often milliseconds, according to the N26 website.
Social Trading: Follows the trades and strategies of other experienced traders.
News Trading: Reacts to news events and market announcements to make trading decisions.