#TradingTypes101
#TradingTypes101 is a great hashtag to explore the foundational styles of trading in financial markets. Hereโs a quick overview of the most common trading types:
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๐ 1. Day Trading
Timeframe: Intraday (no overnight positions)
Goal: Profit from small price movements
Assets: Stocks, forex, crypto, futures
Tools: Technical analysis, real-time data, Level II quotes
Key Trait: Fast decision-making, discipline
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๐ 2. Swing Trading
Timeframe: Days to weeks
Goal: Capture short- to medium-term trends
Assets: Stocks, options, forex, crypto
Tools: Technical + fundamental analysis
Key Trait: Patience, trend spotting
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๐ 3. Position Trading
Timeframe: Weeks to months (sometimes years)
Goal: Ride longer-term trends
Assets: Stocks, ETFs, commodities, etc.
Tools: Fundamental analysis, macroeconomic trends
Key Trait: Long-term conviction
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๐ค 4. Algorithmic Trading
Timeframe: Varies (microseconds to long-term)
Goal: Automate trading strategies
Assets: Mostly in high-liquidity markets
Tools: Code (Python, R, etc.), APIs, backtesting
Key Trait: Quantitative, data-driven
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๐ผ 5. Scalping
Timeframe: Seconds to minutes
Goal: Profit from very small moves
Assets: Forex, futures, stocks
Tools: Fast execution, low-latency platforms
Key Trait: Speed, precision
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๐ 6. Copy/Social Trading
Timeframe: Depends on the copied trader
Goal: Mimic trades of experienced traders
Assets: All markets (depends on platform)
Tools: Social trading platforms (e.g., eToro)
Key Trait: Learning through following
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Want a visual infographic, trading style quiz, or help finding which type suits you best?