#TradingTypes101 A unlike investment, where individuals try to make profits by holding assets for long periods of time, trading involves trying to make profits by exchanging assets over short periods of time, usually hours, days, or weeks.
Some traders follow the mantra "buy low, sell high," but others use financial products or strategies that allow them to take advantage of fluctuations in asset prices in other ways.
Different types of trades are typically classified using four different categories based on the time the trader intends to hold their position:
Scalping is the shortest form of trading and lasts seconds, minutes, and occasionally hours.
Day trading gets its name from the fact that day traders generally open and close their trades within the same day.
Swing trading involves holding positions for days, weeks, or sometimes months. For those with a fixed job or who do not want to take on the commitments of opening and closing trades on the same day, swing trading can be an ideal option.
Position trading is the closest to investing. Position traders can hold an asset or position for weeks, months, or even years while waiting for their opportunities to materialize.
