#TradingTypes101 A difference from investment, where people try to gain 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 price fluctuations in other ways.
The different types of trades are typically classified using four different categories based on the time during which 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 typically open and close their trading positions 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 wish to take on the commitments involved in 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 a position for weeks, months, or even years while waiting for their opportunities to materialize.
