#TradingTypes101 By Time Frame
1. Scalping
Time Frame: Seconds to minutes.
Goal: Small profits from rapid trades, many times a day.
Key Traits: High frequency, very short holding periods, requires strong technical skills.
Used By: Day traders with fast execution tools.
Risk: High transaction costs, requires precision.
2. Day Trading
Time Frame: Within the same day.
Goal: Capitalize on intraday price movements.
Key Traits: No overnight positions, high attention to charts.
Tools Used: Technical analysis, real-time news, volume indicators.
3. Swing Trading
Time Frame: Days to weeks.
Goal: Capture “swings” in market trends.
Key Traits: Less intense than day trading, but needs discipline.
Used By: Those with full-time jobs or part-time traders.
4. Position Trading / Investing
Time Frame: Weeks to months (or even years).
Goal: Ride large trends or hold for long-term growth.
Key Traits: Relies more on fundamental analysis than technicals.
🔹 By Strategy or Method
5. Trend Following
Trade in the direction of the prevailing trend.
Uses indicators like Moving Averages, RSI, MACD.
Works well in strongly directional markets.
6. Mean Reversion
Assumes prices revert to the average over time.
Uses Bollinger Bands, RSI, or support/resistance.
7. Breakout Trading
Enter trades when price breaks out of key levels.
High volatility strategy, often used with volume analysis.
8. Range Trading
Trade between support and resistance levels.
Common in sideways or consolidating markets.
By Instrument or Market
9. Spot Trading
Buy and sell the actual asset (e.g., BTC/USDT).
No leverage, lower risk than derivatives.
Binance offers this for hundreds of crypto pairs.
10. Futures Trading
Trade contracts to buy/sell assets at a future price.
Can use leverage (up to 125x on Binance).
Allows long and short positions.
High risk due to margin/liquidation.
11. Margin Trading
Borrow funds to increase position size.
Interest is paid on borrowed capital.
Binance offers isolated and cross margin accounts.
