#TradingTypes101 Here you have a general guide with tips for different types of trading, depending on the style you choose. Each one has its characteristics, advantages, and risks:
🕐 1. Scalping (very short trades: seconds to minutes)
Characteristics:
✔️Many trades a day.
✔️Seeks small profits.
✔️Requires a lot of attention and speed.
📈Tips:
Use a broker with low commission and reduced spreads.
You need a fast and stable connection.
Rely on 1 or 5-minute charts.
Use indicators like VWAP, RSI, and fast moving averages.
Have clear entry and exit rules. Don’t improvise.
A lot of discipline: don’t chase losses.
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⏰ 2. Day Trading (trades lasting minutes to hours)
Characteristics:
Positions are not held overnight.
Based on technical analysis and daily news.
Tips:
Trade only when the market has high volatility (like at opening).
Learn to read volume, support/resistance, and candlesticks.
Have a daily trading plan.
Avoid overtrading.
Use tight stop losses to protect capital.
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📅 3. Swing Trading (days or weeks)
Characteristics:
Less stress than scalping or day trading.
Uses technical analysis and sometimes fundamental analysis.
Tips:
Analyze trends, chart patterns, and key levels on daily or 4-hour charts.
Monitor economic news that may affect your assets.
Use wide stop losses and take profits and be patient.
Diversify your trades.
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📆 4. Position Trading / Investment (months or years)
Characteristics:
Based on long-term fundamental analysis.
Fewer trades, but with capital committed for longer periods.
Tips:
Analyze financial indicators, macroeconomic, and sector news.
Use strategies like buy and hold, dividends, or value investing.
Diversify across various assets or sectors.
Avoid reacting to short-term movements.
Maintain proper risk management.