#TradingTypes101 Opening and closing trades **within the same day** without leaving them open overnight.
- Relies on short-term price movements (minutes or hours).
- Requires continuous market monitoring.
## 2. **Swing Trading**
- Holding trades for several **days to weeks** to benefit from medium-term fluctuations.
- Relies on both technical and fundamental analysis.
## 3. **Position Trading**
- Long-term investment (weeks to years) based on **fundamental market trends**.
- Less frequent than other types, similar to traditional investing.
## 4. **Scalping**
- Making small profits from **a large number of trades** throughout the day (seconds to minutes).
- Relies on spreads and high liquidity.
## 5. **Algorithmic Trading**
- Using computer programs to execute trades based on **pre-programmed strategies**.
- Includes high-frequency trading (HFT).
### Note:
- Each type requires a **different strategy** and appropriate risk management.
- It is advisable for beginners to start with swing or position trading to reduce risks.