Trading offers various strategies to interact with financial markets. In #TradingTypes101, we explore the key differences. Day trading involves opening and closing positions within the same day, avoiding holding open trades overnight to minimize risks. Scalping is even faster, seeking small gains from minimal movements in a matter of seconds or minutes, accumulating multiple trades.
On the other hand, swing trading takes a longer-term perspective, holding positions for days or weeks to capture larger price movements. Each type requires different levels of attention, risk management, and tolerance to volatility. Choosing the right strategy depends on the trader's lifestyle, capital, and risk profile.