#TradingTypes101 Types of Trading by Approach/Strategy:
* Momentum Trading:
* Essence: Trading based on the price momentum of a stock, seeking to enter when a trend is strong and exit when it shows signs of slowing down.
* Objective: To profit from established price trends.
* Characteristics: Often involves identifying stocks that are moving strongly in one direction (upward or downward) and capitalizing on that movement.
* Technical Trading:
* Essence: Analyzing price charts, patterns, and indicators to predict future price movements.
* Objective: To identify entry and exit points based on historical price action.
* Characteristics: Largely relies on technical analysis tools such as moving averages, RSI, MACD, support and resistance levels, etc.
* Fundamental Trading:
* Essence: Analyzing a company's financial health, industry trends, and economic factors to determine its intrinsic value.
* Objective: To identify undervalued or overvalued assets based on their fundamentals.
* Characteristics: Involves studying financial statements, news, economic reports, and industry outlooks. Often associated with position trading or long-term investing.
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