#TradingTypes101

Intraday/Day Trading:

Involves buying and selling assets within the same day to profit from short-term price fluctuations.

Swing Trading:

Captures short-term and medium-term price movements, holding positions for a few days or weeks.

Position Trading:

Focuses on long-term trends, holding positions for months or even years.

Scalping:

Involves very short-term trades, aiming to profit from tiny price changes, often holding positions for seconds or minutes.

By Approach:

Algorithmic Trading:

Uses computer programs to execute trades based on predefined rules and strategies.

Momentum Trading:

Capitalizes on the direction and speed of price movement, predicting which way the market is likely to move.

Fundamental Trading:

Focuses on the intrinsic value of an asset, considering factors like company financials, industry trends, and economic indicators.

Technical Trading:

Analyzes historical price data and trading volumes to identify patterns and predict future price movements.

Arbitrage Trading:

Exploits price differences between different markets or exchanges for a profit.

Contrarian Trading:

Goes against the prevailing market sentiment, often buying when others are selling and selling when others are buying.

News Trading:

Reacts to news events and announcements that can impact asset prices.