#TradingTypes101

What type are you?

1. Day Trading

Day trading is the act of buying and selling assets within the same trading day.

Traders take advantage of short-term price volatility to make quick profits.

2. Swing Trading

Swing traders hold positions from a few days to a few weeks.

They look for medium-term trends to optimize profits during each price fluctuation.

This is a method that combines technical and fundamental analysis.

3. Scalping

Scalping is an ultra-short-term strategy, executing many small trades within a few minutes.

The goal is to make small but consistent profits, accumulating over time.

High risk, requiring very fast order processing and low trading costs.

4. Position Trading

This is the practice of holding positions for weeks, months, or even years.

Position traders are less affected by short-term volatility and focus on long-term trends.

They often use fundamental analysis to assess the true value of an asset.

5. Algorithmic Trading

Algorithmic trading uses computers and automated software to execute orders.

This strategy is based on quantitative models, often used by large investment funds.

It requires knowledge of programming and data analysis.

6. Copy Trading

Copy trading allows newcomers to replicate the trades of professional investors.

This method is popular on platforms like eToro or ZuluTrade.

While convenient, it also carries many risks if one does not fully understand the strategies.