#TradingTypes101
Here’s a quick overview of common **trading types** in financial markets, perfect for beginners (#TradingTypes101):
### **1. By Holding Period**
- **Scalping** → Ultra-short-term (seconds/minutes), high-frequency trades.
- **Day Trading** → Positions opened/closed within the same day (no overnight risk).
- **Swing Trading** → Medium-term (days/weeks), capitalizing on price "swings."
- **Position Trading** → Long-term (months/years), based on fundamentals/macro trends.
### **2. By Strategy**
- **Trend Trading** → Follows market momentum (e.g., "buy high, sell higher").
- **Range Trading** → Buys at support, sells at resistance in sideways markets.
- **Arbitrage** → Exploits price differences of the same asset across markets.
- **Algorithmic Trading** → Uses automated systems/quant models (HFT, etc.).
### **3. By Market**
- **Stocks** → Shares of companies (e.g., equities).
- **Forex (FX)** → Trading currency pairs (e.g., EUR/USD).
- **Options/Futures** → Derivatives (leveraged contracts).
- **Crypto** → Volatile digital assets (e.g., Bitcoin).
### **4. Risk-Based Styles**
- **Discretionary Trading** → Human decision-driven.
- **Systematic Trading** → Rule-based (backtested strategies).
### **Key Considerations**
- **Liquidity**: How easily you can enter/exit trades.
- **Volatility**: Price fluctuation risks/opportunities.
- **Leverage**: Borrowed capital (amplifies gains/losses).
Would you like a deep dive into any specific type? 🚀