#TradingTypes101

Scalping

This is the fastest and most intense form of trading. Scalpers jump in and out of positions within seconds or minutes, trying to grab tiny profits from small price movements. It requires constant focus, lightning-quick decision-making, and a lot of trades per day. Think of it like high-speed chess with money.

Day Trading

Day traders open and close positions within the same trading day. They don’t hold positions overnight to avoid surprises when the market opens the next day. It still demands good timing and market awareness, but it’s a little less frantic than scalping. They rely heavily on charts, patterns, and technical analysis.

Swing Trading

Swing traders hold positions for several days or even weeks. Their goal is to catch larger price movements or trends, not tiny scalps. It’s less stressful than day trading because you don’t need to watch the market every second. Swing traders use both technical analysis (charts, indicators) and fundamental analysis (news, events).

Position Trading

This is long-term trading where you hold assets for weeks, months, or even years, betting on major trends or economic shifts. Position traders care more about big-picture market direction than short-term fluctuations. It requires patience and confidence in your research or belief in the asset.

Investing / HODLing

HODLers aren’t really traders in the traditional sense. They buy and hold crypto or other assets for years, through ups and downs, hoping for massive long-term gains. They care little about daily volatility and are in it for the long haul.

Main difference?

How long you hold your position and how active you are in the market.

Scalping = seconds/minutes, Day trading = hours, Swing = days/weeks, Position trading = months/years, and HODLing = sometimes forever.