#TradingTypes101
A simplified guide to the most popular trading methods and strategies used in financial markets.
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📈 1. Day Trading
Definition: Buying and selling assets within the same day.
Goal: To achieve profits from short price movements.
Common tools: Stocks, foreign currencies (Forex), cryptocurrencies, contracts for difference.
Time frame: Minutes to hours.
Suitable for: Those with enough time and ability to make quick decisions.
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📉 2. Swing Trading
Definition: Holding positions for several days to weeks.
Goal: To benefit from medium-term trends.
Analysis used: Technical analysis, chart patterns.
Suitable for: Those who can monitor the market daily without committing to trading all day.
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⏳ 3. Position Trading
Definition: Opening long-term positions that may last for weeks or months.
Focus: On economic factors and fundamental analysis.
Time frame: Weeks to months, and sometimes years.
Suitable for: Investors who prefer patience and a long-term vision.
💹 4. Scalping
Definition: Making very short trades with the aim of achieving small, repeated profits.
Number of trades: Can reach hundreds daily.
Time frame: Seconds to minutes.
Suitable for: Those who are quick in decision-making and use advanced technical tools.