#TradingTypes101

1. Day Trading

• Time Frame: Intraday (within the same day)

2. Swing Trading

• Time Frame: Several days to weeks

3. Scalping

• Time Frame: Seconds to minutes

• Goal: Profit from tiny price changes (many trades per day)

• Common Markets: Forex, futures, highly liquid stocks

• Requirements: Fast execution, low fees, strict discipline

Example: Making 20+ trades per day for 1-2 cent gains each.

4. Position Trading

• Time Frame: Weeks to months (or even years)

• Goal: Ride major trends or macroeconomic cycles

• Style: Long-term technical or fundamental analysis

• Traits Needed: High patience, market conviction

Example: Holding Tesla for 6 months based on long-term growth.

5. Algorithmic / Quantitative Trading

• Time Frame: Varies (milliseconds to weeks)

6. News-Based / Event-Driven Trading

• Time Frame: Minutes to weeks depending on news

7. Options Trading

• Time Frame: Days to months (depending on expiration)