#TradingTypes101 # **Types of Trading**

In the financial world, there are different **trading styles** based on time frame, strategy, and trader profile. Here I explain the main ones:

### **1. According to Time Frame**

- **Scalping (Ultrashort term)**

- Trades that last **seconds or minutes**.

- Objective: To gain small profits on minimal movements.

- High number of trades per day.

- **Day Trading (Intraday)**

- Positions are opened and closed **on the same day**.

- No overnight positions (from one day to the next).

- Based on technical analysis and short-term news.

- **Swing Trading (Medium term)**

- Trades last **days or weeks**.

- Aims to take advantage of intermediate trends.

- Combines technical and fundamental analysis.

- **Position Trading (Long term)**

- Trades can last **months or years**.

- Based on fundamental analysis and macroeconomic trends.

- Less stress, but requires more patience.

### **2. According to Strategy**

- **Trend Trading**

- Follow the market direction (bullish or bearish).

- "The trend is your friend".

- **Range Trading**

- Trade in sideways markets, buying at support and selling at resistance.

- **Breakout Trading**

- Enter when the price breaks a key level (support/resistance).

- **Reversal Trading**

- Attempt to capture trend changes (e.g.: buying at extreme lows).

- **News Trading**

- Based on economic events, earnings reports, etc.

### **3. According to Market**

- **Forex (Currencies)**

- **Stocks**

- **Cryptocurrencies**

- **Options and Futures**

- **Commodities (Gold, Oil, etc.)**

Each style has its advantages and risks. The important thing is to choose one that fits your personality, available time, and risk tolerance.