The term "Types of Trading 101" likely refers to an introduction to different types of trading. Here’s a breakdown of common trading types, which are often classified by time horizon and strategy:
1. Scalping
Time Horizon: Very short (seconds to minutes).
Goal: To profit from very small price movements by executing a large number of trades throughout the day.
Characteristics: High frequency, requires intense focus, quick decision-making, and often relies on automated systems. Transaction costs (commissions and bid-ask spreads) are an important factor due to the large volume of trades.
2.