#TradingTypes101 🧠 1. Day Trading
Timeframe: Intraday (within one day)
Hold Time: Minutes to hours
Tools Used: Technical analysis, charts, volume indicators
Key Traits: Fast-paced, high-risk, requires focus and quick decision-making
Example: Buying a stock at 10:00 AM and selling it by 3:00 PM the same day.
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⌛ 2. Swing Trading
Timeframe: Short to medium term
Hold Time: Days to weeks
Tools Used: Technical analysis, sometimes news or fundamentals
Key Traits: Less intense than day trading; still active but more flexible
Example: Buying a cryptocurrency on Monday and selling it the following week when it peaks.
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🗓️ 3. Position Trading
Timeframe: Long term
Hold Time: Weeks to months (or even years)
Tools Used: Mostly fundamental analysis, macroeconomic trends, earnings reports
Key Traits: Less concerned with short-term fluctuations
Example: Buying stock in a growing company and holding it through quarterly earnings.
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🤖 4. Scalping
Timeframe: Ultra-short term
Hold Time: Seconds to minutes
Tools Used: High-frequency trading tools, technical indicators, Level 2 data
Key Traits: Very high volume of trades, small profits per trade
Example: Making dozens or hundreds of trades in a single day to capture small price changes.
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🌐 5. Algorithmic/Quantitative Trading
Timeframe: Varies (automated)
Hold Time: Seconds to months
Tools Used: Computer algorithms, data models, AI
Key Traits: Rules-based, uses programming and data science
Example: A bot programmed to buy and sell based on moving average crossovers.
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📰 6. News/Event-Based Trading
Timeframe: Short term
Hold Time: Hours to days
Tools Used: Economic calendars, news feeds
Key Traits: Reacts to breaking news, earnings reports, economic data
Example: Trading a stock right after its earnings report is released.
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💹 7. Copy/Social Trading
Timeframe: Depends on copied strategy
Hold Time: Varies
Tools Used: Social trading platforms (e.g., eToro)
Key Traits: Follows trades of experienced traders