#TradingTypes101
"Trading Types 101" is a broad topic, but let's break down the essential types of trading based on different criteria.
I. Based on Time Horizon
This is one of the most fundamental ways to categorize trading:
* Day Trading:
* Description: Traders open and close positions within the same trading day, aiming to profit from small, short-term price fluctuations. They typically don't hold positions overnight to avoid overnight risk.
* Characteristics: High frequency, requires constant market monitoring, relies heavily on technical analysis.
* Risk Level: High.
* Time Commitment: High.
* Swing Trading:
* Description: Traders hold positions for a few days to several weeks, looking to capture "swings" in price within an overall trend. They aim for larger gains than day traders by riding a portion of a trend.
* Characteristics: Medium frequency, blends technical and fundamental analysis, may involve holding positions overnight or over weekends."Trading Types 101" is a broad topic, but let's break down the essential types of trading based on different criteria.
I. Based on Time Horizon
This is one of the most fundamental ways to categorize trading:
* Day Trading:
* Description: Traders open and close positions within the same trading day, aiming to profit from small, short-term price fluctuations. They typically don't hold positions overnight to avoid overnight risk.
* Characteristics: High frequency, requires constant market monitoring, relies heavily on technical analysis.
* Risk Level: High.
* Time Commitment: High.
* Swing Trading:
* Description: Traders hold positions for a few days to several weeks, looking to capture "swings" in price within an overall trend. They aim for larger gains than day traders by riding a portion of a trend.
* Characteristics: Medium frequency, blends technical and fundamental analysis, may involve holding positions overnight or over weekends."Trading Types 101" is a broad topic, but let's break down the essential types of trading based on different criteria.
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