#OrderTypes101

There are various types of trading based on time frame, strategy, and traded asset. Below, I present a general classification based on the time horizon:

📆 According to the time horizon:

-Scalping

Duration of trades: Seconds to minutes

Objective: Small profits accumulated throughout the day

Characteristics: High frequency, requires concentration, low spreads

Ideal profile: Traders with time and experience

-Day Trading

Duration: Within the same day (positions are not held overnight)

Objective: Take advantage of intraday movements

Characteristics: Requires technical analysis and emotional management

Ideal profile: Active traders with time to trade daily

-Swing Trading

Duration: Days to weeks

Objective: Capture short/medium-term trend movements

Characteristics: Less stress than day trading, more suitable for people with less time

Ideal profile: Investors with technical and fundamental knowledge

-Position Trading

Duration: Weeks to months (or even years)

Objective: Benefit from long-term trends

Characteristics: Based on fundamental and technical analysis

Ideal profile: Long-term investors

🧠 According to the strategy:

-Directional Trading: Betting that the price will rise (long position) or fall (short position).

-Trend Trading: Following a market trend until it shows signs of reversal.

-Contrarian Trading: Betting against the prevailing trend, looking for reversal points.

-News Trading: Based on economic, political, or financial events that move the market.

-Quantitative Trading (Quant Trading): Use of algorithms and mathematical models to make decisions.

-Algorithmic Trading (automatic): Trades executed through bots or automatic systems.

💰 According to the type of asset:

-Stock Trading

-Currency Trading (Forex)

-Cryptocurrency Trading

-Futures Trading

-Options Trading

-Commodities Trading