#TradingTypes101 In financial markets, your trading approach defines your category as a trader. Scalping represents the ultimate expression of speed: it is based on executing dozens of trades in minutes or even seconds, capturing microscopic price movements. This style demands constant connection to the charts, ultra-low commissions, and nerves of steel, as a split-second error can wipe out hours of profit.

Those seeking a less accelerated pace often adopt day trading. Here, positions are opened and closed within the same day, using timeframes of 15 minutes to 4 hours. The key advantage is avoiding the risks of overnight gaps, but it requires mastery in reading indicators like volume or RSI to identify precise entries and exits.

Swing trading attracts patient strategists. It operates in trends that last days or weeks, combining technical analysis like price channels or moving averages with fundamental catalysts. Although it reduces time spent in front of screens, it demands tolerance for sharp corrections without falling into panic. A step further is position trading, where trades last months or years. These investors ignore market noise and focus on macro factors: institutional adoption, technological cycles, or regulations.

In the crypto ecosystem, a unique profile stands out: the HODLer. Their philosophy is to accumulate assets with long-term conviction, considering downturns as opportunities. It is not passivity, but a psychological bet where patience outweighs volatility. Each style has distinct tools, timelines, and risks. The key is to choose the one that aligns with your capital, your available time, and your emotional temperament.