Trading involves the buying and selling of financial instruments like stocks, commodities, currencies, or derivatives. There are several types of trading, each with distinct strategies. Day trading involves buying and selling assets within the same day. Swing trading targets short- to medium-term gains over several days or weeks. Scalping focuses on making small profits from tiny price changes, often with high frequency. Position trading is a long-term approach, holding assets for months or years. Algorithmic trading uses automated software to execute trades. Options and futures trading involve contracts rather than direct asset ownership. Each type suits different risk profiles and goals.
