#TradingTales101

1

Time Frame: Intraday (same day)

Objective: Capitalize on small price movements.

Tools: Technical analysis, real-time news, indicators.

Risks/Rewards: High risk, high intensity; potential for fast gains or losses.

2

Time Frame: Days to weeks

Objective: Capture short- to medium-term trends.

Strategy: Combines technical and sometimes fundamental analysis.

Best For: Those who want to trade actively without being glued to the screen.

3

Time Frame: Weeks to months (sometimes years)

Objective: Ride long-term trends.

Tools: Fundamental analysis, macro trends, charts.

Ideal For: Patient traders who avoid short-term noise.

4

Time Frame: Seconds to minutes

Objective: Profit from very small price changes.

Requires: Lightning-fast execution, low transaction costs.

Note: Demands intense focus and discipline.

5. Algorithmic (Algo) Trading

Time Frame: Automated, varies

Objective: Use code and algorithms to execute trades.

Used By: Hedge funds, institutions, quants.

Skills Needed: Programming, quantitative analysis.

6. Momentum Trading

Focus: Stocks or assets that are moving strongly in one direction.

Time Frame: Varies (often short-term)

Key Strategy: “Buy high, sell higher.”

7. News-Based Trading

Catalyst: Market-moving news or events (earnings, Fed announcements, etc.)

Risks: High volatility.

Tools: News feeds, economic calendars.