#TradingTypes101
Gemini
2.5 Flash
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#TradingTypes101
"Trading Types 101" is a great starting point for anyone looking to understand the world of financial markets. Here's a breakdown of common trading types, categorized by their time horizon and approach:
Trading Styles by Time Horizon
These categories primarily define how long a trader holds a position:
Scalping:
Time Horizon: Minutes to seconds.
Objective: To make many small profits from tiny price movements throughout the day. Scalpers often execute dozens or even hundreds of trades daily.
Skills Needed: Extremely fast decision-making, excellent focus, strong understanding of order flow and market microstructure. Low transaction costs are crucial due to the high volume of trades.
Day Trading:
Time Horizon: Within a single trading day (positions are closed before the market closes).
Objective: To capitalize on short-term price fluctuations. Day traders avoid overnight risks.
Skills Needed: Strong technical analysis skills, discipline, quick reaction to market news and events. Requires dedicated time to monitor charts.
Swing Trading:
Time Horizon: Days to weeks.
Objective: To profit from "swings" or medium-term price trends. Swing traders identify potential turning points in the market.
Skills Needed: Both technical and fundamental analysis, patience to hold positions, and the ability to manage risk over a slightly longer period. This is often a good option for those who can't monitor markets constantly.$SOL