#CEXvsDEX101 Trading is the process of buying and selling financial assets with the aim of making profits. Trading strategies vary based on timeframes and the risks that traders can take, making the choice of the right type essential to ensure success in this field.
📌 The main types of trading:
🔹 Day Trading: It relies on executing and closing trades within the same day, requiring close market monitoring and quick decision-making.
🔹 Swing Trading: It aims to achieve profits from price movements over days or weeks, relying on technical and fundamental analysis to determine market trends.
🔹 Position Trading: It relies on holding assets for long periods, extending to months or years, making it suitable for investors focusing on sustainable growth.
🔹 Scalping: It is characterized by executing a large number of quick trades within minutes or seconds, aiming to achieve small but repeated profits.
🔹 Margin Trading: It allows traders to use borrowed funds to maximize purchasing power, increasing profit opportunities but carrying higher risks.
🛠 How to choose the right type of trading?
Choosing the ideal type depends on several factors, including the level of experience, the time available to monitor the market, and the ability to bear risks. Those who prefer quick trades can