#TradingTypes101 #TradingTypes101
Trading comes in various forms, each suited to different goals, risk tolerances, and time commitments. The main types include day trading, swing trading, position trading, and scalping.
Day trading involves buying and selling assets within a single trading day, relying on short-term market movements. It's fast-paced and requires constant attention. Swing trading captures gains over several days or weeks, analyzing trends and price patterns. It's less intense than day trading but still active.
Position trading is a long-term approach where traders hold positions for weeks, months, or even years, relying on fundamental analysis and major trends. It resembles investing more than active trading. Scalping is the quickest style—traders make dozens or hundreds of trades per day to "scalp" small profits from tiny price changes.
Each style demands different skills, tools, and temperament. Choosing the right type depends on your lifestyle, strategy, and tolerance for risk.