#TradingTypes101 **Trading Types 101: A Beginner’s Guide**
Trading in financial markets involves various strategies tailored to different goals, timeframes, and risk levels. Here are the most common trading types:
1. **Day Trading** – Traders buy and sell assets within the same day, capitalizing on short-term price movements. Positions are closed before the market closes to avoid overnight risks.
2. **Swing Trading** – This involves holding assets for days or weeks, profiting from medium-term trends. Swing traders rely on technical and fundamental analysis.
3. **Position Trading** – A long-term approach where traders hold assets for months or years, focusing on macroeconomic trends.
4. **Scalping** – A high-frequency strategy where traders make dozens of small trades daily, aiming for tiny profits per trade that add up.
5. **Algorithmic Trading** – Uses automated systems to execute trades based on pre-set algorithms, removing emotional bias.
Each style suits different personalities and risk tolerances. Beginners should research and practice before committing to a strategy.