#TradingTypes101

Here are 5 of the most popular types of trading, with a brief explanation of each:

Day Trading: This type relies on opening and closing positions very quickly within the same day, aiming to achieve small profits from immediate price fluctuations. It requires high concentration and continuous market monitoring.

Swing Trading: In this type, the trader holds the financial asset for days or weeks, targeting to benefit from medium-term price movements (swings). It is a good option for those looking for a balance between time spent and risk.

Long-term Holding (HODLing): The word "HODL" means "hold forever" or "hold your precious life." Here, the trader buys the asset and holds it for very long periods, often for years, believing in its future value in the long term. This type is ideal for investors who believe in the future of the assets they invest in.

Automated Trading: This involves the use of programs or trading robots based on specific algorithms to execute trades automatically. This type is excellent for those with a good understanding of programming who want to automate their trading processes.

Leveraged Trading: Leverage allows you to trade with amounts larger than your actual capital by borrowing funds. Although it may be tempting to achieve large profits, it is highly risky.