#TradingTypes101
Trading in financial markets can take many forms, each with its own strategies, timeframes, and risk levels. Here’s a quick guide to the most common types of trading:
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1. Day Trading
Definition: Buying and selling assets within the same trading day.
Goal: Profit from short-term price movements.
Timeframe: Minutes to hours.
Common Assets: Stocks, forex, crypto.
Tools Used: Technical analysis, real-time data, scalping strategies.
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2. Swing Trading
Definition: Holding positions for several days to weeks.
Goal: Capture short- to medium-term trends.
Timeframe: Days to weeks.
Ideal For: Traders who can’t monitor markets constantly but want more action than long-term investing.
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3. Scalping
Definition: Making many small trades to "scalp" tiny profits.
Timeframe: Seconds to minutes.
Requires: Fast execution, low fees, and high volume.
Risk: High due to frequent trading and slim margins.