#TradingTools101
Trading encompasses various approaches to profiting from financial market movements. The most common types differ primarily in their time horizons and strategies.
Day trading involves opening and closing positions within the same trading day, aiming to capitalize on small, intraday price fluctuations. It requires intense focus and quick decision-making. Scalping is an even shorter-term variation, with traders making numerous trades lasting seconds or minutes to snatch tiny profits.
Swing trading extends the time horizon to a few days or weeks, seeking to capture price "swings" within broader trends. Position trading is a long-term approach, holding assets for weeks, months, or even years to profit from significant, overarching market movements.
Other notable types include momentum trading, which involves riding strong price trends, and algorithmic trading, where computer programs execute trades based on predefined rules.
Plus500, a prominent online trading platform, primarily offers trading in Contracts for Difference (CFDs) across a wide range of assets like forex, commodities, shares, indices, ETFs, and options. While Plus500 is considered suitable for casual and swing trading due to its intuitive platform and diverse instruments, its spreads and lack of one-click trading make it less ideal for high-volume day trading. It also offers Plus500 Invest for trading real shares.
