#TradingTypes101 refers to the various methods and strategies employed by traders to buy and sell assets. These can be categorized based on trading strategies, timeframe, analysis technique, and asset class.
## Types of Trading Based on Strategy
- *Momentum Trading*: Involves buying and selling based on the strength of recent price trends, seeking to profit from stocks moving in a particular direction ¹.
- *Mean Reversion Trading*: Focuses on stocks deviating from their historic mean price, anticipating a reversal to the mean value.
## Types of Trading Based on Timeframe
- *Scalping*: Involves making small profits from multiple trades throughout the day, exploiting the bid-ask spread ¹.
- *Day Trading*: Entails buying and selling within the same trading day, taking advantage of small price movements.
- *Swing Trading*: Involves holding positions for days, weeks, or months, aiming to profit from price swings.
- *Positional Trading*: A long-term approach, holding positions for weeks, months, or years.