#TradingTypes101 Your Guide to Understanding Types of Trading

1. Day Trading

⏰ Timeframe: Same day (opening and closing the trade on the same day)

📊 Style: Fast and multiple trades to take advantage of small price movements

⚠️ Risks: Very high

🧠 Requires: Real-time monitoring, quick decisions, direct analysis tools

2. Swing Trading

⏰ Timeframe: From several days to weeks

📊 Style: Taking advantage of short to medium-term trends

⚠️ Risks: Medium

🔍 Requires: Strong technical analysis and understanding of market patterns

3. Position Trading

⏰ Timeframe: Weeks to months or even years

📊 Style: Investing in long-term trends

⚠️ Risks: Relatively lower than other types

📚 Focuses on: Fundamental and economic analysis and company performance

4. Scalping

⏰ Timeframe: Seconds to minutes

📊 Style: Executing a large number of trades to achieve very small profits

⚠️ Risks: Very high

⚙️ Requires: Speed in execution, low price spreads, low commissions

5. Algorithmic Trading

🤖 Style: Using software to automatically execute trading strategies

💼 Used by: Professionals and large institutions

⚠️ Risks: Depend on the quality of the model and market speed