#TradingTypes101 In trading, there are different styles or types of trading, each with its own time frame, strategy, and level of risk. Here are the main ones explained:
1. Scalping (Ultra Short Term)
-Duration: Seconds to minutes.
Objective: Small profits from quick movements.
-Tools: 1m/5m charts, limit orders, Level II (order book).
-Risk: High (requires focus and speed).
-Example: Buy ETH at $3,000 and sell at $3,010 after a bounce at support.
2. Day Trading (Intraday)
-Duration: Minutes to hours (trades closed the same day).
-Objective: Take advantage of daily volatility.
-Tools: 15m/1h charts, RSI, MACD, volume.
- Risk: Medium-High.
- Example: Enter ETH on a breakout at $3,050 with a stop at $3,000 and take profits at $3,150.
Which one to choose?
-Beginners: Swing trading or position trading (less stress).
- Intermediate: Day trading with clear risk management.
- Advanced: Scalping or algorithmic trading.
Key advice: Try various styles on a demo account before risking real capital.