#TradingTypes101 Did you know that there isn't just one way to trade? 📈 The world of financial markets offers various approaches, and finding yours is key to your success.
Today we start with #TradingTypes101! Here are the most common ones based on the time horizon:
1️⃣ Scalping: The fastest! Trades that last from seconds to a few minutes. It seeks small profits repeatedly on very short movements. Requires a lot of concentration, discipline, and time in front of the screen.
2️⃣ Day Trading: Trades that are opened and closed within the same trading day. It avoids the risk of leaving positions open overnight. You need to dedicate time during the day to analyze and execute.
3️⃣ Swing Trading: Focuses on medium-term price movements, keeping trades open from days to weeks. It seeks to capture "swings" or impulses within a trend. Requires less time in front of the screen than scalping or day trading, but more patience.
4️⃣ Position Trading (or Long-Term Investment): Trades that can last weeks, months, or even years. It is based on long-term fundamental and technical analysis, seeking to benefit from large trends. It requires the least amount of time in front of the screen daily, but the most patience and capital to withstand fluctuations.
Each style has its pros and cons, and what works for one may not work for another. 🧐 Your choice should depend on your personality, available time, initial capital, and risk tolerance.
👉 Which of these types do you find most interesting or best fits your lifestyle? Leave it in the comments!
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