#TradingTypes101
The initiative #TradingTypes101 explains that in the world of trading there are various styles, each with its own logic and level of risk. Scalping and Day Trading strategies operate in very short time frames, such as 1 or 5 minutes. For example, the day trader opens and closes their trades on the same day to avoid the risks associated with keeping positions open overnight, seeking quick profits from small market movements.
Swing Trading involves holding positions for days or weeks, aiming to take advantage of medium-term trends. This approach requires patience and skill to identify the best entry and exit points, based on technical analysis and occasionally fundamental analysis. On the other hand, Position Trading is a long-term strategy, where decisions are based on the solid principles of the asset, ignoring short-term volatility to focus on sustained growth.