#TradingTypes101 Trading refers to the buying and selling of financial instruments such as stocks, bonds, commodities, and currencies with the aim of making a profit. There are several types of trading, each with its own strategies and timeframes. Day trading involves buying and selling assets within the same day to capitalize on short-term price movements. Swing trading focuses on capturing gains over a few days or weeks based on market trends and patterns. Scalping is a fast-paced strategy where traders make many small profits throughout the day. Position trading is a longer-term strategy where traders hold assets for weeks, months, or even years based on fundamental analysis. Algorithmic trading uses computer programs to execute trades at high speeds based on predefined rules. Options and futures trading involve contracts that derive value from an underlying asset. Each type requires different skills, risk tolerance, and market understanding, making it essential for traders to choose one that fits their goals.