#MyTradingStyle
In financial trading, there are generally four main trading styles you’ll adopt: position trading, swing trading, day trading, and scalping. There are more categories or subcategories, of course, but for our purposes, let’s focus on these four.
What distinguishes these four are the different timeframes they entail. That’s how it appears on the surface. But by changing the timeframe or duration, these four trading styles also require different time commitments, research and preparation, knowledge and skills, financial risk, and, ultimately, temperament or “personality.” So, in other words, there’s more that distinguishes these trading styles besides trade duration.
As a novice trader, you may not know which trading style is best for you. However, as you gain experience, you will develop a better understanding of which style is most compatible with your personality. This means choosing a style that aligns with your strengths, time constraints, risk tolerance, and capital resources. Let’s start off by exploring the differences between each style.