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Trading Types 101

Trading involves buying and selling financial instruments like stocks, currencies, or commodities. Common types include day trading, where positions are opened and closed within a single day, and swing trading, which holds trades for several days to capitalize on short-term trends. Scalping involves rapid trades for small profits, often within minutes. Position trading is long-term, based on fundamental analysis. Algorithmic trading uses automated systems to execute trades. Options and futures trading deal with derivatives. Each style suits different risk levels, time commitments, and strategies. Understanding these types is key to choosing a method that fits your goals.