In the world of finance, trading refers to buying and selling financial assets like stocks, currencies, commodities, or cryptocurrencies with the goal of making a profit. There are several types of trading, each with its own strategies, timeframes, and risk levels. Below is a quick guide to the most common types of trading.
1. Day Trading
Day traders open and close their positions within the same trading day. 🔹 Goal: Profit from short-term price movements. 🔹 Requires: Quick decision-making, technical analysis skills, and constant market monitoring. 🔹 Timeframe: Minutes to hours — no positions held overnight.
2. Swing Trading
Swing traders hold their trades for several days or even weeks. 🔹 Goal: Capture price swings and medium-term market trends. 🔹 Best for: People who can’t monitor the market all day