#TradingTypes101
Here's a simple guide to Trading Types 101 â the basic types of trading in financial markets, including stocks, crypto, forex, and more:
đ§ 1. Based on Time Frame
đ Day Trading
Hold time: Seconds to a day
Goal: Profit from short-term price moves
Needs: Quick decision-making, charts, news, high focus
đ Swing Trading
Hold time: A few days to weeks
Goal: Catch medium-term trends
Needs: Technical + fundamental analysis
đ Position Trading
Hold time: Weeks to months (sometimes years)
Goal: Long-term trend following
Needs: Patience, big-picture view
đ» Scalping
Hold time: Seconds to minutes
Goal: Profit from tiny price moves, often many trades a day
Needs: Speed, low fees, technical edge
đ 2. Based on Strategy
đ Technical Trading
Based on charts, indicators (RSI, MACD, etc.)
Focuses on patterns and price action
đ Fundamental Trading
Based on company/asset value: earnings, news, economic data.
Often used in stock and forex trading
đ§Ș Quantitative (Algo) Trading:
Uses mathematical models and bots
Often used by hedge funds and advanced traders
đïž 3. Based on Market Movement
đą Long Trading
Buying low to sell high
đŽ Short Trading
Selling high to buy low (betting price will drop)
Not available in all markets (e.g., crypto sometimes limited)
đĄ Bonus: Specialized Types
Copy Trading / Social Trading â Follow expert traders
News Trading â React to news releases instantly
Options Trading â Trade rights to buy/sell at specific prices
Arbitrage Trading â Profit from price differences across markets
HODLing â Common in crypto: Buy and hold for long term