Different Types of Trading
Scalping - (Scalping is the most short-term form of trading. Scalp traders only hold positions open for seconds or minutes at most. These short-lived trades target small intraday price movements. The purpose is to make lots of quick trades with smaller profit gains, but let profits accumulate throughout the day due to the sheer number of trades being executed in each trading session.)
Day Trading - (Day traders enter and exit their positions on the same day (unlike swing and position traders), removing the risk of any large overnight moves. At the end of the day, they close their position with either a profit or a loss. Trades are usually held for a period of minutes or hours, and as a result, require sufficient time to anylise the markets and frequently monitor positions throughout the day. Just like scalp traders, day traders rely on frequent small gains to build profits.)
Swing Trading - ( Swing traders typically hold positions for several days, although sometimes as long as a few weeks. Because positions are held over a period of time, to capture short-term market moves, traders do not need to sit constantly monitoring the charts and their trades throughout the day.)
Investing or Position Trading - (Position traders are focused on long-term price movement, looking for maximum potential profits to be gained from major shifts in prices. As a result, trades generally span over a period of weeks, months or even years. Position traders tend to use weekly and monthly price charts to analyse and evaluate the markets, using a combination of technical indicators and fundamental analysis to identify potential entry and exit levels.)
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