TYPES OF TRADING
Trading is of different types, depending on time duration, style, and market.
1. INTRADAY TRADING
- Positions are opened and closed within the same trading day.
- No positions are carried overnight.
- Goal: Small profits from small price movements.
2. SWING TRADING
- Positions are held for a few days to a few weeks.
- Captures profits from medium-term price swings.
- Goal: Profit from market swings.
3. POSITION TRADING
- Positions are held for weeks, months, or even years.
- Focus on long-term trends.
- Goal: Big moves in the market.
4. SCALPING
- Very short-term trading (seconds to minutes).
- Many trades in a day.
- Goal: Small profits, high frequency.
5. COPY TRADING
- Copy the trades of experienced and successful traders.
- Useful for beginners.
- Goal: Learn and earn by copying.
6. ALGO TRADING
- Trading is done using automated software or algorithms.
- Based on rules and strategies.
- Goal: Remove emotions and trade with speed and accuracy.
Key Note:
“Choose a style that fits your personality, time, and risk tolerance.”