Types of Trading

 

1. Types of Trading

Day Trading

• Timeframe: Seconds to hours, all within a single day.

• Goal: Profit from short-term price movements.

• Markets: Stocks, options, forex, crypto.

• Tools: Real-time charts, indicators, Level 2 data, news feeds.

Swing Trading

• Timeframe: Days to weeks.

• Goal: Capture medium-term trends.

• Ideal for: People who can’t watch markets all day but still want active trading.

• Tools: Technical + fundamental analysis.

Position Trading / Long-Term Investing

• Timeframe: Months to years.

• Goal: Ride major trends or growth stories.

• Tools: Fundamental analysis, macroeconomic data, earnings reports.

 Scalping

• Timeframe: Seconds to minutes.

• Goal: Tiny profits, high frequency.

• Needs: Low latency, fast execution, and a lot of screen time.

2. Analysis Techniques

Technical Analysis

• Uses charts, patterns, and indicators.

• Popular Tools:

  • Moving Averages (MA, EMA)

  • RSI (Relative Strength Index)

  • MACD (Moving Average Convergence Divergence)

  • Support/Resistance levels

  • Fibonacci Retracement

Fundamental Analysis

• Focus on financial health, earnings, macro trends.

• More used in long-term investing or swing trades.

Sentiment Analysis

• News, social media, fear & greed index, volume surges.

3. Tools & Platforms

Charting Tools

• TradingView (most popular for TA)

• ThinkorSwim (by TD Ameritrade)

• MetaTrader 4/5 (Forex)

• TrendSpider (AI-powered)

Brokerages

• Robinhood / Webull (user-friendly, basic)

• Interactive Brokers (pro features)

• Binance / Coinbase / Kraken (crypto)

• MetaTrader (forex)

News & Alerts

• Benzinga Pro

• Seeking Alpha

• Twitter (X) — for real-time sentiment

• Economic Calendars — e.g., on Forex Factory

4. Risk Management

This is crucial — trading without risk management = gambling.

• Risk per trade: 1–2% of your capital

• Stop-loss and Take-profit levels

• Position sizing based on volatility

• Risk/Reward ratio: Aim for 1:2 or better