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🔥Day Trading🤑
Day trading involves buying and selling stocks in one day and not leaving positions open after trading sessions. The day trading method requires a long time in front of trading screens, and you must have regular market analysis and the ability to follow market movements instantly.
The trader makes a profit by taking advantage of small movements in the net asset value of the stock, and this type is considered relatively low risk.
🔥Scalping🤑
It is also called scalping trading, because of the rapid pace of buying and selling, and a trader may close positions within seconds or minutes of opening them, as traders hold their positions for shorter periods and trade at a higher frequency with the aim of amassing small, frequent profits. Similar to day trading, this trading requires an understanding of technical analysis, knowledge of the market, proficiency and awareness of price trends.
Typically, trading platforms charge higher fees for transactions with this type of trading.
🔥Swing Trading🤑
Swing trading is the act of holding securities for several days, based on price movements. Swing traders aim to make profits by taking advantage of price fluctuations based on their analysis of the direction of stock or cryptocurrency prices.
Swing trading relies on the use of technical and fundamental analysis to search for trading opportunities and study price trends.
🔥Position Trading🤑
Position trading is the act of buying and holding financial assets for long periods of time, which may last for weeks or years. It is called a buy-and-hold strategy and requires traders to hold onto their assets for a long period of time and ignore price movements in the market.
The main advantage of position trading is that it requires less time and attention compared to day trading or swing trading. The main disadvantage is that you miss short-term price spikes that could bring quick profits.
🤑✅How to choose the right trading style?🤔
After learning about the most important types of trading, the most important question remains: which of these methods is best for me?
Indeed published a report to help readers choose the most suitable trading style for them. The report indicated that finding the right trading style for the investor is of utmost importance. Choosing the type of trading depends on your risk appetite, time frame, ability to conduct fundamental or technical analysis, as well as your psychological state when trading. The report identified several questions that you should know the answers to before choosing your trading style.
Do you only trade once a day?
Are you quick witted?
Are you patient and calm?
Answering these questions will help you determine the type of trading that suits your personality. For example, if you have plenty of time in the morning and some knowledge of technical and fundamental analysis, you can choose the daily trading style.
If you have the ability to make quick decisions, then the swing trading style will be the most suitable for you, as this type requires making different trades separated by seconds or minutes, and exiting the trade immediately if you think it is going against you.
Position trading is a more relaxed style of trading, and is suitable for those traders who do not want to monitor the markets closely on a daily basis.
Finally, the report advises the investor, after becoming familiar with the different types of trading methods and the personal characteristics of each, to try them all on a demo account to make sure which method is most suitable for your personality.
