Day Trading: Involves buying and selling financial instruments within the same day, with the goal of making profits on small price changes. Day traders don’t hold positions overnight.
Swing Trading: A medium-term strategy where traders hold positions for several days or weeks, aiming to profit from expected "swings" in stock prices. Swing traders look for larger moves than day traders.
Scalping: A very short-term strategy that focuses on profiting from small price changes. Scalpers make multiple trades within minutes or hours and aim for small gains that accumulate over time.
Position Trading: A long-term approach where traders hold assets for weeks, months, or even years, focusing on fundamental analysis and major trends. It’s more like investing but with a trading mindset.
Momentum Trading: Traders buy assets showing an upward price trend and sell when they lose momentum. This style relies on following market sentiment and identifying assets that have strong momentum.
Options Trading: Involves trading options contracts, which give the right but not the obligation to buy or sell an asset at a specific price within a certain period. Options trading allows for different strategies like hedging, speculation, or income generation.
Algorithmic Trading: Uses computer programs to execute trades based on pre-set rules and market data. Algorithms can analyze and act on trends faster than human traders, often used in high-frequency trading.
Copy Trading/Social Trading: Involves replicating the trades of experienced traders, usually through online platforms. This can be a useful strategy for beginners or those who prefer a more hands-off approach.
Forex Trading: Involves trading currencies in the foreign exchange (forex) market. It’s highly liquid and often involves pairs like USD/EUR or GBP/JPY.
Crypto Trading: Involves buying and selling cryptocurrencies like Bitcoin, Ethereum, or altcoins. This type of trading can involve short-term speculation or long-term holds, with high volatility being common.