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  • 5 Types-of-Trading

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    Sujith Lal
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    This document defines four main types of trading: day trading, swing trading, position trading, and scalping. Day trading involves short-term trades within a single day. Swing trading holds positions for days or weeks. Position trading focuses on long-term fundamental analysis over months or years. Scalping executes rapid trades to capture small price movements. Each type has benefits like potential profits but also challenges such as increased risk and the need for significant time commitment.

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    This document defines four main types of trading: day trading, swing trading, position trading, and scalping. Day trading involves short-term trades within a single day. Swing trading holds positions for days or weeks. Position trading focuses on long-term fundamental analysis over months or years. Scalping executes rapid trades to capture small price movements. Each type has benefits like potential profits but also challenges such as increased risk and the need for significant time commitment.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    12 views5 pages

    5 Types-of-Trading

    Uploaded by

    Sujith Lal
    This document defines four main types of trading: day trading, swing trading, position trading, and scalping. Day trading involves short-term trades within a single day. Swing trading holds positions for days or weeks. Position trading focuses on long-term fundamental analysis over months or years. Scalping executes rapid trades to capture small price movements. Each type has benefits like potential profits but also challenges such as increased risk and the need for significant time commitment.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 5

    Types of Trading

    Introduction
    • Definition of trading

    • Importance of trading in the financial market


    Different Types of Trading
    • Day trading

    • Swing trading

    • Position trading

    • Scalping
    Key Characteristics
    Day Trading Swing Trading

    Short-term trades executed within a day with quick Trades held for days or weeks to capture price
    profit targets and tight risk management. swings, employing technical analysis and longer
    timeframe strategies.

    Position Trading Scalping

    Long-term trades based on fundamental analysis, Rapid-fire trades capturing small price movements
    aiming for substantial gains over weeks, months, or for quick profits, enabled by high trading volume
    even years. and tight spreads.
    Benefits and Challenges
    Benefits Challenges

    • Potential for higher profits and returns • Increased risk and volatility

    • Opportunity to take advantage of market • Time commitment and emotional pressure


    volatility

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