What are types of trading?

Positional Trading shares similarities with day trading but involves a slightly longer-term horizon. Traders in positional trading monitor a stock's momentum, technical indicators, and fundamentals before initiating a buy order, intending to hold the position for several days to weeks. The focus is on identifying and riding profitable trends.

Intraday Trading, or day trading, is a prevalent form of stock market activity where traders execute buy and sell orders within the same trading day, aiming to capitalize on short-term price fluctuations. This style necessitates quick decision-making and a keen eye for market trends, as positions are typically closed before the market closes.

Swing Trading is another strategy that aims to capture gains over a medium-term period, usually lasting from a few days to several weeks. Swing traders analyze charts and price patterns to identify potential turning points in the market, entering and exiting trades based on their analysis. This approach requires patience and a solid understanding of market dynamics.

Long-Term Trading, on the other hand, adopts a more passive stance, with traders holding positions for months or even years. Investors in this category are less concerned with daily price fluctuations and more focused on a company's fundamental value and long-term growth potential. They often ignore short-term market noise and rely on fundamental analysis.

Scalping is an aggressive trading style where traders seek to profit from tiny price movements, executing numerous trades throughout the day. Scalpers aim to capture a few pips or cents of profit on each trade, relying on high volume and tight spreads to accumulate substantial gains. This method demands lightning-fast reflexes and a deep understanding of market microstructure.