Overview of Trading Styles
When it comes to trading financial markets, there are various styles that traders can adopt depending on their goals, time commitment, and risk tolerance. Each trading style has its own unique approach to entering and exiting trades, time horizon, and level of market engagement. The most common trading styles include day trading, swing trading, scalping, and position trading. Here’s a breakdown of each:
1. Day Trading
Definition: Day trading involves buying and selling financial instruments within the same trading day, closing all positions before the market closes. The goal is to profit from small price movements in highly liquid markets.
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