Scalp Trading: aka Scalping is a short term strategy where traders and investors open many positions (trades) throughout the day with the intention of making collecting small amounts of profit as many times as possible throughout the day. Each trade usually lasts from a few seconds to no longer than a few minutes.
Day Trading: is a short term strategy where traders and investors enter (open) and exit (close) their trading positions (trades) within one (1) day with the intention of profiting from small price movements. This trading approach works for traders that can dedicate their time throughout the day to analyze and monitor the trades.
Swing Trading: is a mid term strategy where traders and investors hold the positions (trades) for a period of time with the intention of profiting from price swings. This type of traders identify a trend and then hold their positions while the trend is active for a period of time lasting from two (2) days and up to several weeks. This trading approach works for traders that dont have time to analyze the market throughout the day but can devote a few hours each day to check on their open positions.
Position Trading: is a long term strategy that is more like investing. Traders and investors enter and hold their positions (trades) from several months to several years. They disregard short term price movements and focus on the big picture in the long run.
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