Different types of trading
Day trading
This is a type of trading where you buy and sell stocks within the same day. Day traders typically close out all of their positions by the end of the day in order to avoid the risk of holding positions overnight.
Swing trading
Swing trading involves holding positions for a few days to a few weeks. This type of trading involves analyzing price trends and using technical analysis to determine when to buy and sell.
Position trading
This is a longer-term trading strategy, where you hold positions for several weeks to several months. Position traders often use fundamental analysis to determine the underlying value of a stock, and they aim to take advantage of long-term trends in the market.
Algorithmic trading
This is a type of trading where you use computer programs to analyze the market and make trades automatically. Algorithmic trading can be used for any of the other types of trading listed here, but it relies on complex mathematical models and data analysis to make decisions.