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Types of Trading

There are several different types of trading, each with its own unique characteristics and strategies. Here are some of the most common types of trading:

  1. Day Trading – This involves buying and selling securities within the same trading day, with the goal of making a profit from small price movements.
  2. Swing Trading – This involves holding positions for several days to several weeks, with the goal of capturing larger price movements.
  3. Position Trading – This involves holding positions for several months to several years, with the goal of capturing long-term trends.
  4. Scalping – This involves making multiple trades within a very short time frame, usually seconds or minutes, with the goal of making a small profit on each trade.
  5. Algorithmic Trading – This involves using computer programs to execute trades automatically based on predefined criteria.
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