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Exploring Different Types of Trading: A Comprehensive Guide for Beginners and Experienced Traders đź“Š

Feature Article Exploring Different Types of Trading: A Comprehensive Guide for Beginners and Experienced Traders
JUL 3, 2023 LISTEN

What kinds of trading are there? đź“Š
Many of you have ever wondered what it would be like to start trading. We have decided to describe for you the types of this kind of activity. There are several types of trading, among which seven are most common.

đź“Ś 1) Scalping - trading in which the trader receives a small profit from each price movement. Requires constant and painstaking work of the investor, as it is necessary to work on the shortest timeframes (for example, minute).

đź“Ś 2) Trading on medium term is the best option for beginners, it is calm and less risky than scalping. Profit/loss is formed by price movements on the periods equal to one hour, several hours, twenty-four hours. During this time you can soberly analyze the data and choose a strategy.

đź“Ś 3) Trading on long timeframes (week, month) is based on analysis of economic processes, external factors and market movements. As a rule, it is chosen by large capitals - corporations, banks, other financial institutions.

đź“Ś 4) Moment trading is a rare type, when an investor combines trading on different timeframes.

đź“Ś 5) Technical trading - a trader trades on any timeframe based on technical analysis, that is, predicting the likely change in prices based on how they have changed in the past under similar circumstances (trend analysis).

đź“Ś 6) Fundamental trading - a trader trades in the medium term using fundamental analysis, i.e. analyzing and forecasting the market value of the issuer based on the performance of companies.

đź“Ś 7) High-frequency trading - trading, which is conducted not by people, but by complex powerful computers that perform up to several million computing operations per second in order to close the deal with maximum profit. It is a new and developing tool, which is nevertheless prone to attacks and periodically damages the world stock markets.

âť” Have you ever been involved in trading?
đź‘Ť - Yes
đź‘Ž - No

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