Trading styles define how long a trader holds a position and how frequently trades are made. They are shaped by a trader’s time availability, risk appetite, and personality. Some traders prefer very short-term opportunities, while others focus on capturing longer trends. Choosing the right style ensures consistency and helps align trading with lifestyle and goals.
Importance / Key Highlights
- Sets the time horizon and frequency of trades.
- Matches trading activity with personal lifestyle and mindset.
- Impacts the risk tolerance, capital usage, and stress level.
- Provides clarity on tools, charts, and strategies to apply.
Main Trading Styles
- Scalping: Very short trades, seconds to minutes.
- Day Trading: Open and close trades within the same day.
- Swing Trading: Holding for days to weeks.
- Position Trading: Long-term positions for months.
- Investing: Wealth creation over years.