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TYPES OF TRADING

SCALPING

Lightning-fast trades grabbing tiny profits from dozens to hundreds of tiny price moves per day.

  • Time frame: Very short term
  • Holding period: Seconds to minutes (< 120 seconds)
  • Focus: Monitoring for 30 min. when market opens
  • Charts: 1 minute
  • USD $25,000 minimum or CDF
  • High leverage, high intensity

DAY TRADING

Buying and selling the same stock within one trading day, no overnight positions.

  • Time frame: Short term (< 24 hours)
  • Holding period: Day only. No overnight positions
  • Focus: Constant monitoring after market opens
  • Charts: 1- & 5 minute
  • USD $25,000 minimum or CDF
  • High leverage, high intensity

SWING TRADING

Holding stocks for several days to weeks to capture short- to medium-term price swings.

  • Time frame: Short term
  • Holding period: Days to weeks (< 2 weeks)
  • Focus: ½ to 1 hour before market opens
  • Charts: Daily
  • Leverage with low intensity (CFDs)

POSITION TRADING

Taking longer-term trades (weeks to months) based on the bigger trend or fundamentals.

  • Time frame: Long term
  • Holding period: Months to years.
  • Focus: Fundamentals
  • Charts: Weekly and daily
  • Review: Weekly or quarterly 
  • No leverage, loans or CFDs

MOMENTUM TRADING

Momentum Trading: Jumping into stocks that are already moving strongly in one direction with high volume.

  • Time Frame: Long-term
  • Holding Period: Months to years
  • Focus: Fundamentals (with momentum confirmation)
  • Charts: Weekly and daily
  • Review: Weekly or quarterly
  • Leverage: None – No leverage, loans, or CFDs

TREND TRADING

Riding established uptrends or downtrends until the trend shows clear signs of reversing.

  • Time Frame: Long-term
  • Holding Period: Months to years
  • Focus: Trend identification & confirmation (price action + fundamentals)
  • Charts: Weekly and daily
  • Review: Weekly or quarterly
  • Leverage: None – No leverage, loans, or CFDs

VALUE TRADING

Buying undervalued stocks based on fundamental analysis and waiting for the market to recognize their true worth.

  • Time Frame: Long-term
  • Holding Period: Months to years
  • Focus: Undervalued companies trading below intrinsic value (fundamentals-driven)
  • Charts: Weekly and daily
  • Review: Weekly or quarterly
  • Leverage: None – No leverage, loans, or CFDs

GROWTH TRADING

Investing in high-growth companies even at premium valuations, betting on future earnings explosion.

  • Time Frame: Long-term
  • Holding Period: Months to years
  • Focus: High-growth companies with strong earnings momentum and future potential
  • Charts: Weekly and daily
  • Review: Weekly or quarterly
  • Leverage: None – No leverage, loans, or CFDs

Algorithmic/Quant TRADING

Using computer programs and mathematical models to execute trades at superhuman speed and scale.

  • Time Frame: Multi-timeframe (milliseconds to long-term)
  • Holding Period: Varies from seconds to years (strategy dependent)
  • Focus: Data-driven mathematical models, statistical edges, and automated rules
  • Charts: Multiple timeframes + quantitative dashboards
  • Review: Daily to real-time monitoring
  • Leverage: Often used (but can be run without leverage, loans, or CFDs)
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