diff --git a/DeFi/day-trading/trading-types.md b/DeFi/day-trading/trading-types.md new file mode 100644 index 0000000..d3fe8f5 --- /dev/null +++ b/DeFi/day-trading/trading-types.md @@ -0,0 +1,67 @@ + +# Types of trading + +
+ +### Swing trading + +* short-medium term trades +* open trades for days-weeks +* uses both technical and fundamental analysis +* capture a % of a price move +* requires less time +* potential short-term profits +* use TA without extensive FR +* could miss longer term trends and profits +* short-term swings can stop you out of traders + +
+ +### Breakout trading + +* short term trades +* oepn trades for hours-days +* mainly use TA +* use specific chart setups +* capture a breakout in price +* require less time +* potential short-term profits +* requires dicipline +* uses day or hours chart +* could miss long term terms and profits +* short-term swings can stop you out of traders + +
+ +### Scalping + +* intra-day trades +* opem trades for minutes-hours +* only TA +* uses specific TA strategies +* trade off tiny movements +* require lots of time +* potential short-term profits +* extra opportunites on top of long-term trades +* 100's trading opportunities +* use 5-10 minute charts +* requires more funds +* difficult to implement +* short-term swings can stop you out of trader + + +
+ +### Dollar cost averaging + +* long-term strategy +* price agnostic +* fundamental analysis +* investments, not trading +* not interested in short term +* markets go up over time +* no mathematical advantage compared to lump-sum investing +* can face significant losses in your losers over time + + +