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# Day trading notes
# Day trading
<br>
---
## Types of trading
* [Notes on order types](https://github.com/bt3gl-labs/Blockchains-AMMs-and-MEV/blob/main/DeFi/day-trading/orders-types.md)
* [Notes on trade types](https://github.com/bt3gl-labs/Blockchains-AMMs-and-MEV/blob/main/DeFi/day-trading/trading-types.md)
* [Notes on techical analysis](https://github.com/bt3gl-labs/Blockchains-AMMs-and-MEV/blob/main/DeFi/day-trading/technical-analysis.md)
<br>
### 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
<br>
### 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
<br>
### 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
<br>
### 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
<br>
----
## Order types
#### tl;dr
* You can "take " or "make" prices with market and limit orders.
* The spread prevents us from making free money without risk.
* Stop order can limit our risk.
<br>
### Order book
* open market for crypto pairs
* red: sellers; green: buyers
### Spread
* the difference between the best bid and best offer
* you want a tight spread
### Market order
* choose the amount you trade
* don't choose the price
* can trade quickly, easy to use
* can easily pay too much for crypto
* always on the wrong side of the spread
* already in a loss
### Limit order
* choose the amount you trade AND the price
* get a better deal
* can't guarantee we trade the whole order
* must wait for sellers to come
* maker fees are lower
### Stop market order
* choose the amount you trade
* don't choose the price
* choose at what price to place your market order
* some trading strategies will need this order
* fast trading for buy/sell breakouts
* "if price gets to X, sell with a market order"
### Stop limit order
* choose the amount you trade AND the price
* choose at what price to place your limit order
* add on to an winning trade or specific price level (TA)
### Stop loss order
* a version of a stop limit order
* stops your losses
* important for day trading, to mitigate trading risks
* choose the price level with TA
* must be below the current trading price
### Take profit order
* a version of a stop limit order
* trades your position with a profit
* important for day trading, to automate trading
* choose the price level with TA
* must be above the current trading price
<br>
---
## Resources