6 Types of Trading: Advantages and Disadvantages

TurboXBT is an innovative trading platform that allows users to trade with ease, whether they are new or experienced traders. The platform promises up to 90% profits from a single trade, predicting the direction of price movements. 

The platform was launched recently but aims to become the leader and currently offers outstanding conditions that take short-term trading to a whole new level. But how does this type of trading work, and is it really worth your time? Let’s find out!

Six types of trading you should know

1. Short-term trading

Short-term trading means taking advantage of small price changes to make a profit. It can be done using technical analysis (charting), fundamental analysis (news), or both. In general, short-term trading requires high-risk tolerance and good knowledge of chart patterns.

2. Long-term trading

Long-term trading is based on the assumption that the market will continue moving in one direction for some time. This kind of trading is less risky than short-term trading since you don’t have to predict very fast price movements, and it usually lasts for years.

3. Day Trading

Intraday trading is another name for this kind of trading. Everything is done in one trading session, as the name implies. Positions are only retained for the length of a single trading session. An intraday trader goes to sleep with no open positions at the end of the day.

4. Swing Trading

Swing trading is similar to long-term trading but only lasts for a couple of days or months. A swing trader has multiple open positions and closes them when he thinks the market is going against him. He tries to close all his trades successfully before the market turns around.

5. Scalping

Scalping is a trading method that takes advantage of small price changes in shorter time periods. This method assures profits even if the bid price (asset holders’ selling prices) does not change until certain traders are prepared to take the market prices.

6. Position Trades

Position trading is an approach to long-term trading that focuses on identifying and exploiting market patterns. To put it another way, position trading is the closest you can go to a ‘buy and hold’ investing plan without having to trade actively.

Advantages of short-term trading on TurboXBT over other trading types

Most traders tend to avoid short-term trading due to the high risk involved. However, short-term trading on TurboXBT helps minimize the risks through its synthetic smart contracts trading algorithm. Furthermore, it provides a simple prediction mechanism that makes it easy to enter and exit the market without any hassle.