## Overview of Trading Strategies
A trading strategy is a fixed plan designed for profitable returns by buying or selling assets. Key to success are planning, execution, and risk management.
## Main Types of Trading Strategies
**Active Trading Strategies:**
– **Scalping:** Quick trades to capitalize on small price changes, demanding swift decisions.
– **Day Trading:** Positions open and close within the day to eliminate overnight risks.
– **Swing Trading:** Trades held for days to weeks, aiming to profit from price swings.
– **Position Trading:** Long-term strategy focusing on significant trends.
**Specialized Strategies:**
– **Momentum Trading:** Buying assets on upward trends, selling on declines.
– **Mean Reversion:** Assumes prices revert to historical averages, buying low and selling high.
– **Contrarian Trading:** Bets against market trends, assuming the crowd is often wrong.
Trading strategies, from scalping to long-term investing, require discipline and risk management for success.
