Top 4 trading styles

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min read

A compass surrounded by trading styles—Scalping, Day Trading, Swing Trading, Position Trading—symbolising choice.

Trading isn’t one-size-fits-all. Some traders thrive on fast-paced action, while others prefer a slow and steady approach. Finding the right trading style is key to making the most of your trading journey.

In this guide, we’ll break down the four main trading styles to help you discover which one aligns with your personality, time commitment, and risk appetite.

What is a trading style?

A trading style is like your personal approach to the market-it reflects how often you trade, how long you hold positions, and how much risk you’re comfortable taking. It’s different from a trading strategy (which is more about specific techniques and setups). Your trading style should match your lifestyle, mindset, and financial goals.

The best part? There are no rigid rules! You can explore different styles and tweak them to suit your needs. Let’s dive into the four most common trading styles.

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1. Day trading - fast-paced and thrilling

Large 3D number "24" in front of red and white bar charts, representing the fast-paced nature of 24-hour day trading activity.

If you love quick decision-making and finishing the day with a clean slate, this one’s for you.

How It Works	Best For	Challenges
Open and close trades within the same day—no overnight positions.	Adrenaline junkies who love fast-paced action	Requires constant market monitoring
Take advantage of short-term price movements.	Full-time traders	Can be mentally exhausting
Requires technical analysis and quick decision-making.	People who thrive under pressure	Needs strong risk management skills

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2. Scalping - blink and you might miss it!

Illustration representing day scalping as a trading style.

Do you love the thrill of quick wins? Scalping might be your style.

How It Works	Best For	Challenges
Make dozens or even hundreds of trades in a single day.	Traders who love rapid decision-making	High-pressure environment
Profit from tiny price fluctuations.	Those who can focus intensely for short bursts	Requires ultra-fast reflexes
Requires precision, speed, and discipline.	People who enjoy high-frequency trading	Transaction costs can add up quickly

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3. Position trading - the patient trader’s dream

Illustration representing position trading as a trading style.

If you prefer long-term plays and big-picture thinking, position trading could be your match.

How It Works	Best For	Challenges
Hold trades for weeks, months, or even years.	Traders who prefer long-term trends	Requires a lot of patience
Focus on major market trends rather than daily price swings.	Those who don’t want to trade daily	Capital is tied up for longer periods
Uses fundamental analysis to make decisions.	Investors who like ‘buy and hold’ strategies	Market shifts take time to play out

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4. Swing trading - The best of both worlds

Illustration representing swing trading as a trading style.

Like a mix of short-term action and long-term strategy? Swing trading might be your sweet spot.

How It Works	Best For	Challenges
Hold trades for a few days to weeks.	Traders who want flexibility	Requires patience to wait for setups
Capitalizes on short-to-medium-term price movements.	Those who enjoy technical analysis	Markets can be unpredictable
Involves buying at dips and selling at peaks.	People who like spotting trends	Holding overnight exposes you to unexpected events

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Which trading style suits you best?

If you’re still unsure, here’s a quick way to figure it out:

Do you love fast-paced action? → Try scalping or day trading
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Do you prefer a more relaxed approach? → Position trading is for you
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Do you want something in between? → Swing trading could be your best bet

The good news? On Deriv, you can experiment with all four styles using a free demo account. Test them out, find what works for you, and start trading with confidence!

Set up your free Deriv demo account today and practice with 10,000 USD in virtual money-risk-free!

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