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Trading Styles and Strategies – A Guide
21. 08. 2025

Trading Styles and Strategies – A Guide

Financial markets offer a wide range of trading styles and strategies, from which everyone can choose an approach that best corresponds to their goals, time possibilities, and personality traits. While some traders seek short-term opportunities and quick profit, others prefer a calmer pace and longer investment horizon. This article will therefore introduce you to the main trading styles, including intraday, swing, and position trading, and will also familiarize you with specific strategies such as Scalping, Breakout, and Mean Reversion. This will help you find the optimal approach to the market.

💡 Before dealing with styles and strategies, however, we recommend learning how the stock exchange works and when trading occurs where, and also studying in detail how to analyze markets, how to keep emotions under control and how to manage risks and capital.

Types of trading styles used on the stock exchange

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Intraday trading – Intraday traders enter and exit positions during the day, so this approach requires very intensive market monitoring, quick reactions and the ability to control emotions. These traders often rely on technical analysis and short-term price movements. This style is suitable for those who have enough time daily to devote to the markets and are willing to operate at a pace that tends to be stressful.
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Swing trading – Swing traders hold positions from several days to several weeks. Their goal is to capture medium-term price movements and profit from smaller trend waves. This style is thus logically less time-consuming than intraday trading, because it's not necessary to constantly monitor every price movement. Nevertheless, it's appropriate to regularly analyze the market and update trading plans according to the current situation.
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Position trading – Position traders hold positions for longer periods – from several weeks to months or even years. This approach often relies on fundamental analysis and also long-term trends. A position trader looks for sustainable price movements that are usually the result of macroeconomic factors or long-term changes. This style requires patience and resistance to short-term fluctuations.

Trading strategies

Besides the time horizon, you can also choose a specific strategy focused on a particular way of generating profits.

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Scalping strategy – Scalpers try to exploit small price movements in short time periods. Trades can last only a few seconds to minutes. The goal is to collect a series of small profits that eventually add up. Scalping requires high concentration, quick reaction and precise trade execution.
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Breakout strategy – A breakout trader focuses on the moment when price breaks through an important level. Crossing this boundary can signal the beginning of a new trend or intensive price movements. Breakout strategies utilize the moment when more traders enter the market, reacting to the price breakout.
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Mean Reversion – Based on the idea that price tends to return to the long-term average after fluctuations. These traders therefore look for assets that have temporarily deviated from the usual price range and speculate on its return to the average. This strategy is often used in swing trading.

How to choose a strategy that suits the trader

When choosing a trading style and strategy, it's crucial to consider 3 things: your personality, time possibilities, and given goals.

Trader's personality

Are you a calm and patient person who prefers less stress and rather large slow movements? Then you'll probably be attracted to Position trading and Mean Reversion strategy. But if you rather seek adrenaline, then Intraday trading and Scalping will probably better suit your nature.

Time availability

If you can only devote a short time during the day or week to the markets, swing or position trading will be more suitable for you. Conversely, if you have enough time and want to be constantly at the center of events, an intraday or scalping approach can be an interesting choice.

Financial goals

Think about what you want to achieve in the market. Short-term strategies can generate more frequent smaller profits, but require more time and effort. Long-term ones can bring interesting appreciation based on trends, but you must be prepared to wait and handle fluctuations.

Summary of trading styles and strategies issues

Choosing a trading strategy and style is a personal process that should be based on your individual preferences, time possibilities, goals and ability to handle stress. Every type of trader can find an approach that will suit them. Try different styles, learn from experience, and gradually improve your approach to the market.

Understanding the mentioned principles is one of the next steps to success in the markets. In the 7th part of the Guide for Stock Exchange Beginners you can look forward to Trading Diary and Performance. And if you don't want to hesitate anymore and don't want to study anything more, XDIGR is here – just choose a slot and send a deposit to it. Our traders will take care of everything else.

Trading styles illustration
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