The Pathway
Trading 101: The No-BS Guide to Financial Markets

Choosing Your Trading Path & Types of Trading

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Forex vs. Other Markets – What’s Your Path?

  • Forex: High liquidity, 24/5 market, short-term moves.

  • Stocks: Requires more capital, limited hours, longer holding periods.

  • Options: More complex with expiration dates and volatility risks.

  • Futures: Used for commodities, indices, and currencies with leveraged contracts.

  • Forex (Currencies) – Highly liquid, always moving, but requires serious discipline.

  • Stocks (Companies) – Great for investing but slower for day trading.

  • Commodities (Gold, Oil, etc.) – Can be highly volatile, big price swings.

  • Indices (SP500, NASDAQ, DAX) – Less risk, moves in trends, good for beginners.


    Types of Trading Styles

1️⃣ Scalping – Fast-paced, high-energy, and NOT for the weak-hearted. You’re in and out within seconds to minutes, stacking small wins. Requires fast execution and tight spreads.

2️⃣ Day Trading – No overnight risk, trading within the same day. A mix of technical analysis and news trading to capitalize on short-term price movements. More controlled than scalping but still intense.

3️⃣ Swing Trading – Holding trades for a few days to weeks. Less stress than day trading but requires patience and the ability to ride trends. Perfect if you don’t want to sit at your screen all day.

4️⃣ Position Trading – The long game. Holding trades for weeks, months, or even years based on macroeconomic trends. Less frequent trades, but higher potential rewards.

How to Choose Your Trading Style?

🔹 Are you impatient? → Scalping or day trading might fit.
🔹 Do you prefer waiting for the best setups? → Swing trading is for you.
🔹 Want stress-free, long-term investing? → Position trading is the move.
🔹 Hate staring at screens all day? → Avoid scalping at all costs.