Two traders can look at the same chart, agree on direction, and still place completely different trades. The difference is usually their style: how long they expect to hold a position, and so which timeframe they trade from. Choosing a style that fits your schedule and temperament is one of the most practical decisions you'll make.
Scalping
Scalpers hold trades for seconds to a few minutes, aiming for small moves, often just a few pips or points, many times a day. It needs intense focus, fast execution and very low costs, because spreads and commissions eat a large share of such small targets.
Day trading
Day traders open and close their positions within the same session and go home flat, with nothing held overnight. They typically work from the 1-minute to 1-hour charts and trade around session opens and the overlap you met in chapter 3. Most SMC and ICT intraday models are day-trading techniques.
Swing trading
Swing traders hold for days to a few weeks, trying to capture one leg of a larger move. They analyse the 4-hour and daily charts, can check the market a couple of times a day, and accept overnight and weekend risk. It fits well around a full-time job.
Position trading
Position traders hold for weeks to months, guided by the daily and weekly charts and by the macro themes you'll study in Module 11. They trade rarely and use wide stops, so they size positions small.
| Style | Holding time | Main charts | Screen time | Watch out for |
|---|---|---|---|---|
| Scalping | Seconds – minutes | Tick, 1m, 5m | Hours of full focus | Costs, fatigue, overtrading |
| Day trading | Minutes – hours | 1m – 1h | A session a day | News spikes, forcing trades |
| Swing | Days – weeks | 4h, daily | 30–60 min a day | Overnight gaps, swap costs |
| Position | Weeks – months | Daily, weekly | A few times a week | Large drawdowns, patience |
Which one is right for you?
Start from your life, not from what looks exciting. Your schedule rules out some styles before skill even comes into it.
Key takeaways
- The four common styles are scalping, day trading, swing trading and position trading, defined by how long trades are held.
- Your available time and temperament should decide your style before anything else.
- Shorter styles need more screen time and are more sensitive to trading costs.
- Pick one style, set your rules for it, and don't switch styles in the middle of a trade.