Key findings
Active trading is an attempt to profit from short-term price fluctuations.
Active traders intend to trade only for a short period of time.
Day traders, scalpers and swing traders (difference between swing and scalp trading) are considered active traders, with scalpers and day traders being more active than swing traders.

Understanding active trading
Active trading aims to profit from price movements in highly liquid markets. For this reason, active traders tend to focus on stocks, forex, futures and options with high volume, which allows them to easily enter and exit positions.

Active traders usually use a large volume of trades to make a profit, since the price fluctuations that can occur in the short term are usually relatively small. They will also use different types of orders depending on the situation. To lock in a breakout, they can use a stop loss order. For example, if there is resistance at $ 50, they can set a buy stop at $ 50.05, which sends a buy order if the price breaks $ 50 and hits $ 50.05.

Stop Loss -a Stop - This order is used to limit losses, helping to keep losses manageable if the price moves against the trader.

To lock in a favorable price, an active trader can use limit orders. If a stock is trading at $ 30, but the trader wants to see if they can buy at $ 29.50 in a fast fall, he can place a buy limit order at $ 29.50. Likewise, they can place a sell limit order to exit the position at $ 31.

Such orders allow an active trader to buy and sell without tracking the price every second of the day. They set their orders and know that if the price hits these levels, their orders will be triggered.

Since active traders trade for short periods of time, fundamental or economic aspects usually do not play a role in the trades. Rather, technical and statistical analysis plays a more important role as many active traders trade based on price action or technical indicators or concepts.