What style of trading is for you?In the following article we will talk about the trading styles that exist and that may be best for you. Now let’s see what each of these means. Plus, you’ll discover which one is better for you to start making money!
Day trader style!
AIt is a trader who is in and out of the markets multiple times in a day. Basically you’ll be taking trades mt aybe 3-4 times a day. Maybe less or maybe more, but crucially you won’t, you’ll typically hold the position during the night. Typically, a day trader enters and exits and closes the position before he turns off the machine and trades off the shorter timeframe chart. When he is trading the markets, technical traders are at least looking for charts. And when they see a candlestick on a chart it basically represents what the price did in a particular time frame.
Now normally a day trader will be looking at the 15 minute chart, the 1 hour chart and possibly the 4 hour chart for confirmation. Now, remember each of these candles, it tells you what price made at that particular time. So, the day trader will be looking at the lower time frame chart. It is always good to use more than one high term chart for confirmation of the bigger picture which is good for whatever type of trading you are doing.
You will need to spend several hours in front of screens a day. If you do you will have a day job. On the other hand, if you cannot spend several hours in front of screens, then maybe day trading is not for you. Do not think that with 10 or 15 you can trade in a day. If you want to be a day trader you will have to commit at least 3,4 or 5 hours a day. As you know Forex markets are open 24 hours.
SWING TRADING STYLE
Often referred to as position trading. The position trader typically trades on the medium-term view. This one is going to take a longer-term view and fill these positions overnight, sometimes they’ll be holding this for a week, even a month. You’ll be looking at the charts on a weekly basis. There are even traders who will be looking at monthly charts and some who see annual charts. SWINF TRADER trading position will only need 10-30 minutes per day in front of screens. This is great for those with day jobs. You will be able to do analysis in an hour, place the trade and walk away and look at it again 24 hours later. It is a great way to trade if you are just starting out in trading as well.
Many people are drawn to this type of trading because it is very exciting, you are in and out of the market several times a day. So, scalpers go in and out of the markets taking very small profits. For this to actually pay you will need to be in multiple times a day, some are taking up to 50 trades, some even more.
Be very careful if you are entering the markets for the first time, looking to start scalping more about at the time that scalpers are looking at very short time frames. The most important thing about scalping is that you must have a very high level of self-control and discipline because it is very intense and you know that the biggest reason why many traders fail is because of emotions, revenge, trading, assuming and taking too much risk. Therefore, you must have a very strict control of your emotions. If you are going to start in the time periods start with the highs and then scalping periods. Booting from SCALPING can be dangerous.
Different time frames!
Now let’s talk about the different time frames, because this doesn’t exactly fit the different styles you might want to adopt. For the scalper to remember, it is there at the lowest moment of the chart, which you can see from 1 minute, 5 minutes and 15 minutes and the maximum time period chart is one hour, with intense trading and a little bit of overlap. There, the day trader is going to be looking at the 15 minute chart, also maybe the 4 hour chart.
The types of time periods you should be thinking about when deciding which style you want to adopt will depend on 3 main factors. The first thing would be the goals, if maybe you’re looking to grow an account, whether it’s a retirement or a pension or a savings account, chances are you don’t want to be down and maybe you’re looking at the highest time on charts. Maybe take a week to trade or maybe a couple of trades in a month, something like that, then you should be considering trading the markets using the SWING strategy.
If you want to carve out a second income for yourself or actually become a full-time professional trader, then you might want to use day trading. If, on the other hand, you want to have scalping strategies and you want to be a bit out of emotions, then maybe you should go for this style of scalping. The idea is to make a long term run. If you start with SCALPING this is not for you, if you are one of those people who make impulsive decisions and change your mind you should not be watching SCALPING. Here you should take a higher timeframe to stay away, you should see SWING trading or even day trading. So, consider these factors and think about them!
So don’t go into these markets with the emotion factor, which often leads to traders failing. We know that a successful trader must have discipline and is the one who starts in more relaxed places to trade. If you are just starting out, we recommend that you start with the higher time frame charts like the SWING, perhaps as a day trade and then move up to the SCALPING. So, we hope this information will be of great help to you and your training as a professional trader.