In this article You learn a bit about trading if you are a new trader, I hope you pick some knowledge through this post. Previously my content was about trading indicators. Today we are going to talk about the different types of trading strategies. If you want to dive into trading it is better to learn first and then practice and teach what you learn. The Traders almost use three types of trading strategies. and these three types are: SCALPING, DAYTRADE, SWING? Let's define these three points.
Scalping is a strategy used by short-term traders who follow the timeframe every second and minute. Traders usually do not expect much money during this time but as soon as they make a profit even if it is a little bit it breaks the position. But it is faster to make money in that short period of time. The most commonly used currency pairs for FOREX are EURUSD, USDJPY, GBPUSD. Crypto is BTCUSD and ETHUSD which have high volatilities. But the disadvantage of scalping is that it causes stress because you are always in front of a computer screen. However, once you get used to it, it always seems to go by itself.
#2) Day Trade
The day trade strategy used by traders who fail to make scalping trades. As such it is a day trade in which the analysis is done for the day-to-day position to avoid the risk of too much due to the increase in the overnight spread which is not so good to place a position. Good day trading is enough time for you to do technical and fundamental analysis. MACD, RSI, STOCHASTIC OSCILLATOR indicators are used in this analysis to help identify trends and market conditions. H1 and H4 are the timeframes used. During the night, traders decide to position using the DAY TRADE strategy.
Swing trading, on the other hand, is not the same as day trading because it is not a one-day analysis but it lasts for a week or more. Traders have time to do activities other than trading while using the swing trading strategy, but it really takes a long time and needs to make a lot of money but in the long run. Uses trend trading, counter-trend trading, momentum, and break out trading strategies.
All of the above strategies are used by traders around the world, and everyone has their own choices. Whether scalp or day trade or swing is all good if the analysis is met in line with the market path. Stop loss is far away and take profit reigns.