As a beginner, you may find the task of choosing a trading style quite tedious. But the wise thing to do would be to pick what suits your personality and what would help you make strong long-term gains. Do not underestimate the value of picking a type that matches your requirement. It enables you to stay honest with yourself as you make peace with even the parts that aren’t exactly desirable.
Broadly speaking, there are four primary trading styles: scalping, day trading, swing trading, and position trading. To differentiate between these, you must analyze how long the trades are being held. For example, scalping trades are held for barely a few minutes while day trades could be held on for a few seconds to some hours. If you hold on to trades for a couple of days, they’re called swing trades but when you want to go really long and hold for years, it is known as a position trade. Visit multibank
We talk about these in detail below:
Scalping is the kind of trading style that requires you to be at the edge of your seat and time every single move you make. It is a very quick style of trade where you only have a few seconds to decide whether you want to enter or exit the trade. A difference of just some seconds could make or break your bid. You may want to go long for about 120 seconds because you see a trend and then choose to go short within the next 10 seconds!
If you believe you’re an impulsive trader with impeccable concentration, you may want to try out scalping. You’d want to gain out of the small profits made fast and exit the trade as soon as the trends seem to be going against your prediction.
Day trading is a style that suits those who cannot go to bed when they have an unfinished task at hand. If you absolutely must answer all your emails before calling it a day, you would find day trading interesting. There are no unfinished businesses here, you buy and sell the same day. Day trading could be mildly addictive because you might even feel sleepless if you know you left a trade active!
Patience and hunger for a quick profit, if this is a combination that sounds like something you might bring to the table, do explore swing trading. Usually, swing traders hold their trades for at least 24 hours. However, it requires you to stay away from the forex trading platform while trade is ongoing and not be frazzled by the temporary losses. Remember that your stop-loss in this case would be bigger than what a day trader would have.
The terms for these trades are long and even go on for a few years. Position trading demands patience and the ability to go against popular opinion. It requires you to stick to your decisions firmly and see the future picture. If you’ve made an investment for two years but the economy’s position seems dicey, you should be able to withstand the opinions of financial pundits who could advise you to opt-out right away. No one can actually tell what the future may entail, so if you can set aside some funds for the long-term and stay patient, position trading is for you!