The Different Types Of Trading Strategies

٢٢ أغسطس ٢٠٢١

Hello everyone, as we all know the market action discounts everything :)

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In today’s video, we are going to be talking about The Different Types Of Trading Strategies, We are going to compare them to each other and look at their characteristics.

Characteristics include 1) Time Duration, Type of Chart, Trade Targets & Risks, Frequency of Trades, Entry and Exit Time.

There are 4 types of trading styles :
Most people fall in the first 3

1) Scalping
2) Day trading
3) Swing trading
4) Position trading (Refers to holding a certain position over a very long time frame like a number of years, I think this type of trade is more of an investment than trading but technically it's still trading so I had to mention it ).




So Let Us Start...

1) Scalping

• Time Duration is between a few seconds and a number of minutes
  
• The Analysis is done on 1,2 and 5 minutes charts
  
• Small targets considering the very short trade duration
  
• High frequency of trades because of the small risk on each trade
  
• Scalpers need to know exactly when to enter and when to exit a trade because a small mistake can have a huge impact on the trade
  

2) Day trading

• Time Duration from 15 min to a number of hours
  
• The analysis is done on 30 min, 1 hour, and 4-hour charts
  
• These trades have a larger target than Scalping
  
• Day Traders have a lower trade frequency than scalpers and its usually between 2-10 trades per week
  
• Day Traders doesn’t have to be so precise with entry and exits like in Scalping because being late for a trade on a daily basis won't have that much of an impact on the trade.
  

3) Swing trading

• Time Duration typically last from a day to a couple of months
  
• The Analysis is done daily, weekly & monthly charts
  
• Because of the time frame, Targets usually are way larger than day trading or scalping
  
• Low frequency in trades, Usually between 2-15 trades per month
  
• Entry and exits here don’t have a big impact because the targets are so big
  

So now you ask yourself how do I know which type of trader am I?

And it comes down to 2 main factors :

Personality: You could be someone who likes to hold trades and profit big so swing trading is for you, Or you could be someone who doesn’t like to hold trades over a day period so scalping or day trading could be for you.

Lifestyle: So you may not have the time to always watch the market and how it's moving, so scalping and day trading are not for you, but for swing trading, u only have to check the market once a day so it's the better option for you.

Don’t feel like you need to decide what type of trader you are, you should try all of them and see for yourself what are you comfortable with after all there is no right answer.

I hope that I was able to help you understand The Different Types of Traders better and if you have any more questions don't hesitate to ask.

Hit that like if you found this helpful and check out my other video about the Moving Average, Stochastic oscillator, The Dow Jones Theory, How To Trade Breakouts, The RSI, The MACD, and The Bollinger Bands, links will be bellow