Taking the first steps in trading on the financial exchange, all traders are faced with the question of choosing a trading strategy. Initially, it may seem that making this choice is rather difficult. There is a deal of truth in it. However, one way or another, each of them finds their own ideal way to trade.
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There are many trading strategies at the moment. Each of them has its own advantages and disadvantages. More details can be found on the website https://www.home.saxo/ru-ru/products/forex. Before choosing your Forex trading strategy, study each style. Choose the option that suits you best. We will consider the most popular trading strategies in this article.
Scalping
This is a speculative strategy that is usually carried out within one trading day. Scalpers take a large number of short trades with little profit. Scalping traders are looking for profitable trades every day, spending a long period of time on the computer. A successful scalper must react quickly, be assiduous, and maximally focused on the deal. In addition, if you decide to become a scalper:
- stock up on strong nerves;
- be ready to devote a lot of your time to trading.
Day trading
Day trading or intraday trading involves closing trades during the day. This is due to the fact that "leaps" can happen at night. In turn, these are big risks. Compared to the previous strategies, there are significantly fewer transactions with a long duration in day trading. Day traders should monitor trades periodically. If your timeframe is 1 hour, you need to check the chart every 60 minutes.
Swing trading
This type of strategy is characterized by the presence of a small number of transactions. Closing a deal can be expected for more than one day. To trade like a swing trader, you have to be very patient, which is already clear. However, there is a great advantage here. Swing trading doesn't take a lot of time.
Positional trading (medium and long term trading)
Positional trading has absolutely no time limits. This strategy is usually preferred by those who are ready to wait for long and serious results, since trades can last from one week to several years. The advantages of this strategy include the absence of the need for ongoing analysis. At the same time, this strategy requires a lot of patience from the trader.
Which strategy should you choose? There is no single answer to this question. Each trader must independently decide:
- what is closer to him;
- whether he is ready to wait for profit in the long term or whether he wants to successfully close a large number of transactions within one day.
Nevertheless, beginners are not recommended to start their journey with day trading or scalping. It is believed that it is the large timeframe that will help newbie traders understand the chart. Remember that your personality should be the main guideline when choosing a strategy.
