For those of you who are still relatively new to the world of trading, it's a good idea to look for a trading style that matches your character and daily activities. Choosing the right trading style will increase your chances of becoming a successful trader. Here are 4 kinds of trading styles that are generally used by traders.
Scalping
Scalping is a trading style with the technique of making dozens or even hundreds of open trading positions in one day. Scalping is usually done in a matter of minutes by taking not much profit. The scalping trading style requires factors that support the scalping technique to observe the chart and be able to make decisions quickly and without hesitation.
Day Trading
Day trading is a trading style for traders who prefer to open positions and settle them the same day without staying overnight. A day trader may not be able to sleep soundly because he still has an open trading position and also because he doesn't want to be exposed to swap fees (overnight swap).
Swing Trading
Swing trading is a fundamental trader who holds his position for more than one day. Today, most fundamental traders and top hedge funds are swing trading more often. This is because news updates and significant economic reports usually appear on a scale of several days or weeks.
Trading Positions
Position trading is the longest of all the above trading styles. A position trader can hold his position for several years. This trading style requires a strong understanding of macroeconomics. A successful figure with this trading style is Warren Buffet. If you can't hold your heart beat to see fluctuations in your trading account pips, then this trading style is not for you.
Choose the Most Comfortable Trading Style
Consistency is the important factor here. When we arrive at a trading style that is suitable and profitable, excessive self-confidence can at any time change our trading style, and the result leads to losses. Make ourselves as comfortable as possible so that we can remain consistent with our trading style.
Essence
To find a trading style that suits your character and routine, it does require patience which is not enough for only one or two months. However, if you can determine a trading style that suits your character and can build it into a trading system that has worked well, your patience and perseverance will pay off in the future.
As in the world of swimming, which recognizes various swimming styles, such as the frog style, backstroke, butterfly or freestyle, there are also various trading styles in trading.
So so we have to know the following two things:
Condition of swimming area: swimming pool, ocean, river or muddy pond (if the latter is almost all swimming styles will be stuck in place)
Which swimming style is suitable for use in accordance with the existing conditions: frog style, backstroke, butterfly, freestyle or rock style (the latter may be more accurately surrendered)
Which style of swimming suits you the most or gives you the most results, both in terms of speed or in terms of the use of energy, because some are fast and use up energy so you have to have a lot of power or a little slower but not too fast draining energy
The lesson that you can learn from this article is that you have learned a little picture about the world of swimming, on the side you can also correlate this in the world of trading, water as a market, swimmers as a trader and swimming style as a trading style or trading system. Next we will study in more detail the existing swimming styles. Congratulations on learning the swimming style that suits your condition and personality.
