Which trading strategy to choose

WHICH TRADING STRATEGY TO CHOOSE

There are many strategies, which in turn are divided
into several groups. For traders, strategy is their bread. Each trader chooses it for himself depending on his lifestyle, risk tolerance, psychology. I will tell you about 5 MAJOR CATEGORIES according to
which all strategies can be divided.

The first is scalping - a popular style of short term trading among traders. You need to have strong nerves, quick reactions and a cool head to win with this strategy.
Very fast trades with a small profit, but a small profit is recouped due to the number of trades made within the day.
Scalping is an intraday strategy, traders never roll over positions, it is against their system. These are often one to two minute trades; the tick chart or the lowest timeframes are popular.
Scalpers try to catch volatility, which often occurs when there is any fundamental thing. The most liquid instruments are traded. The most important thing a scalper remembers is the spread.


Day traders do not carry over trades overnight, open and close during the day. For them, a trading session is within one day or, if it is an exchange, the intraday time frames established by the regulations.
Working time frames for intraday traders are 5-30 minute intervals.
Within the day, the risks are less when compared with medium-term strategies, therefore, an increase in leverage is acceptable. Profits are obtained only from intraday movements of instruments.

A swing trading strategy is the opening and closing of trading positions based on the momentum of the underlying currency pair, often identified by indicators.
Their trading activity usually focuses on short-term changes in the exchange rate, with all positions being closed within one to four days, so they do indeed hold overnight positions.
The goal of swing trading is to identify a general trend and then profit from swing trading within that trend. Positions are closed within one to four days, so they do hold positions overnight.
The working timeframe is 4 hours and older. Swing traders are able to profit both from the trend and from the corrections, the task is to catch the movements in time.

News traders know that this is a rather risky job. The point is in key news events, the publication of important economic data.
Traders hunt for the volatility that news gives, a kind of energy for movement. They open trades, sometimes simultaneously in both directions, just before the news comes out and try to catch that very movement. Such strategies do not involve opening overnight positions.
Trades are opened as at the time of the news release, a little earlier, so you can open a little later to take advantage of the wide volatility that may occur.

A trend trading strategy has more medium and long term priorities. Includes the use of technical trading analysis to identify patterns, understand the trend, and find places to open a trade.
Open positions only along the trend, against the market in this system, traders do not trade
Working time frames for trend traders are daily, weekly and monthly, on which they conduct technical analysis, often use long-term patterns, as well as fundamental analysis to get ideas and forecasts. Traders of this category do not particularly react to the spread, therefore, they have the opportunity to trade a wider number of currency instruments.


Traders, if you like this idea or have your own opinion about it, write in the comments. I will be glad👩‍💻