Your personality is going to dictate the product that best suit your needs. We Technical Analysis Warriors took a trading style approach for our products, making it easy to get started.
Trading can be broken down into four main styles. The four types of trading are scalping, day trading, swing trading, and position targeting. The distinction between the styles is determined by the length of the trading session. Scalping positions are held for no more than a few seconds to a few minutes. Day trades often last from a few minutes to a few hours. Swing trades might last several days. Position-targeting trades are conducted for an unspecified time period, which might range from a few weeks to several years.
Novice traders may struggle to determine which trading strategy best fits their personality. However, this is necessary if you wish to attain long-term success as a professional trader. If you are a trader who has not yet discovered your trading style, there is still time. The following are some of the personality characteristics associated with various trading strategies.
Choosing the trading strategy that is most compatible with your personality increases your chances of profiting as a trader. So be honest, even if you don't like some of the traits that are listed.
Scalping is a type of trading that is extremely fast. Scalpers frequently execute trades within a few seconds of one another, and frequently in the opposite direction. That means they may go long one minute, but short the next.
Scalping is best suited to active traders who are capable of making snap decisions and acting on them immediately.
Because they want their trades to benefit immediately, impatient individuals frequently make the finest scalpers. They will promptly DCA a trade if it goes against them.
Success as a scalper needs concentration and effort(when not using our bot). This is not a trading method for those who are easily distracted or prone to daydreaming. Therefore, if you were distracted by something else while reading this, scalping is not for you.
Day trading is ideal for traders who prefer to begin and finish tasks on the same day. That describes you if you are the type who begins painting your kitchen and will not sleep until the job is completed, even if it means staying up until 3 a.m.
Many day traders never engage in swing or position trading. They would be unable to sleep at night knowing they have an active position that could be impacted by price changes that result in opening gaps during the night.
Swing trading is advantageous for individuals who possess the patience to wait for an opportunity but desire a quick reward once they enter it. Swing traders nearly always overnight their trades. Therefore, if you would feel uneasy holding a position when not connected to a computer, this is not the approach for you. Swing trading, on average, necessitates a greater stop loss than day trading. Thus, the ability to maintain composure when a trade goes against you is critical.
Position Targeting is the most long-term trading strategy available. It frequently engages in trades that last several months to years. As a result, position targeting is only suitable for the most patient and unexcited traders. Profit zones are frequently several thousand pips wide. If your heart begins to race when a trade is profitable by 25 pips, position trading is probably not for you.
Traders who target certain positions must be able to disregard common opinion. Frequently, a single position targeting trade will hold up in both bull and bear markets. For example, a long position may need to be kept for an entire year if the public believes the crypto economy is in danger. If you are easily swayed by others, position trading will be difficult for you.
Maintaining Consistency with Your Trading Style
Choosing a trading strategy necessitates the ability to recognize when one is not working for you. Additionally, it demands the constancy to maintain the appropriate attitude even when performance slows.
One of the most common errors made by beginning traders is to switch trading strategies (and trading systems) at the first sign of difficulty. Changing your trading strategy or trading method on a regular basis is a surefire technique to catch any losing run. Once you've found a trading strategy that you're comfortable with, stick to it. In the long term, loyalty will pay up with results.