TRADING LESSON 2


Before we go to buying of best coin of the day, you must know first the general styles of trading that you may use. There are FOUR TRADING STYLES:

WHAT ARE THE TRADING STYLES THAT MAY SUIT YOUR SKILLS AND KNOWLEDGE?

  1. Position Trading

  • most of the big investors, trade for this kind of trading, Long term could take trading months to years.

  • Choose great coin market with proven history of rising prices, just look into the candle sticks graph, see below. Make a thorough study of the price range increase before you set buy for Position Trading.

  • BUY AT THE LOWEST POSSIBLE PRICE then SELL IT AFTER months - years or when you would like to sell it if the price meet your demand.

  • Long Term = High Capital (High Volume) or Low Capital (Low Volume) = Low Risk = High Return of Investment.

2. Swing Trading

  • it is a Short term trading from days to weeks.

  • most of the traders when they didn’t reach the target for Day or Scalp Trading, they fall into Swing Trading. They will wait days to weeks for the coin to sell to gain profit. (Most of the time the market is unpredictable especially when you are doing short term trading. Pwede sya tumaas agad (PUMP) ng seconds-minutes, afterwards, pwede bumagsak (DUMP) ulit ang price. Kapag nag Scalp or Day Trading, make sure na babantayan, para maisell nyo sa price na magkaprofit kayo at hindi nyo na mai-Swing Trading.)

  • BUY AT THE LOWEST POSSIBLE PRICE then SELL IT AFTER how many days na makagain ka ng profit.

  • Short Term = High Capital (High Volume) or Low Capital (Low Volume) = Low Risk = Average Return of Investment.

3. Day Trading

  • short term trading in which positions are entered and exited on the same day.

  • Unlike position and swing traders, a day trader does not hold any positions overnight, and all trades are closed by the end of the trading session using a profit target, stop loss or time exit (such as an end-of-day exit).

  • Day traders typically use technical analysis to find and exploit intraday price fluctuations, viewing intraday price charts with minute, tick and/or volume based charting intervals. Because trades are held for a period of minutes to hours, large price moves are uncommon, so day traders rely on frequent small gains to build profits. To leverage their buying power, day traders usually trade with margin.

  • Day trading is a full-time job since positions have to be constantly monitored and traders need to be immediately aware of any interruptions to the technology chain (for example, a lost Internet connection or a trading platform issue).

  • BUY AT THE LOWEST POSSIBLE PRICE according to the fastest market bid price (refer to the “BUY and SELL ORDER BOXES”) then SET SELL IT AFTER how many minutes or hours na makagain ka ng profit.

  • Short Term = High Capital (High Volume) or Low Capital (Low Volume) = High Risk = Low Return of Investment.

4. Scalp Trading

  • Scalp trading is an extremely active form of day trading that involves frequent buying and selling throughout the trading session.

  • Scalp traders target the smallest intraday price movements and rely on frequent and very small gains to build profits.

  • Profit targets and stops are used to manage positions that are generally held for a period of seconds to minutes. Because gains are small on any one trade, scalpers may place dozens or even hundreds of trades each trading session; as a result, it's imperative that scalpers have access to low trading commissions.

  • It should be noted that scalp trading is considered very risky because it relies on having a high percentage of winning trades. And because the average winning trade is generally many times smaller than the average losing trade, it can take just one or two losing trades to wipe out all of your profits.

  • Precision is paramount with this style of trading, and scalping requires constant attention to the markets.

  • BUY AT THE LOWEST POSSIBLE PRICE according to the fastest and high positive or negative change market (refer to the “MARKET POSITIVE and NEGATIVE PERCENTAGE OF CHANGE”) then aggressively MONITOR to minutes or seconds na makagain ka ng profit.

  • Very Short Term = High Capital (High Volume) = Very High Risk = Low Return of Investment.


M.AJA

#TypeofTrader #Useyourtimewisely #TradingtoearnnottoEmploy

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