Heroes of Ukraine

«Market Leader» - news and previews making you rich.

Monday, 13 July 23:27 (GMT -05:00)



Foreign exchange market

Trading Approaches, As Seen By Professionals


Each and every trader out there should choose the right trading approach that will suit them best. Trading experts say that are 6 trading approaches:
 
1. high-frequency trading
2. scalping
3. day-trading
4. swing-trading
5. mid-term trading
6. long-term investment
 
Without further ado, let's go ahead and take a closer look at each of them.
 
Let's start from high-frequency trading (HFT). This one is all about a huge amount of quick trades. The goal is to profit from rapidly changing quotes. The trading approach requires lightning-fast reaction and constant monitoring. Such trades often last less than a second. So, how is it even possible to trade this way?
 
High-frequency trading is outsourced to robots. They make life easier since those robots can trade 24/7 and you don;t need to supervise them. Still, such a robot needs to be created, tested, and set up before being available for use.
 
Scalping is more like HFT but the lifetime of a trade is longer - from a couple of seconds to a couple of minutes. Scalpers trade manually for the most part. In this case they are forced to spend quite a lot of time monitoring the market, opening and closing trades. Some of those trades are losers, the rest of them are winners, but the key thing is to make so that your winners eventually outperform your loosers.
 
Кластерный график с таймфреймом от 1 секунды до 3-5 минут
 
Most scalpers are beginning traders with a relatively small amount of money dedicated to trading. Basically, they are trying to make money quick at the expense of turning over the capital multiple times over a relatively short period of time.
 
Day-trading is yet another approach to quick trading, even though the frequency of trades is far less considerable. Apparently, since this is day trading, all of the trades are opened and closed within the same trading day. More often than not day traders are content with making under 10 trades a day. If that figure is more substantial, that's probably a scalper. The less trades they make, the more time they have to perform decent analysis. Such traders cannot afford to get distraced for a long period of time if they count of decent gains.
 
Swing-trading is about working on bigger-scale time frames. Those trades live longer, which is why they don't require to be watched as often as previous examples do. The swing trader's lifestyle is more relaxed and flexible, and can be often combined with a full-time job. Trades are often held open for a period ranging from a couple of days to a couple of weeks. Since these are longer-term trades, they are far less numerous, which is why swing-traders is often for those who have bigger amounts of money to invest in their trading activities to gain enough money for their living.
 
Mid-term trading is all about holding those trades for months. Such trades have enough time to perform decent analysis and make well thought-out trading decisions. This is not the best approach for a small budget. You cannot consider any serious trading with 200-500 dollars at a win rate of 10-20% within a couple of months.
Успешный среднесрочный портфель
 
Long-term investors are patient enough to hold their investments for 5-10 years. They aren't afraid of temporary drawdowns because they are convinced in the positive dynamic of the asset in a more distant future. Usually, those investors load up on dividend stocks and enjoy regular dividend payments on top of holding their assets. 
Наиболее удачная инвестиция
 
The bottom line is, whichever approach you choose, there is a decent platform named ATAS, which can become your trading and analytics partner in the trading world. 

 

You are free to discuss this article here:   forum for traders and investors

 

Add to blog
Got a question? – Ask it here »
 

JPMorgan: Bitcoin Turned Into Asset and Survived March Crisis

JPMorgan Chase, one of the biggest banks in the United States and the entire world, analyzed the March crash of the cryptocurrency market and published a report on the results of this research. Bitcoin occupies the lion's share of the report. So, the analysts made the conclusion that the BTC market is getting mature, which is confirmed by a strong correlation with most stock markets.

Publication date: 25 June 11:54 AM

Investment Interest In Bitcoin Drops After Halving

Publication date: 21 June 11:33 AM

Ethereum Is Less Private Than Bitcoin

According to a group of Hungarian experts who decided to examine the Ethereum network, ETH transactions turn out to be less private than BTC transactions. The experts published the results of their research after studying a bunch of several, pretty specific functions of Ethereum. Those functions usually make it possible to track the financial flows in the network.

Publication date: 15 June 02:28 AM

COVID-19 Keeps Affecting Dollar

Right before the start of another trading week of June 2020, NordFX experts came up with another set of market predictions for the forex and cryptocurrency markets. Their predictions are based on the consensus forecast compiled from various market forecasts made by various market experts as well as the result of technical analysis. The period is June 15th - 20th. So, this is what those predictions look like:

Publication date: 14 June 10:55 AM

Goldman Sachs Discussed Cryptocurrencies

Publication date: 07 June 03:57 AM

NordFX Wins "Business Excellence" Award By WORLDCOB

The World Confederation of Businesses, WORLDCOB, which unites over 3500 members from over 130 countries of the world, has recognized NordFX's achievements by awarding the company with THE BIZZ Business Excellence Award.

Publication date: 04 June 08:09 AM

Revolut Reports 68% Increase In Crypto Trading

According to the data provided by a British financial company named Revolut, the limitations related to COVID-19 have been affecting the amount and cost of cryptocurrency transactions made by international users.

Publication date: 04 June 05:19 AM

Cryptocurrencies and Forex. Early June 2020.

Right before the start of the first trading week of June 2020, NordFX experts came up with another set of market predictions for the forex and cryptocurrency markets. Their predictions are based on the consensus forecast compiled from various market forecasts made by various market experts as well as the result of technical analysis. The period is June 1st - 5th. So, this is what those predictions look like:

Publication date: 01 June 08:47 AM

Annual Inflation of XRP Exceeds 20%

The annual inflation of XRP has exceeded 20%, which is 5 times as high as the inflation of BTC. The figures were provided by a research company named Messari. This is the highest annual inflation rate registered among cryptocurrencies with decent market capitalization. Apparently, a major increase in the amount of circulating coins leads to a cheaper coin, which is something that's going on with XRP.

Publication date: 01 June 06:10 AM

Bollinger Bands and Forex Strategies

In this article, we are going to take a closer look at a interesting tech analysis indicator called the Bollinger Bands. Any seasoned trader out there has probably applied this indicator to analysing the price chart in order to make a sound trading decision.
Publication date: 31 May 05:50 AM