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Wednesday, 27 May 00:55 (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

 

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Forex and Cryptocurrencies Forecasts. End of May 2020.

Right before the start of the last trading week of May, 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 May 25th - 29th. So, this is what those predictions look like:
Publication date: 24 May 01:41 PM

Only 4 Of All Existing Billionaires Made Their Fortunes With Cryptocurrencies

Publication date: 25 April 11:54 AM

Bitcoin Grows. EOS May Lead The Market Thanks To Blockchain

Bitcoin gained a good momentum along with the rest of the cryptocurrency market after good news from China. However, EOS may become the locomotive of the movement.

Publication date: 22 April 01:54 AM

DNB's Open For CBDC

De Nederlandsche Bank (DNB), the central bank of the Netherlands, is reported to be open for the CBDC of the ECB. CBDC stands for central bank digital currency. This was officially backed by a 45-page report released on April 21st. With that being said, DNB is ready to play one of the key roles in adopting digital currencies by the global banking system.

Publication date: 22 April 12:47 AM

Bad Economic Figures From USA. Wall Street Reacts.

This time, we are dealing with a peculiar situation. In particular, now that we are facing truly bad figures, the market reaches to them not the way we expected. When it comes to fighting the COVID-19 pandemic, there's almost no positive progress. That's is why international investors are now trying to find some good news in the economic field. Can we actually see some improvements?

Publication date: 02 April 04:04 AM

Dollar Regains Strength, NordFX Reports

Right before the start of another trading, 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 March 30th - April 3rd. So, this is what those predictions look like:

Publication date: 01 April 02:15 PM

Binance and Cryptocurrency Exchange

These days, Binance is a a giant in the world of cryptocurrency exchange. It wont' be an exaggeration to say that this is a Microsoft or a Mercedes in the world of cryptocurrencies. This is a major brand and a symbol of security for those investing in Bitcoin and other digital currencies.

Publication date: 29 March 11:24 PM

Dollar Becomes Safe-Haven Asset Amid COVID-19 Pandemic

Publication date: 22 March 07:48 AM

Fed Cuts Interest Rates. What Does It Mean For Bitcoin?

Publication date: 17 March 12:14 AM

Fed Cuts Interest Rates Again Amid COVID-19 Pandemic

The U.S. Federal Reserve, which can be considered the world's most influencial central bank, has been really serious about the COVID-19 pandemic going on around the world. For the first time in the history of the Federal Reserve, the central bank has done it twice within a couple of weeks. This time, the key interest rate was cut by 100 basis points, which brought it very close to zero. To be more specific, during the recent urgent FOMC meeting that took place on Sunday, March 15th, the FOMC members almost unanimously decided to cut the interest rated from 1,00-1,25% all the way down to 0,00--,25%.

Publication date: 16 March 07:57 AM