Heroes of Ukraine

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

Friday, 18 September 18:00 (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 »
 

How To Get Ready For Bitcoin Boom 2020?

Cryptocurrencies keep on growing in value. If you are going to buy your first coins, this is what you should do first.
Publication date: 30 August 11:27 AM

U.S. Tech Companies Increase Stock Buyback

Publication date: 20 August 06:10 AM

Altcoin Mining Account For Over 30% Of Overall Crypto Mining Consumption

Scientists for the University of Munich urge the regulators to go beyond the BTC scope when it comes to crypto mining affecting the environment. They say that Bitcoin accounts for over 66% of the entire energy consumed by crypto mining, based on the basic algorithms, the current hashing speed, and the mining equipment used, while altcoins account for the rest of it. Consequently, altcoins add almost 50% on top of Bitcoin's energy demand, which in itself may result in considerable damage to the environment.

Publication date: 09 August 11:06 AM

GBP Prospects After BoE's Interest Rate Decision

The United Kingdom's financial authorities have published the information on its money-and-credit policy:
- The interest rate decision: 0,10% (prediction: 0,10%, previously: 0,10%)
- BoE's MPC: votes for interest rate cuts: 0 (previously: 0)
- BoE's MPC: votes for interest rate hikes: 0 (previously: 0) 
- BoE's MPC: votes for keeping the interest rate unchanged: 9 (previously: 9) 
- BoE's total QE: 725 billion pounds (prediction: 725 billion pounds, previously: 725 billion pounds)
Publication date: 06 August 08:32 AM

USA Sponsors Experimental COVID-19 Vaccines

A billion dollars for 100 million dozes of a vaccine that's not create yet. The U.S. Government has already paid for a potential vaccine. This is yet another transaction of that kind. This time, the money was paid to Johnson & Johnson. Apparently, the government has been sponsoring all kinds of experimental vaccines. Basically, Johnson & Johnson is expected to ship 100 million dozes of this vaccine at the price of 10 dollar per doze.

Publication date: 05 August 07:30 AM

Bitcoin Reaches $9500. Will It Drive Crypto Market Rally?

The BTC exchange rate has finally broken free from from the narrowing price range and rallied above $9500 per coin. What's coming next? Will the coin test $10000? If so, will this test be successful?

Publication date: 26 July 10:59 AM

Ethereum and Bitcoin Are Close To 5-Month and 1-Month Highs Respectively

After going out of the triangle in the first half of the trading week, Bitcoin started growing faster on Tuesday and Wednesday, thus gaining over 4% in 2 days and testing 9573 dollars per coin, the highest level in 4 weeks. Still, Thursday's session brought a modest correction down and a move back to 9500 dollars per coin and below. In the broad market of cryptocurrencies, Ethereum is the best performer. It has already gained over 7% over the last 24 hours and is currently testing 270 dollars per coin.
Publication date: 26 July 10:08 AM

China Will Test Digital Yuan On Food Delivery Platform

The People's Bank of China is planning to test the digital yuan by putting it to good use with the help of Meituan Dianping, a Beijing-based food delivery platform. It should be noted that this is a rather popular platform with 435 million active users, processing billions of dollars in transactions on a daily basis. Apparently, this opens big opportunities for mass introduction of the digital yuan, which is also known as the Digital Currency Electronic Payment (DCEP).

Publication date: 23 July 09:57 PM

Japan Will Include CBDC In Its Official Economic Plan

The Japanese government is planning to include the CBDC (Central Bank Digital Currency) in their official economic development plan. The information appeared 10 days after the Bank of Japan announced their plans to experiment with the digital yen in order to figure out what it is capable of in practice.

Publication date: 20 July 02:53 AM

World's Biggest Crypto Scams

In his article on the website called Cointelegraph, Nick Bell described the most famous cryptocurrency scams known. In each fo them, investors collectively lost billions of dollars. The sad thing is, many of those scammers remain unpunished by the law.
Publication date: 17 July 09:14 AM