• 🚫 This article does not give investment advice 📊
This article is directed to the event #CryptoTradingGuide
This activity was proposed by @Binance Square Official ✅, Binance official account.
• 📖 This article is educational 👨🏫
Crypto Trading Strategies:
📊 One of them is Day trading.
❓What is day trading? :
It is a strategy where you can enter and exit positions during the same trading day.
This strategy can also be called day trading.
The goal of day traders is to use intraday trading strategies to try to make a profit from price changes.
The term "day trader" has its origins in the stock market, where trading is only active during business days of the week.
In this context, day traders never leave positions open from one day to the next, since their objective is to capitalize on intraday price movements.
📊 Another strategy is Range Trading.
❓What is range trading? :
The concept of range trading is based on the assumption that the extremes of a range will remain as support and resistance until it is broken.
This means that the lower end of the range will likely drive the price up, while the upper end will likely drive it down.
The longer the price touches a support or resistance level, the more likely the level is to break.
Range traders will always prepare for the possibility that the market could break out of the range. Typically, this means setting a stop-loss at a level where the range breakout is confirmed.
📊 There is also the high frequency strategy (HFT)
❓What is high frequency trading? :
It involves developing algorithms and trading bots that can quickly enter and exit many positions in a short period of time.
❓ How short are these deadlines?
A few milliseconds of head start for a high-frequency trading company can provide a significant advantage over other companies.
HFT algorithms can be created to implement highly complex strategies.
High frequency trading includes many backtesting, monitoring and adjustment algorithms to adapt to changing market conditions.
High-quality information is difficult to obtain for the general public.
❓ Why is that? :
If successful trading firms and hedge funds started sharing their high-frequency trading strategies with individual investors, those strategies would no longer work.
So be careful ⚠️ when they try to sell you a course with a secret technique, it could be a scam.
⚠️ Ask this question:
❓why don't Bots use it instead of selling it?
Be especially careful when thinking about purchasing a high frequency trading bot.
📊 Swing trading :
❓What is high frequency trading? :
It involves holding positions for more than one day, without exceeding a period of a few weeks or a month.
In a sense, swing trading is somewhere between day trading and trend trading.
They typically try to profit from waves of volatility that develop over several days or weeks. They may use a combination of technical and fundamental factors to formulate their trade ideas.
A significant advantage of swing trading over day trading is that swing trades take longer to develop. And yet, they're short enough that they're not too difficult to follow.
This gives traders more time to consider their decisions.
In most cases, they have enough time to react to how the trade is developing. Decisions can be made less hastily and with more rationality. In contrast, day trading often requires quick decisions and agile execution, which is not ideal for beginners.
📊 Trend Trading:
❓What is trend trading? :
It involves holding positions for a longer period of time. Trend traders try to take advantage of directional trends. They may enter a long position in an uptrend and a short position in a downtrend.
Trend traders will generally use fundamental analysis, but this may not always be the case. Still, fundamental analysis considers events that can take a long time, and these are the movements that trend traders try to take advantage of.
A trend trading strategy assumes that the underlying asset will continue to move in the direction of the trend, you can also incorporate moving averages, trend lines and other technical indicators into your strategy to try to increase your success rate and mitigate financial risks.
It can be ideal for beginner traders if they do their due diligence and manage risk properly.
📊 Scalping :
❓What is Scalping? :
Scalpers do not try to take advantage of big moves or long trends.
It is a strategy that focuses on exploiting small moves over and over again. For example, taking advantage of bid-ask spreads, liquidity gaps, or other inefficiencies in the market.
It is quite common to see scalpers opening and closing positions in a matter of seconds. This is why scalping is often linked to high frequency trading (HFT).
Scalping can be an especially lucrative strategy if a trader encounters a market inefficiency that occurs over and over again that they can exploit. Each time it happens, they can make small profits that add up over time. Scalping is generally ideal for more liquid markets, where entering and exiting positions is relatively smooth and predictable.
Scalping is an advanced trading strategy that is not recommended for beginner traders due to its complexity. It also requires a deep understanding of the mechanics of markets. Other than that, scalping is generally more suitable for big traders (whales). Win percentage targets tend to be smaller, so trading larger positions makes more sense.
• 🚫 This article does not give investment advice 📊
This article is directed to the CryptoTradingGuide event
• 📖 This article is educational 👨🏫
Thanks for reading 📖
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