To succeed on the way of trading, if you know technical analysis, good psychology, tight capital management, there is 1 more important thing that you must know what type of trader you are suitable for. From there, apply the analysis to Time Frames (Time Frames) in accordance with your trading style to be able to optimize the trading system in the best way.
Blackmantrader would like to introduce to you 4 trading styles to make up 1 trader today:
- Scalping trader: is a trading style with a very short position holding time, only from a few minutes to a few hours. Traders who pursue this style are those who prefer speed and high risk. They have a lot of time to devote to analysis and trading, a day can open from a few dozen to several hundred orders, so suitable time frames for this style are short time frames such as M1, M5, or M15.
- Day trading: is a trading style where the position is held for several hours and closes the position before the end of the day trading session, meaning that the position will not be held overnight. Day trading is also a short-term trading style, along with scalping trading but it uses longer time frames such as H1, H4, D1. This is also the style pursued by many new traders.
- Swing trading: People who pursue this style usually do not have too much time to devote to trading and monitor the market constantly, so their position holding time ranges from a few days to several weeks. Timeframes suitable for this style include D1, W1.
- Position trading is the style with the longest holding of positions, from weeks to months. Those who pursue this trading style prefer safety and aim for long-term profits or value investing. Time frames that fit this style are usually W1, MN.
The mistake most newbies make is choosing to trade scalping traders. Because they like the feeling of opening and closing orders to see profits immediately, but most of them feel miserable defeat due to not being equipped with sufficient knowledge, along with too much trading frequency, causing psychological instability, the market pace is too fast to give highly accurate analysis.
Blackmantrader’s advice for newbies to choose a trading style is Day Trader. The reason is that when trading with this style, the number of orders in the day you will enter is not too much, but you still have time to observe and gradually understand the market in the first days of getting acquainted. From there, gradually improve your knowledge and abilities to be able to continue the long journey on the way of trading.