Types of Trading Strategies

1. Scalping

Entering and exiting trades within minutes.

Relies on small and quick movements.

Requires high focus and quick decision-making.

Often uses leverage and indicators like RSI and MACD.

2. Day Trading

Opens and closes trades within the same day.

Does not leave the trade open for another day.

Relies on news and quick technical analysis.

3. Swing Trading

Holds the trade for days or weeks.

Depends on trends and moving averages.

Requires patience and deeper analysis.

4. Position Trading

Holds a currency or stock for months or even years.

Focuses more on fundamental analysis.

Concerned with the project or company behind the financial asset.

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⚠️ Second: Components of a Successful Trading Style

1. Market Analysis:

Do you use charts? Indicators? News?

2. Capital Management:

What percentage of your capital do you enter with?

Do you use stop loss? Or not?

3. Psychological Discipline:

Do you exit quickly when you profit? Or are you afraid and sell at a loss?

Do you follow a plan? Or act randomly?

4. Your Goals for Trading:

Do you want daily income? Or do you want to double your capital in the long term?

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🧠 Example of Style Analysis:

If you are for example:

Entering the market after hearing news about a currency,

Buying without a clear plan,

And fearing and selling as soon as you see a 5% loss,

Then this is an emotional, unorganized style that needs development in terms of:

Defining a plan