Scalping vs. Swing Trading: Quick Keys
* Scalping:
* Duration: Seconds/Minutes.
* Objective: Small profits, many trades.
* Risk: High stress, high commissions due to volume. Requires high concentration and speed.
* Profile: Fast, disciplined, agile reflexes.
* Swing Trading:
* Duration: Days/Weeks.
* Objective: Larger profits per trade, fewer trades.
* Risk: Less daily stress, greater overnight exposure.
* Profile: Patient, analytical, trend and pattern-based.
Smart Leverage (Binance Futures)
* What is it? Trading with more capital than you have, magnifying profits... and losses.
* Smart Use:
* Start low: 2x-5x is ideal for beginners.
* ALWAYS Stop-Loss! Protect your capital from liquidations.
* Isolated Margin: Use this to limit risk to a single position.
* Don’t leverage your entire portfolio.
Risk Management: Your Survival
* Define your Risk per Trade: Don’t risk more than 1%-2% of your capital per trade.
* Use Stop-Loss (SL): Automatic exit to limit losses. Mandatory!
* Define Take-Profit (TP): Automatic exit to secure profits.
* Risk/Reward Ratio: Aim to gain at least 2-3 times what you are willing to lose.
* Don’t average down without a plan: Avoid adding capital to a losing position without solid analysis.
* Keep a journal: Learn from your trades.