In trading, the trading level refers to the strategy and operation cycle chosen by traders based on the time frame. Different trading levels suit different trading styles, risk preferences, and market conditions. Understanding trading levels helps in formulating a trading plan that suits oneself and improves trading efficiency.
Trading levels are usually categorized based on time frames and can be divided into the following main categories:
🚀🚀 How to choose a trading level that suits you?
Choosing the right trading level requires a comprehensive consideration of the following factors:
1. Time Investment:
If you can monitor the market full-time, ultra-short-term or intraday trading may be more suitable.
If time is limited, you can choose short-term or medium-to-long-term trading.
2. Risk Tolerance:
Traders with a high risk preference can choose ultra-short-term or intraday trading.
Investors with a lower risk preference are more suited for medium-to-long-term trading.
3. Trading Experience:
Beginners are advised to start with short-term or medium-to-long-term trading to avoid frequent operations.
Experienced traders can try mixed trading or multi-time frame analysis.
4. Market Environment
High-volatility markets (such as cryptocurrency bull markets) are more suitable for short-term and intraday trading.
Low-volatility markets are more suitable for medium-to-long-term trading.