#TradingStyle and when to use what
1. Scalping
💰What is it: Very short-term trading to profit from second/minute price movements.
💵 When to use it:
- in highly liquid markets (BTC, ETH, etc.)
- when spreads are tight and volatility is high
- if you are experienced, have fast reflexes, great execution tools and lots of time.
2. Day trading
💰What is it: Entering and exiting positions within the same day to avoid overnight risk.
💵 When to use it:
- highly volatile markets with intraday repeating patterns
- if you can dedicate a few hours everyday to watch the market
- when macro and micro news catalysts are scheduled and there are no sudden chaos.
3. Swing trading
💰What is it: Holding trades days to weeks to capture medium-term trends.
💵 When to use it:
- when market fluctuates in large range
- you want fewer trades but bigger moves, can only look at the chart once or twice a day
- in lower volatility setups.
4. Trend trading
💰What is it: Trading based on underlying trends and macro cycles in weeks to months.
💵 When to use it:
- during macro bull/bear markets or major shifts
- you don't want to deal with short-term noises and have minimal screen time.
5. Algorithmic trading
💰What is it: Using automated systems or bots to trade based on preset rules and strategies.
💵 When to use it:
- if you're technically skilled and want to eliminate fear/greed
- market conditions are repetitive or range-bound.
6. Event trading
💰What is it: Volatility trading around news that drives markets.
💵 When to use it:
- when major announcements, reports or data releases are about to happen
- you're aggressive traders who can feel the sentiment and act quickly
- you have access to real-time information.
Overall, it depends on your available time, risk tolerance, and experience to choose one or some styles that suit you best.