What is Your Trading Style? Tradewell.io agents share some insight into the six major styles of trading cryptocurrencies and to help you decide which best suits your needs.
When trading cryptocurrency, you may notice that there are several trading styles to choose from. Every trader needs to understand the basics of each trading scheme, but sometimes these are not so easy to comprehend and follow. At Tradewell.io trading platform the company assigns a dedicated account manager to each client’s portfolio and the trading strategies are worked on, taking into consideration the client’s needs and available funds. The dedicated account manager is looking out for the client’s investment safety, while making sure the customer can still enjoy a lucrative investing option.
Selecting your trading style might take some time and effort but Tradewell agents strongly believe in following a clear path and sticking to it, for your investment safety and in order to maximizing returns.
Here are the six main cryptocurrency trading styles Tradewell has analyzed as being trendy and popular:
1. Day Trading – This type of trading is exactly what it’s called—trades that take place over the course of a day. It is similar to scalping, but because the trade runs somewhat longer, a bit more profit is expected on each trade.
2. Range Trading – Range trading is a type of day trading, but with the goal of trading within a predefined range. Range traders avoid buying into an uptrend or buying after a downtrend. Instead, they stick to buying at the bottom of the range with a stop and then selling at the top or scaling out towards it.
3. Intra-Day Trading – Also a type of day trading, this style is only different because it permits holding positions over more than just a single day. The market never really closes, so in reality, a trading day doesn’t end. Some intra-day traders use software to automate positions.
4. Swing Trading – This type of trading occurs over a large range. Swing traders open positions at what they calculate to be the bottom. They then attempt to hold the position until it reaches the top, or gradually scale out of it to secure profits. This style of trade typically happens over the course of several days or even weeks. Traders who enjoy analyzing patterns and are able to stay calm as the trade swings up and down in waves may prefer this style of trading.
5. Position Trading – Although it is known as the simplest form of trading, this style requires a lot of discipline. Position traders have to hold on through bear and bull markets and crazy fluctuations, especially in the cryptocurrency market. The idea of this type of trading is to plan on taking a short position high or a long position low and sticking with it for longer periods ranging for weeks, months, or even years. Position trading is similar to swing trading and investing, but the goal is to make longer-term trading gains based on leveraging overarching trends.
6. Investing – Investing and trading are two different things. Nevertheless, investing also involves a certain amount of buying and selling. Investing has the general objective of making a profit over time and therefore, some prefer this over trading per se. It is a longer-term option, usually with minimal interaction.
Finding a Style That Works for You
The right trading style is an individual choice. One could embark upon any trading style in one shot or can ease into it with small buys over a period of time. No matter which style you choose, trading requires patience. It is important to stay calm through the fails and not to judge a style based on minimal results in a short space of time. The goal is to not to be right every time, but rather to be right more often than wrong. Once you find a style that suits you, take time to refine it. Don’t switch it when things look like they’re going wrong, rather calibrate it and be sure to use the correct type of risk-management tactics through a good, effective platform like Tradewell.io. This way, you can ensure that the lessons you learn stay affordable.
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