Trading Strategies

Scalping involves making many small trades to profit from small price movements. Trades typically last seconds to minutes, targeting just a few pips per trade.

• Very short holding periods (seconds to minutes)
• High number of trades per day (10-100+)
• Small profit targets (1-5 pips)
• Requires tight spreads and fast execution
• Best on 1-minute to 5-minute charts

Day traders open and close positions within the same trading day. They avoid overnight risk by closing all trades before the market closes.

• All positions closed before market close
• No overnight risk or swap charges
• Uses 5-minute to 1-hour charts
• Requires time to monitor markets
• Multiple trades per day (5-20)

Swing traders hold positions for several days to weeks, capturing medium-term price movements and trends.

• Positions held from days to weeks
• Uses daily and weekly charts
• Fewer trades, larger targets
• Can be done part-time
• Requires patience and discipline

Position traders hold trades for weeks to months, following long-term trends. They focus on fundamental analysis alongside technical analysis.

• Long-term approach (weeks to months)
• Based on fundamental analysis
• Uses weekly and monthly charts
• Larger stop losses needed
• Minimal time commitment

Trend followers identify the direction of the market and trade in that direction. They buy when prices are rising and sell when prices are falling.

• Trade in the direction of the trend
• Use moving averages to identify trends
• Buy dips in uptrends, sell rallies in downtrends
• Works across all timeframes
• Requires patience during consolidation

Breakout traders enter positions when price breaks through support or resistance levels with increased volume, expecting the move to continue.

• Enter when price breaks key levels
• Look for volume confirmation
• Set stop loss on the other side of the breakout
• Works well with chart patterns
• Can result in large moves