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Trading Styles

There isn't a single trading strategy that outperforms the rest.
The amount of time you want to stay in a trade, the timing of your entry, and occasionally the frequency of the trades distinguish the trading methods.
There are four main styles of trading:
  1. 1.
    Scalping
  2. 2.
    Day trading
  3. 3.
    Swing trading
  4. 4.
    Position trading
The difference between the styles is based on the length of time that trades are held for.
  • Scalping trades are only held for a few seconds, or at most a few minutes.
  • Day trading trades are held for anywhere from a few seconds to a couple of hours.
  • Swing trading trades are usually held for a few days.
  • Position trading trades are held for anywhere from a few days to several years.
The table below provides typical timeframes for the different types of trading styles.
Timeframe
Scalper
Intraday
Swing
Position
1 Minute
X
5 Minute
X
X
15 Minute
X
30 Minute
X
1 Hour
X
X
4 Hour
X
X
1 Day
X
X
1 Week
X
X
1 Month
X
New traders may find it challenging to select their trading style, but doing so is essential to their long-term success as traders.
Changing trading techniques (and trading systems) at the first indication of difficulty is one of the biggest mistakes.
Changing your trading style or method frequently is a guaranteed way to lose all of your money.
Once you become comfortable with a certain trading approach, stick with it; in the long run, it will reward you for your persistence.
When choosing a trading strategy, it's important to be adaptable enough to recognize when a strategy isn't working for you. You also need to be consistent enough to remain with the strategy even when it's not working.