Know Your Trading Style Before You Trade
Before diving into the crypto markets, it’s crucial to understand the different trading types—each with its own strategy, risk profile, and time commitment. The four main types are:
1. Scalping: Ultra-short-term trades that last minutes or seconds. Requires fast decisions and high focus.
2. Day Trading: Positions are opened and closed within the same day to avoid overnight risks. Ideal for active traders.
3. Swing Trading: Holding positions for days or weeks based on technical and fundamental analysis.
4. Position Trading: Long-term holding based on macro trends, often similar to investing.
Each type requires different tools, discipline levels, and risk management techniques. Choose a style that fits your lifestyle and psychology—don’t just copy others.
Understanding your trading type helps you stay consistent, manage emotions, and improve over time.