Declining Market: Should one choose Scalping or Swing Trading to protect their capital?
When the market turns red, many traders panic. However, the decline is a market condition like any other. To take advantage of it, you need to choose a method that suits your risk profile. As a Risk Management educator, I will break down two concrete approaches for you.
1. Scalping: Hunting for micro-opportunities
Scalping involves taking quick profits over very short periods (minutes).
In a bear market: We favor 'Shorts' (short sales) on small rejection candles.
Risk: Very high due to volatility.
G.R. Advice: Don't aim for the moon. Take your profits in $USDT as soon as possible. A scalper who doesn't know how to exit is a future liquidation.
2. Swing Trading: Playing the relief bounces
Swing Trading spans several days. In a full 'Bear Market', prices do not drop in a straight line.
The tactic: Identify historical supports on $BTC or $ETH to play the 'Bear Market Rallies' (temporary rebounds).
G.R. Advice: Your targets should be the former support areas that have become resistances. Don't be greedy.
Conclusion :
Scalping requires iron discipline, while swing trading requires patience. In both cases, never trade without a defined plan.
👉 Do you prefer the adrenaline of Scalping or the strategy of Swing Trading to navigate this decline? Go to the Binance Futures interface to test your strategy with a small position size!
