The exciting thing about trading is that there are different routes that you can take to be successful. If you’re interested in learning new techniques, here are two of your options: Scalp trading and Swing trading.
In scalp trading, the goal is to make a profit on small price changes. To make a large profit, traders must be constantly making trades, with most trades happening within minutes of each other. Scalp Traders usually focus on 1-minute, 5-minute or 15 minute price charts.
Scalping requires traders to have a strict exit strategy, because one large loss could eliminate the success from the small profits that they have earned. A successful scalper will have a much higher ratio of winning trades than losing ones, while keeping profits roughly equal or slightly bigger than losses.
Swing trading is a style that attempts to capture short- to medium-term gains over a period of a few days or even weeks. The time frame for swing trading is longer than day trades, but much shorter than long-term investments, and the goal is to make profits from price swings in the market.
For success, swing traders should use fundamental analysis, while also analyzing the price trends and patterns. Many swing traders utilize an established risk/reward ratio based on a stop-loss and profit target or they take profits based on price action movements.
Scalp or Swing – Which one is better?
It depends on your preference. If you want to make quick trades, aiming for your small profits to add up, then Scalp trading may be for you. If you have more patience and want to wait for bigger profits, then swing trading may be your choice.
Keep in mind that you can try both types of trading. In fact, experts recommend mastering both techniques, as both can be lucrative in different situations.
To master different techniques, consider getting advice from Forex professionals, perhaps through live trade rooms. One of the most effective ways that many successful traders have learned is through live trade rooms. When you join a community of traders, you can all learn from the successes and missteps of others.
Trade room experience also helps you learn how to diversify your portfolio, which will spread your investments around to balance your risk and rewards. Aside from learning about scalp and swing trading, you’ll learn how to diversify your portfolio. A diversified portfolio will balance your risk and rewards by spreading your investments around so that your exposure to one asset is limited. At Auvoria Prime, we have live trade rooms where Forex professionals are on hand to coach you in AP LIVE.