Explore different trading strategies from scalping to swing trading. Learn when and how to apply various approaches based on market conditions and your lifestyle.
Each trading strategy has its own characteristics, requirements, and suitability for different trader types. Choose the one that matches your lifestyle, capital, and risk tolerance.
Ultra-short-term trading strategy capturing small price movements
Trading positions opened and closed within the same trading day
Medium-term strategy capturing price swings over several days
Long-term strategy based on major economic trends and cycles
Quick comparison of key metrics to help you choose the right strategy for your situation.
| Metric | Scalping | Day Trading | Swing Trading | Position Trading |
|---|---|---|---|---|
| Time Commitment | Full-time (8+ hours) | Part-time (4-8 hours) | Casual (1-2 hours) | Minimal (<1 hour) |
| Trades per Day | 50-200+ | 5-20 | 0-3 | 0-1 |
| Average Profit | 5-15 pips | 20-100 pips | 100-500 pips | 500-2000+ pips |
| Required Capital | $500-2,000 | $2,000-10,000 | $5,000-25,000 | $25,000+ |
| Stress Level | Very High | High | Medium | Low |
| Analysis Type | Technical Only | 90% Technical | 70% Technical | 60% Fundamental |
These are time-tested setups that work across different timeframes and market conditions. Master these patterns before exploring more complex strategies.
Trading when price breaks through key support or resistance levels
Above resistance (buy) or below support (sell)
Opposite side of broken level
Next major level or 1:2 risk/reward
All timeframes
EUR/USD breaks above 1.1000 resistance with volume, enter long at 1.1005, stop at 1.0980, target 1.1055
Entering trades in direction of main trend after temporary pullback
When price returns to moving average or Fibonacci level
Below pullback low (uptrend) or above high (downtrend)
Previous high/low or extension levels
4H, Daily
GBP/USD uptrend pulls back to 50 EMA, enter long at 1.2650, stop at 1.2600, target 1.2750
Buying at support and selling at resistance in sideways markets
Buy near support, sell near resistance
Outside the range
Opposite side of range
1H, 4H
USD/JPY ranging 109.50-110.50, buy at 109.60, stop 109.30, target 110.30
Trading when fast MA crosses above/below slow MA
When fast MA crosses slow MA in trend direction
20-30 pips or below recent swing
Until opposite crossover or target level
4H, Daily
20 EMA crosses above 50 EMA on AUD/USD daily, enter long, stop below recent low
The mental game is crucial for trading success. Here's how to maintain the right mindset throughout different phases of your trading day.
"Prepared and confident, but not overconfident"
"Disciplined patience, quality over quantity"
"Confident execution, trust the process"
"Adaptive management while staying disciplined"
"Objective self-assessment, continuous improvement"
Consider these factors when selecting the right trading approach for your situation
You've learned proven strategies and psychology principles. Ready for the final lesson that puts it all together with practical steps to begin trading?