There are three different styles that traders can choose from in Trade Setup. Each approach relies on expertise, analytical tools, and different lifestyles. Here are the details:
Day Trading
This style of trading focuses on buying and selling to make a profit within the same day or sooner. It can range from trading within an hourly time frame to as short as 30 minutes to 4 hours. Day traders need to use shorter timeframes and smaller candlestick charts because trading within shorter timeframes involves higher price volatility compared to longer timeframes. Day traders need to closely monitor the market and require a higher level of expertise.
They must also exercise discipline in taking profits and cutting losses since day trading aims for a profit of only 3-5% per trade. If a trader has greed or fear and expects higher profits or is unwilling to cut losses when necessary, it can hinder the success of day trading.
Swing Trading
This style of trading focuses on buying and selling to make a profit over a longer time frame than day trading. It can start from a daily time frame and extend to a weekly timeframe. Swing trading aims for a profit of 10% or more per trade since it utilizes larger timeframes, which allow for higher returns.
Traders who are suitable for this style do not necessarily require a high level of expertise or constant market monitoring since swing trading does not emphasize short-term profits. However, they still need to be skilled in using technical analysis tools and exhibit patience in waiting for profits. Sometimes, in swing trading, prices may not immediately generate profits but may require a longer wait.
Run Trend:
This style of trading relies on the longest time frames among all Trade Setup approaches. Traders hold futures contracts in larger timeframes, starting from weekly timeframes, to make a profit of 20% or more. In run trend trading, traders do not close their positions and take profits until the price trend changes direction. For example, if a trader holds a long position in futures during an upward trend, they will not sell to take profits until the price either reaches a target or changes to a downtrend.
Traders who adopt the run trend style must have extremely high discipline and patience because their nature is to hold profitable futures for a long time. However, it is suitable for traders who have limited time to actively monitor the market, as it does not focus on short or medium-term profits but rather on long-term gains.
Traders can choose any of these three trade styles based on their preferences and personal suitability. Some may prefer to make short-term profits, while others may have the patience for long-term gains. The important thing is to choose the right approach that aligns with one’s own trading style and not go against one’s daily lifestyle.
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