What's the most profitable type of trading?
TRADINGFEATURED
"Breaking down my experience with each trading style. The good, the bad and the ugly"
Breaking down my experience with each trading style.
The good, the bad and the ugly.
SCALP TRADING
The bad and the ugly
Fast pace, a lot of time and attention is required.
Much more stressful than other strategies.
My result was not good due to over-trading.
The good
Helped refine/practice my strategy.
Helped perfect my risk management.
Did I continue scalp trade - Personally no, it did not suit my lifestyle.
DAY TRADING
The bad and the ugly
Can be emotionally draining at times if you have to monitor positions all day.
Slightly more time-consuming than scalping.
Anxiety to get a profitable trade before the market closes.
The good
Allows more time to analyze the market.
A lot more intense compared to scalping.
Potential to make higher returns.
I had much better results here.
Did I continue to day trade - Yes. When the market presents a good opportunity.
SWING TRADING
The bad and the ugly
Requires a lot of patience and discipline.
Exposure to the market for much longer periods.
Nerve-racking having positions open for the next days.
The good
Allowed me much more time to prepare.
Allowed me a lot more flexibility while trades were open.
Much more successful and has higher accuracy due to trades developing over longer periods.
I opened myself to a much greater profit in percentage.
A lot less stressful as the market was more predictable.
Would I continue to swing trade - Yes, this is my by far preferred method of trading.
POSITIONAL TRADING
The bad and the ugly
It required a lot more patience than any other method.
Opened myself up to the market risk for longer.
I had limited flexibility due to capital being tied up for many months.
The good
Opened myself up to profit from much larger price moves up to 25% and more.
Much less susceptible to short-term market risk.
I had more time due to less commitment needed to monitor positions.
Allowed me to introduce myself to fundamental analysis.
Would I continue positional trading - Yes, only if I have capital free at the time a position is developing.
Credit: Quora