(25th-December-2019)
4) Swing Trading:
In swing trading, a longer time is taken before decisions are made unlike in day trading but it still classifies as short term trading because decision is made in days while long-term trading could take as many as months to monitor. In swing trading, an opening is made and is left for a long period of time during which the trader watches the market and should be relaxed or patient enough not to panic at slight market fluctuations.
Swing traders are more patient that day traders, they are more calculated and likely have taken time to understand market fluctuation of coins enough to know that even with drop in values there could be a profitable growth around the corner. Swing trading is the most popular type of trading involved in and is even more profitable when limit orders with a wide margin are used to control openings and lock in profits. The chart below shows the timeline holdings are left open by swing traders.
Swing traders that have had prior experience trading forex and other stock trading may be at advantage sing swing trading because they are better with market analysis and are less likely to fall to quick news of value drops.
5) Position Trading:
Position trading can be considered a long-term trade just like buy and hold and sometimes is used synonymously with buy and hold. Position traders simply put are traders that are willing to take their eyes off the market charts for a while and do other things, this type of traders do not depend on cryptocurrency trading as their daily means of livelihood.
Position trading requires a certain amount of trust in cryptocurrency holdings, most likely attained after an in-depth study of the white paper and previous market history of the cryptocurrency of interest.
These type of traders are the ones who ask questions and access the coin’s future prospects in the market. While a critical look at coins of interest is important before deciding to invest in it, this category of traders is likely to do an even more thorough research. It is not ideal for people that plan to make a living out of crypto trading and is even considered more as an investment than a trade.
At the end of the day, success in any type of trading has a lot to do with an understanding of one’s self and their level of experience and/or exposure to trading in the past and even when this quality has not been assessed, trading in small quantities can help in figuring it out.
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