Topic: Basic Types of Trading (Read 608 times)
It depends on how you become a trade some of the people does not want to watch the market over the whole time and they make long term trading its more ideal with this is the spot trading you can manage with the buy low and selling high the coin you have, next is the short term trading this kind of trades mostly happens in the futures trading in this trade we must need to have a fundamental knowledge with the basics such as the technical analysis, technical indicator, leverage and the TP and SL. It depends on the trader what kind of trade they will try to apply.
In my case I do the trade that is in the medium and long term, the reason is simple, if there is a significant movement of the market it gives me time to react, if I start sclaping, which is the short-term trade, or trade at very short term, I am not that fast, and well I think that this way I would lose a lot of money, for me long-term trading is safer because I would react and I think I would react in time, of course I would do this with a good Stop Loss to protect myself Although currently there are some exchanges that have tools such as those offered by bitfinex, which is to have the stop loss and take profit at the same time, only then would it ensure well not to lose in the movement.
In general, I do not try to divide trading into any types and so on. For me, trading is just a process of working based on the knowledge and experience of a trader.
For newbies, spot trading will be a better type of trading as they do not have to worry about the price and as long as they can hold the coin and not sell at a low price, they will have a chance to sell at the next high price.
Future and margin trading will not suit newbies, especially if they do not have much knowledge in analyzing the market and they will panic to see the price is down for a little.
While in spot trading, you are not actually losing if you do not sell your coin, in the future and margin trading, you can lose all of your funds if you do not close your trade.
Be careful deciding which types of trading you want and I suggest using spot trading while learning more about trading.
Future and margin trading will not suit newbies, especially if they do not have much knowledge in analyzing the market and they will panic to see the price is down for a little.
While in spot trading, you are not actually losing if you do not sell your coin, in the future and margin trading, you can lose all of your funds if you do not close your trade.
Be careful deciding which types of trading you want and I suggest using spot trading while learning more about trading.
Trading in futures for newbies will never be profitable, this is the easiest way how to throw away your money in an instant, unless you have someone that is giving you free signals on what coin you will enter a trade on a certain price and exit the market on a certain price, then that's a different situation. However, if a person is entirely exploring how futures trading work, he is only gonna lose his money while being frustrated on figuring out how to chase his losses.
Probably some times, I had seen many coins like they down by 1000 of percent and due to the attack of some hackers the coin lose its price or even some coins lose their liquidity, which affect many of the traders, as I had seen a coin Squid coin which dropped by many percent in which most of the traders lose their money, which is very bad for the trader and their investment.
I suggest for beginners it is better to take the spot method. This method is much safer for them, because they will not lose a lot of money if they fail. They just need to be more patient when the coins they have haven't gone up yet this is quite a difficult challenge, usually many traders are stuck with their own emotions. For the Future method, this seems more complicated for beginners.
They are both different things or type of trading. Hodling is not trading and a trader can also hodl same coin so it is not only for beginners to get such advise. However a beginner can desire to trade, he or she can therefore learn how to do that. Learning it is to know the level of risk involved in it and the elementary of trade. Emotions involved in it is important because hodling is far different with trading that carried fast volatility and high risk.
But that's how a trader will target a sell mark in a short time with a small percentage profit.
I suggest for beginners it is better to take the spot method. This method is much safer for them, because they will not lose a lot of money if they fail. They just need to be more patient when the coins they have haven't gone up yet this is quite a difficult challenge, usually many traders are stuck with their own emotions. For the Future method, this seems more complicated for beginners.
They are both different things or type of trading. Hodling is not trading and a trader can also hodl same coin so it is not only for beginners to get such advise. However a beginner can desire to trade, he or she can therefore learn how to do that. Learning it is to know the level of risk involved in it and the elementary of trade. Emotions involved in it is important because hodling is far different with trading that carried fast volatility and high risk.
There are basically two types of trading on binance generally (SPOT trading and FUTURES trading
📌 Spot Trading: you buy any coin of your choice at any given rate, you HODL for it to rise higher, you sell at any point you feel it has risen enough
📌 FUTURES trading: you predict whether a particular coin is going to rise of fall in price, if it goes in opposite direction from your prediction, you lose your money and your coin
Note: In SPOT trading, you can never lose your coin, the worth of your coin can only reduce but your coin remains to rise again in worth when the market goes green.
📌 Spot Trading: you buy any coin of your choice at any given rate, you HODL for it to rise higher, you sell at any point you feel it has risen enough
📌 FUTURES trading: you predict whether a particular coin is going to rise of fall in price, if it goes in opposite direction from your prediction, you lose your money and your coin
Note: In SPOT trading, you can never lose your coin, the worth of your coin can only reduce but your coin remains to rise again in worth when the market goes green.
There is also margin trading i think
There are basically two types of trading on binance generally (SPOT trading and FUTURES trading
📌 Spot Trading: you buy any coin of your choice at any given rate, you HODL for it to rise higher, you sell at any point you feel it has risen enough
📌 FUTURES trading: you predict whether a particular coin is going to rise of fall in price, if it goes in opposite direction from your prediction, you lose your money and your coin
Note: In SPOT trading, you can never lose your coin, the worth of your coin can only reduce but your coin remains to rise again in worth when the market goes green.
Yes, spot trading is the safest trade for us crypto enthusiasts. Not only for beginners, those of us who have been in crypto for a long time are also advised to use spot trading. it is safer to trade futures and will not be harmed by dump market conditions. The key is for those of us who use spot trading, patience is very important for us to have. 📌 Spot Trading: you buy any coin of your choice at any given rate, you HODL for it to rise higher, you sell at any point you feel it has risen enough
📌 FUTURES trading: you predict whether a particular coin is going to rise of fall in price, if it goes in opposite direction from your prediction, you lose your money and your coin
Note: In SPOT trading, you can never lose your coin, the worth of your coin can only reduce but your coin remains to rise again in worth when the market goes green.
There are basically two types of trading on binance generally (SPOT trading and FUTURES trading
📌 Spot Trading: you buy any coin of your choice at any given rate, you HODL for it to rise higher, you sell at any point you feel it has risen enough
📌 FUTURES trading: you predict whether a particular coin is going to rise of fall in price, if it goes in opposite direction from your prediction, you lose your money and your coin
Everyone knows what works best for them, I’ve seen a lot of people who would always tell you that Futures Trading is the best for them, and there are also those who would prefer Spot Trading. So, it is up to you as a trader to know what is right for you, whatever you feel that you will be able to do and do it perfectly, then it is best to just do that. Mostly what I do is Spot Trading,and I hardly do the Futures Trading.📌 Spot Trading: you buy any coin of your choice at any given rate, you HODL for it to rise higher, you sell at any point you feel it has risen enough
📌 FUTURES trading: you predict whether a particular coin is going to rise of fall in price, if it goes in opposite direction from your prediction, you lose your money and your coin
But, it’s good to always try out the different ways of trading, they are quite fun and you will also get to experience them and learn a lot, and as well get to know what is going to fit in for you better. That’s it from me.
I suggest for beginners it is better to take the spot method. This method is much safer for them, because they will not lose a lot of money if they fail. They just need to be more patient when the coins they have haven't gone up yet this is quite a difficult challenge, usually many traders are stuck with their own emotions. For the Future method, this seems more complicated for beginners.
For newbies, spot trading will be a better type of trading as they do not have to worry about the price and as long as they can hold the coin and not sell at a low price, they will have a chance to sell at the next high price.
For all newbies and old trader's Spot trading is one of the best choice and Future trading are always risky for new traders. I agree with you that if someone trade on spot market and if suddenly market is crash then their token value will down but token quantity will same and they can sell their token when again market will recover.
Even though I have been trading crypto for 5 years, but I prefer spot trading, the reason is simple because the risk is smaller than futures trading.
After all, I did have a bad experience when I tried futures trading several times, suffered a considerable loss at that time. So for now I only trade
on the spot market, as long as I choose potential coins, if the price drops, I'm not worried because the potential coins will recover quickly. Although
I admit the income I get from spot trading is not as big as future trading, but if I accumulate it will be big too, then I am quite satisfied with
the spot trading until now.
For newbies, spot trading will be a better type of trading as they do not have to worry about the price and as long as they can hold the coin and not sell at a low price, they will have a chance to sell at the next high price.
For all newbies and old trader's Spot trading is one of the best choice and Future trading are always risky for new traders. I agree with you that if someone trade on spot market and if suddenly market is crash then their token value will down but token quantity will same and they can sell their token when again market will recover.
Actually spot trading means that do trading instantly. While future trading is somewhat prolong. I think that spot market is little bit full of hazards. If you are not familiar with trading and are new in trading then you should give preference to future trading. There is less chance of losing money. people often choose future trading and they think that there will be more profit in the future.
The use of high leverage must also be balanced with clear knowledge, don't just use high leverage but don't know how to do analysis. must be very wise in using leverage. Futures trading is a very dangerous trade when compared to spot trading. High leverage will provide high profits if the analysis is correct, but if it is wrong to predict and is beyond a guess, then big losses will occur. must always be wise in determining leverage.
Leverage is the highest form of trading that has the highest level of risk/reward ratio. You may lose all of your money or you may make more money than you can imagine. This means that you can't make too many mistakes, even the slightest mistake will cause you to lose all of your entry. Margin of error being so small causes everyone to either be very very good at trading if they are making a profit with leverage, or they end up with nothing at all, literally zero money left.I tested way back years ago on bitmex demo and I have realized that I am no way near that level of a trader, I rather keep on being a long term investor and occasional trader. This way I know my level, and I know how good I can become, and I make a profit, sure not good enough like a 100x leverage bull run type of income, but it is an income nevertheless so I am happy with it.
Basics type of trading,scalping trading ,day trading,momentum trading,swing trading and position trading.Most important is can manage and focusing one trading.
These different methods of trading are classified according to time required for closing one trade or by the strategy we are using to predict the direction of market. Honestly not all the traders need to know about all these things but they should adopt one trading method based on their capital amount and level of knowledge in technical analysis.I am just into position trading because I'm not having enough time to watch market all the times. With the help of position trading we can leave off market screens at whenever we need to, which is not at all possible in day trading and especially while scalping.
Basics type of trading,scalping trading ,day trading,momentum trading,swing trading and position trading.Most important is can manage and focusing one trading.This are the methodes can you manage to those activities and operation of trading to take care every tasks and hold the company
There are basically two types of trading on binance generally (SPOT trading and FUTURES trading
📌 Spot Trading: you buy any coin of your choice at any given rate, you HODL for it to rise higher, you sell at any point you feel it has risen enough
📌 FUTURES trading: you predict whether a particular coin is going to rise of fall in price, if it goes in the opposite direction from your prediction, you lose your money, and your coin
Note: In SPOT trading, you can never lose your coin, the worth of your coin can only reduce but your coin remains to rise again in worth when the market goes green.
📌 Spot Trading: you buy any coin of your choice at any given rate, you HODL for it to rise higher, you sell at any point you feel it has risen enough
📌 FUTURES trading: you predict whether a particular coin is going to rise of fall in price, if it goes in the opposite direction from your prediction, you lose your money, and your coin
Note: In SPOT trading, you can never lose your coin, the worth of your coin can only reduce but your coin remains to rise again in worth when the market goes green.
Both have tasks especially for newbies but I find futures riskier especially if you aren't well informed about the capability of your coin. Holding would be better for beginners so they would know how to deal with the changes in the market and they could switch to futures when they completely know how to apply at least the basic strategies of trading.
And how long you have been trading with that insane amount of leverage? Because I can guarantee you that there is no trader in any market that can trade using that kind of leverage for more than a year, you are compounding the volatility of this market 1000x and when we take into account the volatility is already very high in the market then even the most insignificant dip can be more than enough to completely wipe out your account, however if you have to learn the hard way be my guest as it will not take a long time before you destroy your account by using such a high leverage.
The use of high leverage must also be balanced with clear knowledge, don't just use high leverage but don't know how to do analysis. must be very wise in using leverage. Futures trading is a very dangerous trade when compared to spot trading. High leverage will provide high profits if the analysis is correct, but if it is wrong to predict and is beyond a guess, then big losses will occur. must always be wise in determining leverage. leverage trading is something that should be engaged only by the experts, a newbie or even a good trader do not have the necessary tools to be able to manage their leverage correctly
In my opinion almost all kind of active tradings are not suitable for 99% of people (and 1% belongs to pro traders) as those necessary tools and knowledge is not sufficient with them. Against ever-changing market fluctuations, we must need to keep updating our tools and knowledge to stay secured in trading which is not an easier task hence most traders ending in losses.So, which type of trading will be definitely profitable: holding or long term trading.
I regularly suggest everyone to go for long term trading so that we could easily beat market fluctuations.
There could be at least 10 different types of trading methods are available and a trader does not need to master all of them but must adopt a method which is profitable for them; this way long term trading will be profitable for almost all the 100% of traders.
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