How to trade cryptocurrency in the forex market

Choosing a Forex trading mode

Developing a trading system is the thing every self-respecting trader should think about. When developing a trading system, a trader must take into account what trading modes are currently available. The international currency market Forex offers a great variety of modes, but do not assume that you can fit all of the presented modes.

In order to choose the best mode for you, you will need to answer two questions: what kind of nervous system you have and how much money you are willing to invest in trading.

A common mistake that all newbies make is to start trading in a mode that is not suitable for them. The reason might be wrong estimation of personal abilities and nervous system or lack of financial resources that is why the trader cannot afford to trade in an appropriate mode.

Now let us go over trading modes that exist on Forex market up to now.

Intraday trading mode

This trading style is the most popular among beginners. This is due to the fact that this is quite dynamic and interesting in its own way regime that perfectly suits beginners in connection with the fact that it does not require large investments.

Also distinctive features of the intraday mode are the following points:

  • The minimum allowed number of transactions is one transaction during the day;
  • All positions opened during the day must be closed by the end of the trading day or transferred to the next day with protective orders;
  • The trades are short-term and designed for partial profits;
  • The working period is represented by minute charts.
Cryptocurrency trading techniques in the forex market

Trading mode within one week

As a rule, traders that were disappointed with the one-day trading mode start trading in this mode. The weekly mode is completely different from the daily mode. Sometimes it seems that the market is static and there is no dynamics. But this is specific to this trading style and those who understand it can expect to make much more profit than in the intraday trading mode.

The following points are specific to this mode:

  • The duration of the deal is from 1 to 10 days;
  • The trades are calculated on the basis of getting most of the profit;
  • There is approximately one or two trades per week;
  • The investment requirements are much higher than in the 1-day trading mode;
  • Working time frame is represented by multi-hour charts.

Long-term trading mode

This trading regime is suitable for traders who possess such traits as assiduity, calmness and endurance. In addition, this trading style requires considerable investments, so if you have limited money resources it is better not to start trading in this mode.

Distinctive features of the long-term mode:

  • Working time frame is represented by daily and weekly charts;
  • The duration of the transaction may be several months;
  • It requires more significant investments comparing to one-day and weekly trading modes;
  • Being out of the market is allowed during correction period.

Which trading mode you choose for yourself is entirely up to you. Take your time to weigh your financial situation, carefully analyze your personality and nervous system, and then easily choose the one that will eventually begin to bring you steady profits.

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