Discover 4 different crypto trading strategies you could use to make money even if you have a full-time job!
Confused about which strategy to trade with? Do you have the busiest job in the world but still want to trade? Whatever the case, you're about to figure out which strategy suits you today.
If you’re not new to crypto-twitter, you might have heard traders echoing “find a strategy and stick to it”.
Perhaps, you’re a newbie and don’t even know what trading strategies exist, or which one suits you in the first place.
You’re looking to get into crypto-trading but you have a full-time job.
Today, we’ll identify 4 major trading strategies you could pick from even if you have a full-time job that takes up your time.
This type requires a long-term approach and can have you holding trades for several weeks or even months. While technical analysis might come in play here, you take a position trade based on fundamental analysis.
For example, through research, you figured out the project is moving to mainnet or announcing a major upgrade, or a strong partnership in no distant future. Technical analysis helps you find a better entry, and then you take a position and wait it out.
The best timeframes to use for position trading are the daily or weekly candles. That way you can filter out the noise on the chart and not bother about short-term price fluctuations.
Position trading is best for you if you have a full-time job because you don’t have to spend so much time on the charts so there is less stress to deal with. This is because your trades are long-term (more like investing).
Also, you can have a better risk-reward ratio (the amount you’re willing to make compared to how much you’re willing to lose). Moving average is important here because position trading is best for trend movements.
Position traders are usually the ones who catch the 50-400% moves that happen over a couple of months. This is because they know the move is backed by strong fundamental analysis and they are willing to shut out the short-term noise.
On the flip side, if you’re a position trader, you may not make profit frequently as your capital is tied to just a few trades per year.
It could still be worth it if you pick the right coins and use huge capital.
I personally love this one. Swing trading is a mid-term kind of strategy where you can hold for a few days or even weeks. The idea is to catch the major swings of that cryptocurrency.
The best time-frames to use for swings are the 1-hr and 4-hr. You’ll need to concentrate on buying support and selling resistance.
You can also buy pullbacks or breakouts (I personally don’t like breakouts because of false ones).
You can be a swing trader even with your full-time job. And you’ll have more trading opportunities than the position trader.
The downside is that you won’t be able to ride bigger trends because you don’t intend to stay too long. You’ll also be leaving your trades overnight just like the position trader.
Day trading is a short-term strategy and best suits Futures traders. Just like in swing trading, you’re trading support and resistance but at a micro-level. Pullbacks and breakouts are also good.
So, the best time-frames are the 5-15 minutes charts. The 1-hr can be very helpful too.
As a day-trader, your goal is to capture the volatility within the day.
The good thing about day trading is that you’re not so concerned with F.A. Through your bias and price action, you decide whether to go long/ short.
As a day-trader, you can sleep well because you don’t leave trades overnight – that’s why it’s called day trading.
Just be ready to deal with the stress as you have to constantly watch the charts to identify good trading opportunities.
If you have a full-time job, day-trading is not for you!
This is similar to day trading but at a much faster pace. It’s a very short-term strategy where you have to hold trades for a few minutes or even seconds.
Most retail traders do not scalp because the transaction fees incurred on exchanges will eat up any profits from such small moves.
However, new exchanges like Digitex Futures aim to solve this with their “industry-first” zero-fee model.
If you want to scalp seconds, be ready to compete with bots – I’m pretty sure they are faster.
While scalping presents numerous opportunities in a day, it is highly stressful as you’d have to stick to your screen.
All these strategies work for different traders and can work for you; depending on your personal goals, the one you understand better, and the time you have at hand. So, you’d have to decide for yourself which strategy suits you or if you can even pick a combination.
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