Scalper intraday and long term – Basic differences
Trading strategies are of different types. Some are trading for keeping money invested in companies for a long to very long term. The others want to generate a regular source of income daily. The first type of traders is called long term traders, and the second type, where the traders are booking small profits generated from the Forex prices’ fluctuations of the day, is called scalper intraday traders. Let’s understand how these differ on other grounds too.
- Scalper intraday
A scalper intraday accumulates profits by booking small amounts throughout the single trading day. Since they are banking upon the fluctuations in the market and corresponding changes in the Forex price, they need to be very agile, attentive, and disciplined in their trading strategy. Some of the necessities to become a successful scalper trader booking profits intraday are:
- A live feed: Every minute is crucial in intraday trading. The traders need to concentrate on the prices of the day’s trending shares to pick an entry and exit strategy. They cannot book profits if a live system is not giving them minute-by-minute updates.
- Ability to place multiple trades: The idea is to be on the plus side of money-making at the end of the day. Not all trades result in profit. So, having multiple trades can allow the trader to cover the losses made from other trades’ profits.
- Direct-access broker: Your broker should provide you the right conditions for the immediate settling of trades. If your broker is more on the research side, then you have to look for the one who can enable quicker execution of orders for you.
- A strict exit strategy: The scalper intraday has to fix his exit points and stick to them no matter what happens to the trade at the end of the day. The moment the profitable price is achieved, it is time to collect funds and leave.
- Long term
As the name suggests, long-term trading is the trading style where the trades are held for quite a considerable time. The time frame can extend up to years. In long term trade, the focus is mostly on booking the profit when the correct price level has been achieved. The traders are not in a hurry to take out their money from the Forex platform anytime sooner. Some of the critical requirements to win big from long term trading are:
- Strong research tools: The long-term trading is all about doing good research and employing the understanding of markets to your benefits.
- Open-mindedness: Going by the rule book always doesn’t help. The long-term traders should have a positive attitude towards small-sized companies, too, as these may turn big in the coming times.
- Sharp eye on market conditions: Just because it is a long-term trade, you cannot ignore keeping an eye completely. Some share may go down to zero price with time; it is not an undeniable fact.
Whatever strategy you want to adopt, be sure of what you want from the trading activity. Also, play your game as per your risk appetite and experience, while giving some leverage to the expert advice.