What is Trading Strategy?

A trading strategy is a set of rule that mostly traders follow to make a profitable trade, Traders set a trading strategy in there daily routine and earn money with minimum risk,

If you wanted to know about What is trading strategy is, and how did traders do trading strategy with minimum risk, they follow some rule.

these are Rules mostly biased on:

1.Market Analysis

In market analysis you need to know about chart, news, coin social media account (or where it post there update and information), price action.

First see is there any big new that can affect the market then chose the coins that look good to trade using chart analysis, then go to the social media account or where that coin is officially register, see is there any resent posts, then check is there any thing related that can effect it’s price(pump or dump).After checking all of this use price action(support, resistance and candlestick pattern, trend and other) this is how you analysis market and ready for the next step.

2.Time Frame:

You need to chose time frame that you wanted to work, time frame is important when you are going to trade, Every time frame have there own trading pattern and trend, and what kind of trade you wanted to do like scalping, day trade, swing trade.

Scalping:

In scalping trader make many trades in very short period of time to make profit,

For example: they only do trade in seconds or in minutes.

Scalping is very risky because you will need time to read the chart finding news and more but in scalping you are doing trade in minutes and seconds, So if you are a beginner don’t use it for now, use scalping when you fully understand charts and other thing.

Day Trade:

In day trade traders close the trade at the end of the day even if it’s in profit or loss, they don’t hold positions overnight.

Swing trade:

In swing trade Traders try to make a profit from short period of time to long period of time, they some time hold there position from few days to few week for better profit or recovering there loss.

2.Indicator:

After analyzing the market, then use indicators to confirm your chart and action(it’s optional if you want to be more safe or you are a beginner)

Use indicator like,

• RSI(relative strength index)
• Average Directional Index (ADX)
• Volume
• On balance volume (OBV)
• Average True Range (ATR)
• Bollinger bands

Use these indicator to confirm.

3.Risk Management:

In risk management you use entry, stop loss, and take profit by using chart analysis, support, resistance bulling and bearish trend and more, you use these method to minimize your trade risk. Risk management is very important if you are a beginner and don’t know about market. Even big traders use stop loss and take profit for safe trades, Risk management safe trades from big loss if you use is wisely.

Your Goal:

What do you want to trade short term trade or long term trade.

If you are a beginner and want to trade then slowly start with swing trade then day trade then move to scalping, don’t start with big capital start with small capital.

These are the rules that mostly traders use but remember rules are almost same but the effort you put in these will be different, so work hard when you start, spent as much time as possible in chart analysis and news, you will be better with time no one is perfect from the start.

What is The Benefit Of Using Trading Strategy?

There are many benefit of using trading strategy,

Entry trade	It tell you when to enter market, like is it good time to enter the market or bad time trade.
Exit trade	It tell you when to exit the market, if you are using trading strategy correctly it tell you what is the best time for exit the market.
Risk	Trading strategy tell you how much risky the trade is for you is it safe to trade and how much capital you need to put
tools	With trading strategy you can use chart, indicator, pattern, trend with more accurately and safely.
emotional decision	If you use Trading strategy as your routine you will know about market and it’s behavior more accurately and you decision will be not emotionally but technically.

these are some benefit if you use trading strategy properly, Don’t loss your focus and make emotionally decision, there will be time come when you are in loss don’t be sad and don’t make your decision emotionally, calmly decide what to do depending on situation, you will get better result.

Why is a Trading Strategy Important?

Trading Strategy is very important, without trading strategy, trading only become a guessing and gambling game. Trading strategy help you trade accurately and safely, it help trader so make decision calmly, If you use trading strategy every day with consistency and same logic you will be master in it,

As the saying goes, you cannot master one skill every day but you can master a skill that you practice every day. So use trading strategy, this is important.

this all for now if you want to know what is you need to do before starting trading then also click here

And if you wanted to know about bainace security feature then click here

or if you wanted to know about Risk management click here

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