what is the best trading strategy?
scalp or long trades
Types of trading are as follows:
Scalping, Day Trading, Swing Trading and Position Trading; each in order from shorter to longer time frames.
There are concepts which produce higher accuracy and result in trading models which are high probability.
Typically the markets are fractal in nature, meaning a trading model which works on a ‘Daily’ timeframe can also be applied on a ‘Hourly’ timeframe.
I would recommend looking at verified successful traders such as Larry Williams, and see what concepts they apply to their trading.
No need to reinvent the wheel, and look at the hints left behind by successful traders (not the online scammers).
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All strategies fall into two types - follow the trend, or enter a reversal against the trend. These can be summed up as buy because price has been rising, or buy because price has been falling.
Following the trend gives you a higher number of trade opportunities, a high probability of getting the direction right, low risk of loss, opportunities to increase your position, but low probability of dramatic gains. Trend-following is easier for a new trader.
Taking reversal trades gives a lower number of trade opportunities, a low probability of getting the timing of the direction change right, little chance to enlarge the position, but a shorter time exposed to the market and a better possibility of quick dramatic gains. Reversal trading demands advanced TA skills.
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thank you sir