I have seen FX stock cryptocurrencies and traders in many fields so far. Although I have been trading for 2 years, I have maintained a total plus with the trend follower strategy. I met various people and realized that they had many things in common. I hope I can talk about that today. By the way, this story is not just about FX. It can be said in common in the fields of stocks and virtual currencies, so I think it will be very helpful for beginners.
90% of traders who have been winning for 20 or 30 years were swing trading.
- Day trading will be exhausted and will not last for many years
- Day trading is exhausting because I watch the chart all day long
- Swing trading has time to settle, so you can do other work
- Swing trading has a large price range, so you can make a big profit with one trade.
On the other hand, those who are scalping and day trading have the following in common.
- You can make small money many times, but sometimes you lose a lot.
- Be a full-time trader
- In the case of day trading, it sticks to the market all day long
- The profit of one trade is small
I can’t say anything because of the advantages and disadvantages of the style, but they have the following in common.
- Swing trading for those who want to do other work
- Day trading for those who are good at professional traders
Trend followers account for 90%
Most of the veteran players I have met with more than 10 years of trading history were trend followers.
- If you can grasp a big flow, you can make a lot of money just by leaving it alone
- You can easily win because you can get a large price range with one trade.
On the other hand, those who are fighting in the range market have the following in common.
- You can accumulate a lot of small profits, but if any trend comes out, it will be a total minus
- A trend will appear during the time when the transaction volume increases with a strategy that can only be used in Asian time.
- Always stuck on the chart
The secret of longevity is the combination of swing trading and trend following.
It turns out that traders fighting in a combination of swing trading and trend following have been winning for almost 10 or 20 years. The reasons are the following in common.
- Because of swing trading, there is no need to stare at the chart except for the entry point.
- Swing trading allows you to do other things in your spare time
- Trend-following strategies can take a large price range with one trade
- There is no useless stop-loss because there is no useless entry
On the other hand, it also has the following disadvantages.
- The number of trades is small
- Be sure to get caught up in big economic indicators
- Be sure to get involved in big political decisions
There are many people who are fighting in the range market, day trading people, and scalping people, but from a long life, all of them are exhausted and even if they win, they are sent off. There are many. People who follow trends in swing trading have a lot of free time, so they can play and work, so I got the impression that many people have a fulfilling life.
I can’t say that this should be the case, but if you want to live longer in trading as in your life, it seems better to fight in a style that reduces stress. Of course, each person makes different conclusions depending on their tastes, but trading always has the pain and stress of losing money. I realized that a strategy that can aim for a large profit with a small number of trades has a smaller mental burden. As a result, you can live longer in the trading world and continue to generate total plus.