In summary, trading styles define broad groups of market participants, while strategies are specific to each trader. That’s especially true once you add human psychology as a variable. The endless number of indicators and methods means that no two traders are exactly alike.
Another trader of the same style may use a 5 and 10 simple moving average with a relative strength index.īoth are considered day traders, but their strategies are different. It’s up to each trader to make the style his or her own.įor instance, one day trader may use the 3 and 8 exponential moving averages combined with slow stochastics. In other words, there are many different ways to day trade just as there are many ways to swing trade. Within each of these, there are hundreds if not thousands of strategies.
Scalping (often a subset of day trading).Here are a few of the most popular styles: Before we move on, it’s important to know the difference between styles and strategies.Īs I mentioned above, there are far fewer trading styles than there are strategies.
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