Trading styles are exclusive to an investor, depending on their personality and psychology. If a trader is impatient, they would prefer getting in and out of trades quickly and will be called a scalper. On the other hand, swingers are a patient bunch of investors who like to stay in their positions preferable for a longer term. They may hold their executions for days, weeks, or months. Day traders are intermediate between swing and scalpers who keep their trade open for a single day.
Different sets of financial instruments may demand that you shift your trading styles. An asset that is highly volatile or has a huge spread will be complex to trade if you are a scalper. Similarly, those currency pairs or stocks that trade in a short range are not preferable for swing trading. Our article will discuss how you can change your game plans with ease and employ the same strategies on different time frames as a trader.
Scalping to swing trading
A technical trader who uses lower time frames can find it hard to sit on the screen for long durations due to his demanding schedule. After backtesting a swing trading strategy, the trader wants to switch over instantly. For the process to proceed smoothly, he has to take the following steps:
- The first point is to withdraw funds from the brokerage and choose an exchange that offers no swaps as you’d likely be holding trades for a more extended period. Scalpers tend to use brokers that are quick in performing trade executions and offer tight spreads, something that doesn’t matter in swing trading.
- While choosing a swing trading strategy, make sure that it matches your preliminary game plan to a certain extent, as the process will become easier this way. For example, a trader who uses moving averages and engulfing patterns as confluence on one-minute charts may also employ it on H4 or daily.
- A general piece of advice that stands to assist in shifting to any alternative style is to surround yourself with traders who share this new style. In this instance, finding profitable swing traders will be an advantage.
- On the psychological side, you have to be patient enough for the process and your trades to work out. Gains will be available, but after a certain period and you won’t see success immediately.
If you are a swing trader looking to adapt scalping, reverse the points mentioned above.
Scalping to day trading
Scalpers and day traders are close relatives, and therefore if you are looking to transit in between them, it will be super easy. Take notes of the following points:
- You may not feel the need to change your broker as both types of styles involve closing positions on the same day, and low spreads are always welcomed.
- Day trading might be less stressful than scalping as it still doesn’t require you to place hundreds of short trades each day. However, it still carries risk, and therefore maintaining your positions should have the same type of approach as scalping.
- As a day trader, stick to time frames ranging from M30 to H4. Anything below that will create a lot of noise in your charts.
- It is possible to adopt this style by using copy trading services that are not possible with scalping as the speed of execution is fast, and the entry/exit levels are close to each other.
Day to swing trading
The art of day trading can be switched over to swing trading with ease by holding your positions for over a day. Similar to scalping, you have to be wary of swaps. Use the following points to help you even further in your mission:
- You can use fundamentals significantly to your advantage in swing trading. For best setups with high probability, utilize the news as catalysts and technical charts to enter the trade.
- Do not look at your trades more often as you did with day trading. Only do so when it is necessary, or an essential economic event is around the corner.
- The stop losses and take profit pips will become more widespread as bigger charts contain more information within a small space.
- Do not expect noise from the charts. Daily time frames are much more cleaner, so trade directly on what you see.
Can you use multiple trading styles at once?
The possibility to use multiple trading styles at an instant is possible and should only be done if you are a high-level trader. As a beginner or an amateur, your primary focus is to develop sound risk management and consistency. Using this approach on different instruments is better as, on the same asset, you may get interfering signals. E.g., you can choose to day trade currencies, swing trade stocks, and scalp futures as per your choice.
End of the line
Trading is an extensive process that demands lots of effort from the trader’s end, both on the psychological and capital end. Therefore only adapt to what you know in the initial stages and refrain from activities that may jeopardize your gains. If it interests using more risk on a strategy that you understand to realize more profits is better than trying to earn from multiple ways that don’t work. On the bright side, follow the key points for the transition, and you’ll find out the whole task is not that tedious.