During periods of high volatility, many traders are confused whether trading approach would work best or, more significantly, which trading style will suit them best. It may take some time to figure out which trading strategy is ideal for you, but during times of uncertainty, scalping and day trading have different advantages.
Best Volatility Index Strategy When trading forex and commodities, the most common trading strategy used by beginning traders is scalping. Many people are drawn to the prospect of making large returns from relatively minor price movements. Scalpers typically focus their trading decisions on lower periods such as 1, 5, or 15 minute charts. They trade in response to strong support/resistance levels, as well as key indications and price activity.
Day trading is another extremely popular trading approach. Scalping and day trading both occur on the same day, but the main difference is that day traders open and close fewer positions each day than scalpers. Day traders typically focus on broader timeframe trends and look for chances on 15-minute, 1-hour, and 4-hour charts. Similar tactics can be applied to both day trading and scalping strategies, but during times of uncertainty, the most important thing is to be market adaptive.
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