There are a few different methods, and first, we have the fundamental analysis, this is a method that some people use and are based on a fundamental impact on the market such as news, performance reports and numbers. This is completely irrelevant to me because I am interested in technical analysis, which basically means reading the history of the market, interesting price levels and different patterns. This is also the most common method and, according to me, the most effective.

What do you want to get out of your trading?

This is a really important question because it determines what approach you should have on the market. What style you should base your strategy on that suits you best. Do you want to act in the short term or the long term? Do you want to be a passive or an active trader?

My own vision and also one of the big reasons why I love this profession is freedom, to be free. Neither being bound to time or place but at the same time have the ability to support me and my family. This, of course, requires a certain amount of money and on this basis, I can now develop my strategy.

An active trader or a day trader usually has a screen time of more than 8 hours a day, looking at charts all day and performs 10+ trades per day, this is often fast trades, from a couple minutes to a couple hours. But if you take me for an example, I would call myself a passive trader or a swing trader, the above scenario is not for me and this is because I want less screen time and more freedom. It does not mean less work, but I have another approach on the market, the technical part is still the same, we look at the same charts, the same formations and work the same way but often in higher timeframes. But the average holding time of my trades is 2-3 days, but then my target is often a few hundred pips instead of 10-40 pips that a day trader or scalper is targeting. Being a swing trader is often less stressful and you don’t have to monitor your trades every minute of the trade, you can set notifications at important levels and do other things during the day.

The opportunities in the market are endless and you can achieve your goals no matter what style you use, but if you want freedom, an active style is not for you. Remember, the vision is what drives us every day, what makes us go up every morning and put down the work needed to reach our goals instead of being satisfied with what we have.

This is the second part of many educational blog posts, if you liked it please upvote it and give me a follow. Do you have any questions? Feel free to drop a comment and I will answer them.