Timing is one of the major trading success determining factors, which is often forgotten by novice traders. Actually, according to market timing, the trading strategies can be broadly classified to day trading, swing trading and position trading.
  1. Day Trading: is the short-term trading strategy which includes using very short time-frames like 1, 5 or 10 minutes charts. Day traders trade for the day. The traders usually take very large position sizes, often 10 to 100 times of normal size. Day traders look for very small spread changes to profit; the large position size help them to make handsome profits on small changes. But day trading requires advanced trading systems, good understanding of technical indicators and precise market timing.
  2. Swing Trading: is another short-term trading strategy which includes using short to moderate time-frame charts. Unlike day traders swing traders do not look for opening and closing trades within a day, swing traders look for maximizing profit in their open position. Trades may last from a few hours to days. Market timing is very crucial in swing trading.
  3. Position Trading: is a long-term trading strategy which includes using longer time-frames, usually daily charts. Position traders mainly rely on fundamental indicators; but also use technical indicators to open and closing trades.
Whatever be the trading strategy a trader follows, he or she should be good in timing trades with changing market conditions. Demo trading on real market conditions can help traders to test their strategies.

This blog is written for Orient Financial Brokers, a UAE based online forex trading and CFD Trading brokerage firm offering free demo trading and a range of account features.