What kind of trader are you?
altFINS can help active traders regardless of their trading style or preference.
Position trader (aka HODLER)
|Time intervals used||Short Time Intervals (15m)||Intermediate Time Intervals (1h, 4h, 12h, 1d)||Longer Time Intervals (1d, 1wk, 1mo)|
|Trade frequency||Dozens of trades per day||Fewer trades (1-10 a day)||Few trades (~20 a year)|
|Trading strategies||Too many to list
Heavily reliant on technical analysis, and reading of candle patterns
|Tends to look for multi-day chart patterns including moving average crossovers, cup-and-handle patterns, head and shoulders patterns, flags, and triangles. Key reversal candlesticks may be used as well||Trend following (SMA or EMA crossovers)
Often suplemented with fundamental outlook
|Pros||Potential for large profits
Lots of trades allow for quicker learning process if risk is managed (proper position sizing, use of stop loss orders, etc.)
|Requires less time than Day Trading
Maximizes short-term profit potential by capturing most of market swings
Traders can rely entirely on technical analysis, simplifying the trading process
|Lowest time commitment needed.
Works well in markets with sustained trends (equities, commodities) where technical analysis can be sumplemented with fundamental analysis
|Cons||Very time consuming, stressful. Prone to more false signals
Compete with automated algos, high frequency trading (HFT) systems, hedge funds.
|Abrupt market reversals can result in substantial losses
Swing traders often miss longer-term trends in favor of short-term market moves
|Does not work well in volatile markets like cryptocurrencies, where fundamental valuations are not well established|