{"id":14251,"date":"2021-12-13T11:13:27","date_gmt":"2021-12-13T05:43:27","guid":{"rendered":"https:\/\/zebpay.com\/?p=14251"},"modified":"2021-12-13T11:13:27","modified_gmt":"2021-12-13T05:43:27","slug":"trading-strategies-simplified","status":"publish","type":"post","link":"https:\/\/zebpay.com\/in\/blog\/trading-strategies-simplified","title":{"rendered":"Trading Strategies Simplified"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_66_1 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/zebpay.com\/in\/blog\/trading-strategies-simplified\/#So_how_do_you_start_trading\" title=\"So how do you start trading?\">So how do you start trading?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/zebpay.com\/in\/blog\/trading-strategies-simplified\/#Range_Trading\" title=\"Range Trading\">Range Trading<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/zebpay.com\/in\/blog\/trading-strategies-simplified\/#Scalping\" title=\"Scalping\">Scalping<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/zebpay.com\/in\/blog\/trading-strategies-simplified\/#Swing_Trading\" title=\"Swing Trading\">Swing Trading<\/a><\/li><\/ul><\/nav><\/div>\n\n<p>You go to a shop. The shopkeeper hands you some chocolate in exchange for money. This is a trade. Later on, you give those chocolates to your friend in exchange for copying her homework. This is also a trade. By definition, trading is the exchange of assets. It can be done with a medium of exchange like money in the case of the shopkeeper, or it can be done through the exchange of goods and services like in the case of the homework. Cryptocurrency trading works in a similar fashion. You can use <a href=\"https:\/\/www.investopedia.com\/terms\/f\/fiatmoney.asp#:~:text=Key%20Takeaways-,Fiat%20money%20is%20a%20government%2Dissued%20currency%20that%20is%20not,U.S.%20dollar%2C%20are%20fiat%20currencies.\" target=\"_blank\" rel=\"noreferrer noopener\">fiat currency<\/a> (regular money like dollars and rupees) to buy and sell crypto or you can exchange one cryptocurrency with another.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-so-how-do-you-start-trading\"><span class=\"ez-toc-section\" id=\"So_how_do_you_start_trading\"><\/span>So how do you start trading?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Since there are a million and one ways to go about trading, the best way to start is to create a trading strategy. A trading strategy is a framework that will guide you in your trading activities. It generally lays out the following details:<\/p>\n\n\n\n<ul><li>What you are trading<\/li><li>How you are trading it<\/li><li>The entry and exit points of the trade<\/li><\/ul>\n\n\n\n<p>Sounds simple enough, right? You might be thinking that these decisions can be made on the fly, but trust us when we say a strategy will make your life much easier. Because crypto markets have a tendency to suddenly change, a strategy will help you be prepared for any scenario. With a good set of rules and regulations, you will never find yourself having to make an impulsive decision. A few basic strategies to get you started are range trading, scalping and swing trading. Let\u2019s walk you through each of them.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-range-trading\"><span class=\"ez-toc-section\" id=\"Range_Trading\"><\/span>Range Trading<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Range trading refers to trading when an asset\u2019s price fluctuates between a specific range. Think of it as a ball that is continuously bouncing between the ceiling and floor. The ceiling indicates the asset\u2019s highest price (known as the resistant band) and the floor stands for the lowest price (known as the support band). It is crucial that these two levels remain consistent for a certain period of time, creating what is known as a sideways market. A good way to gauge a situation like this is to wait until the price has bounced between the resistant and support bands at least twice. This way you can make sure it isn\u2019t just a temporary phase.<\/p>\n\n\n\n<p>Once you have identified the range, you can start trading by taking advantage of the predictability of the range. So you buy when the price is at the support price and sell when it is at the resistant price. Of course, the market isn\u2019t going to stay at this stage forever. So it\u2019s important to keep an eye out for bigger changes that might cause the asset to \u2018breakout\u2019 from this range. Accordingly, you can set your exit point for the strategy.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-scalping\"><span class=\"ez-toc-section\" id=\"Scalping\"><\/span>Scalping<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Those looking for a slightly more adventurous kind of trading can opt for scalping \u2014 one of the fastest moving strategies. Scalp traders usually try and generate profit from small price movements instead of larger trends. They open and close positions within just a few seconds and the small profits eventually add up to a substantial amount. Experienced traders often stake larger amount of funds while scalping. This way, even a small percentage of returns can lead to a higher profit.<\/p>\n\n\n\n<p>To find the best conditions for scalping, look for assets which show high volatility in a short amount of time as well as high liquidity. While the constantly shifting crypto market is ideal for such a strategy, the high reward comes along with a high risk. However, with a good understanding of the market and some quick decision making, you can keep yourself well protected.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-swing-trading\"><span class=\"ez-toc-section\" id=\"Swing_Trading\"><\/span>Swing Trading<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Swing trading is a strategy that focuses on riding waves of large price movements that occur over a longer period of time \u2014 from a few days to several weeks. As opposed to range trading, your focus should be on trending markets. For example, you choose an undervalued asset that is predicted to rise in value. You make the purchase and a few weeks later sell it when the price has risen high enough.&nbsp;&nbsp;<\/p>\n\n\n\n<p>Swing trading is an ideal strategy for beginners as it takes place over a relatively longer period of time and doesn\u2019t require you to make decisions on your feet. It can also be an easy way to observe and learn more about crypto market trends.<\/p>\n\n\n\n<p>While strategies have mostly to do with your financial decisions, there\u2019s no reason you can\u2019t use them to find a sense of balance in other parts of your life. Some people assign specific days for trading while others try and close everything before the weekend. This way you avoid any unnecessary stress from constantly worrying about your crypto. A steady mind makes good decisions, so why not personalize your strategy and make your life that much easier?<\/p>\n\n\n\n<p>Now that you\u2019re familiar with a few trading strategies, it\u2019s time to choose one. You can select one (or more) based on a few things like how much money you can expend, how much time you can invest, and what your cryptocurrency goals are. And with <a href=\"https:\/\/zebpay.com\/\" target=\"_blank\" rel=\"noreferrer noopener\">ZebPay<\/a> right at your fingertips, you don\u2019t need anything more to get started.<\/p>\n\n\n\n<hr class=\"wp-block-separator is-style-dots\"\/>\n","protected":false},"excerpt":{"rendered":"<p>You go to a shop. The shopkeeper hands you some chocolate in exchange for money. This is a trade. Later on, you give those chocolates to your friend in exchange for copying her homework. This is also a trade. By definition, trading is the exchange of assets. It can be done with a medium of [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":14252,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"_ayudawp_aiss_exclude":false,"footnotes":""},"categories":[14],"tags":[],"acf":[],"_links":{"self":[{"href":"https:\/\/zebpay.com\/in\/wp-json\/wp\/v2\/posts\/14251"}],"collection":[{"href":"https:\/\/zebpay.com\/in\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/zebpay.com\/in\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/zebpay.com\/in\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/zebpay.com\/in\/wp-json\/wp\/v2\/comments?post=14251"}],"version-history":[{"count":0,"href":"https:\/\/zebpay.com\/in\/wp-json\/wp\/v2\/posts\/14251\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/zebpay.com\/in\/wp-json\/wp\/v2\/media\/14252"}],"wp:attachment":[{"href":"https:\/\/zebpay.com\/in\/wp-json\/wp\/v2\/media?parent=14251"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/zebpay.com\/in\/wp-json\/wp\/v2\/categories?post=14251"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/zebpay.com\/in\/wp-json\/wp\/v2\/tags?post=14251"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}