Within traditional stock markets Day Trading relates to trading within the specific hours that markets open and close. Of course crypto markets never close, they trade 24/7/365, so the concept of Day Trading really means someone who is actively trading the markets on a day-to-day basis, opening short term positions, based on Technical Analysis of price movement. The aim is to capitalise on small swings in price that don’t reflect fundamental changes in the underlying market, rather movement within trends.
Swing Trading requires a good grasp of technical indicators, very clear trading plans and the discipline to wait for the right opportunities, rather than simply trading what is in front of you. Swing doesn’t require a conviction in crypto’s fundamental value, rather a belief in the accuracy of technical indicators.
Pros
- Doesn’t require continual commitment so can suit hobby traders
- Focuses on small gains/loses so you are less likely to get rekt
- Doesn’t require understanding of how crypto works
Cons
- Requires a grasp of technical indicators and how to recognise them
- Needs a lot of discipline
- Unlikely to provide the same kind of returns as longterm hodling
Having €1,000 worth of Bitcoin in your Hard Wallet doesn’t really need a spreadsheet, but as the frequency of your trading increases and the time which your trades are open for decreases, you need to put a lot more effort into planning and documenting what you do.
This might start with a spreadsheet for Dollar Cost Averaging ( as advised in a separate article) but as your trading becomes more sophisticated should eventually turn into a Trading Journal.
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