Overview — Style Fit > Holy Grail

No style is universally superior. Success comes from aligning a proven edge with your schedule and psychology. Start with the style whose rhythm you can sustain every week.

Quick Comparison

Scalping — Liquidity & Precision

Scalping aims to capture small moves during peak liquidity (London open, London–NY overlap). Execution quality and spreads matter enormously.

Tools & Conditions

• Pairs: EUR/USD, GBP/USD, USD/JPY (tight spreads).
• Platforms: depth-of-market (if available), one‑click trading, hotkeys.
• Indicators: 20/50 EMA, VWAP (if offered), session highs/lows.

Playbook — Breakout Pullback (BOPB)

1. Mark session high/low; wait for break with volume/impulse.
2. Enter on first micro pullback to 20 EMA or broken level.
3. SL 3–6 pips beyond invalidation; TP 1.5–2.5R; no averaging.

Day Trading — Structure & Sessions

Day traders hold for hours and close before end of day to avoid overnight risk. Focus on London morning or NY session with a prepared plan.

Tools & Prep

• HTF map on H4/D1; intraday levels from M30/M15.
• Economic calendar: avoid trades within 15–30 minutes of high‑impact news unless news‑focused.
• Indicators: 20/50 EMA, RSI 14 for momentum filter, ATR for stops.

Playbook — Trend Pullback (TPB)

1. Bias: above 200 SMA (uptrend). Wait for pullback to 20–50 EMA zone.
2. Trigger: bullish engulfing or break of a minor counter‑trend line.
3. Risk: SL below swing/EMA; target 2R at prior high; optional runner to 3R on trend day.

Swing Trading — Ride the Wave

Swing trading targets multi‑day moves aligned with macro trends and HTF structure. Entries often occur on H4/H1 after D1 setups form.

Tools & Prep

• Weekly/Daily levels, channels, Fibonacci retracements (38.2%/50%/61.8%).
• Fundamentals: rate expectations, CPI/NFP calendar for hold decisions.
• Risk: smaller size per trade; consider swap costs and weekend risk.

Playbook — Break‑and‑Retest

1. Price breaks D1 resistance; wait for H4 retest as support.
2. Trigger: H1 bullish reversal at retest with RSI > 45.
3. Risk: SL below retest low; scale out at 2R, trail remainder to channel top or 1.272 extension.

Risk & Position Sizing by Style

• Scalping: Risk ≤ 0.25–0.5% per trade due to high frequency and slippage risk.
• Day Trading: Risk ≤ 0.5–1.0% per trade; limit 1–3 trades/day.
• Swing: Risk ≤ 1.0–2.0% per trade; expect fewer but larger moves.

Worked Examples — Digit‑by‑Digit

Example 1 — Scalping size
Account $10,000; risk 0.5% → $50 per trade
Stop 5 pips; pip value (1 lot) ≈ $10 → $10 × 5 = $50 risk per 1 lot
Position size = $50 / $50 = 1.00 lot
Target 2R → 10 pips → $100

Example 2 — Day trade size
Account $10,000; risk 1% → $100
Stop 20 pips; $10/pip per lot → $200 risk per 1 lot
Position size = $100 / $200 = 0.50 lots
Target 2R → 40 pips → $200

Example 3 — Swing trade size
Account $10,000; risk 1% → $100
Stop 80 pips; $10/pip per lot → $800 risk per 1 lot
Position size = $100 / $800 = 0.125 lots
Targets 3R → 240 pips → $300

Common Mistakes

• Style mismatch: scalping without top‑tier liquidity or fast execution.
• Ignoring calendar: intraday trading through NFP/CPI without a plan.
• Over‑trading: too many low‑quality setups to hit a quota.
• No journal: you can’t improve what you don’t measure.

Checklists by Style