There are two main types of analysis:
— Fundamental analysis Close investigation of the economical situation is the cornerstone of fundamental analysis. — Technical analysis This one is about following the trends and keeping an eye on assets, indicators, patterns, etc.Types of trading:
#1. Scalping The trader opens a position, waits for minimum profit within a short period of time—which can be between one and five minutes—and closes it right away. If you choose this trading approach, you should be ready for extreme mental pressure and realize that you won’t be able to earn a lot of money at the beginning. #2. Medium-term trading This trading approach implies the use of hourly, 4-hour, and daily time frames. Professionals recommend those who are only getting started opt for this trading style. Medium-term trading enables you to learn to spot market moves, open and close your trades, get a better grip on your emotions as well as figure out the wave nature of the exchange rate changes. #3. Long-term trading Long-term trading implies the use of time frames that are longer than one day—typically one week. Monthly or yearly time frames aren’t popular among traders as they aren’t willing to wait that long to reap profits. #4. Technical trading With this type of trading, we utilize technical analysis. High time frames—4-hour and higher ones—are rarely used in this case. #5. Fundamental trading Principles of fundamental analysis are at the core of this trading approach. Lower time frames can only be used when trading the news. #6. Swing trading First and foremost, you have to identify the trend. If the exchange rate is rising, you should go long. If it’s dropping, you can only go short, i.e. sell. #7. Momentum trading With momentum trading, we can use both scalping and medium-term or long-term time frames. The statistic suggests that 8 out of 10 traders open their trades being guided by emotions and gut feeling. This works in favor of the market players as they are able to make money off of the newbies’ failures and mistakes. However, knowing various trading styles, you can pick the one that works best for you and you’ll have every chance to succeed!Trading starts long before the first order: money has to reach the platform and come back. A digital wallet with euro and crypto in one place shortens that route — topping up, withdrawing and converting happen without waiting for interbank transfers. SharPay opens one in a few minutes.
What trading costs before you are right about anything
Beginners usually focus on direction. The costs decide far more, and they apply whether the trade works or not.
The spread. The gap between the buy price and the sell price. You pay it on entry, which means a position starts slightly negative and has to recover that gap before it shows a profit.
Commission. Charged per trade by some brokers, built into a wider spread by others. Neither is automatically cheaper — compare the total on a realistic trade size, not the headline.
Overnight financing. Positions held past the daily cut-off are charged or credited for financing. Over weeks this can exceed everything else combined, and it rarely appears in the examples used to sell a platform.
The rules that apply to retail clients in Europe
Retail traders in the EU are protected by limits that professional clients do not get, and they are worth knowing before comparing offers.
- Leverage is capped by instrument. Major currency pairs sit at the top of the range, individual shares and cryptocurrencies at the bottom. A broker offering far higher leverage to EU retail clients is telling you something about where it is regulated.
- Negative balance protection means you cannot lose more than the funds in your account.
- Risk disclosure is mandatory: brokers must publish the share of retail accounts that lose money. Read that figure. It is usually between two thirds and four fifths.
Before funding an account, check the licence in the regulator’s public register, using the legal entity name from the website footer rather than the brand.