Within the idap.io community, we received positive feedback on our last post, Types of orders and how to use them in crypto trading and thus we want put out more introductory articles touching upon many topics relevant to beginners in crypto trading.

In this post, we will provide a gentle foray into Trading Strategies and how newcomers can benefit from choosing the right one. Our Desktop Trading Interface has been designed to encourage and pursue a strategic style of trading, and thus we hope to inspire a new generation of retail investors who learn and trade with our platform when its comes to crypto trading.

To begin at the beginning, a trading strategy comprises objective rules set to dictate your entry into a trade and the exit from said trade. Simply put, with a trading strategy, you minimize the guesswork involved in selling and buying your coin or its derivative instrument by planning ahead and sticking to this plan. A trading strategy specifies when you enter a particular trade, what factors trigger this entry, what conditions need to occur for you to exit this trade, how funds are managed to achieve the trade, the kind of time frame you will follow, what relevant order types will be involved and so forth.

As stressed many a times, trading is an art form and like with any art form, there is a requirement for individuality; there is no one-rule-for-all type of strategy. Each new trader needs to identify what kind of trading suits them most and then develop a strategy in line with this style. To give an overview, there are several styles of traders present in the market, though it is noteworthy that this is in no way a hard and fast categorization: