Old school trading Vs. Fixed Time Trading: the diversity you need

When it comes to investment, portfolio diversification is the way to go. Simply put, it’s better not to put all your eggs in one basket. In a fast-changing world, Fixed Time Trading is a viable way to diversify your portfolio for faster returns. 

For example, there are more than 9,500 cryptocurrencies in existence and this is just a class of assets you can invest in with fixed time trading. 

Old school trading involves long-term investing in assets such as equities, stocks, precious metals, ETFs, etc for a long period before getting returns on your investment.

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Fixed time trading (FTT) is a type of trading where you predict the outcome of an asset without investing in the asset itself. With FTT, you can make a return on your investment in a short period and move on to invest in other assets. 

Understanding FTT

Fixed time trading is a type of investment where you predict the changes in the prices of assets within a specific timeframe. In fixed-time trading, you can predict whether an asset will increase or decrease in price within a given timeframe.

When the trader correctly predicts the outcome, the trader will get back the initial deposit in addition to a bonus. However, if the prediction is wrong, the trader loses the initial deposit. 

How FTT works

Fixed time trading is the use of analysis and research to predict an asset’s future price. Traders can get a high return for correctly predicting an outcome. However, the return odds vary according to the likelihood of a correct prediction.  

These are the steps involved in fixed-time trading. 

Basic order types in trading
  • Pick a market: FTT allows you to invest in a class of assets that covers cryptos, stocks, commodities, currency pairs, and indices. This range of assets allows you to diversify your portfolio to reduce the potential risk. It is advisable to research any of the available markets and invest in the one you are most comfortable with. 
  • Select the expiry time: As the name implies, FTT involves trading within a specific timeframe. So you get to choose a time frame for your trade which can range from minutes to a few hours. 
  • Choose the investment level: After choosing the time frame for your trade, the next step is to decide how much money you wish to invest in such a trade. Your overall capital should determine the percentage of your investment, and it’s advisable that you don’t risk more than 1% of your overall capital on one trade. 
  • Select the price direction: After setting how much money to place on the trade, you will select whether the asset’s price will increase or decrease. Your prediction will be based on your research and market analysis of the asset. 
  • Confirm trade: After confirming the trade, you have to sit back and watch if your prediction will turn out correct. However, some online trading platforms allow traders to confirm their trades. 

You can either increase your investment, end the trade early, or increase the expiry time. Every alteration you make to the trade will also reflect in real-time. 

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Guiding rules for FTT

FTT is a medium to diversify your portfolio and get a chance to make a profit irrespective of the asset’s change in value. 

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Below are the guiding rules you can follow to explore fixed-time trading opportunities efficiently. 

  • Trading is a competitive activity, and you need to treat it as such to excel at it. 
  • Take advantage of technology: Technology can give you a more efficient and robust trading experience. Stay on top of the latest technological changes in the investment world. 
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  • Carry out daily research: It is advisable to carry out daily research and follow-ups on all the assets you want to trade. Different global economic and political trends can affect the prices of assets, so you should endeavor to stay abreast with the latest developments. 
  • Trade responsibly: In FTT, what differentiates a successful trader from a poor one boils down to capital management. You need to carefully manage your overall capital by ensuring you don’t risk more than you can afford. 
  • Know when to stop trading: To be a successful trader, you need to know when to take a break. Stepping back doesn’t mean giving up. Instead, it gives you the chance to study the assets better and come back stronger. 

Bottom line

The future isn’t promised, and no guarantee holding an investment for a longer period will yield the desired return. Hence, it can also be in your interest to engage in a trading type that offers an instant return.

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