Trading Strategies

There are various common trading strategies that you will come across when trading on financial markets. It’s also possible that you won’t achieve the same results utilizing one technique as someone else would.

News

A news trading strategy involves trading based on news and market expectations, both before and following news releases. Trading on news announcements requires a skilled mind-set as news travels very quickly on digital media.

Swing

The term ‘swing trading’ refers to trading both sides on the movements of any financial market. Swing traders aim to ‘buy’ a security when they suspect that the market will rise. Otherwise, they can ‘sell’ an asset when they suspect that the price will fall. 

End-of-day

The end-of-day trading strategy involves trading near the close of markets. End-of-day traders become active when it becomes clear that the price is going to ‘settle’ or close.

Trend

This strategy describes when a trader only enters trades in the direction of the pre-determined trend.
‘The trend is your friend’
The above is a famous trading motto and one of the most accurate in the markets.

Day

Day trading or intra-day trading is suitable for traders that would like to actively trade in the daytime, generally as a full time profession. Day traders take advantage of price fluctuations in-between the market open and close hours. 

Scalping

Traders who use a scalping strategy place very short-term trades to get a small profit from each trade in the hope that all the small profits accumulate. As a scalper, one must have a disciplined exit strategy since a large loss can eliminate many other profits that have accumulated slowly and steadily.

Simple Steps to Create a Trading Plan

wpChatIcon