Trading strategies every trader should be familiar with
When trading in the financial markets, you will come across a variety of well-known trading strategies. Additionally, you may discover that your success with one method does not always reflect that with another.
- End-of-day trading strategy
- News trading strategy
- Swing trading strategy
- Trend trading strategy
- Day trading strategy
End-of-day
trading strategy
Trading towards the end of the day is a technique that includes trading at market closing. End-of-day traders enter the market when it becomes evident that the price will settle or close.
This method necessitates a comparison of price activity to the previous day's price fluctuations.
- It is appropriate for the majority of traders
- Time commitment is reduced
Swing trading strategy
Swing trading is a concept that refers to trading both sides of any financial market's movement. Swing traders seek to 'purchase' an asset when they believe the market is about to rise.
Alternatively, they can sell an asset if they believe the price will fall.
- It’s feasible as a hobby
- Many trade opportunities
Swing trading strategy
Swing trading is a concept that refers to trading both sides of any financial market's movement. Swing traders seek to 'purchase' an asset when they believe the market is about to rise.
Alternatively, they can sell an asset if they believe the price will fall.
- It’s feasible as a hobby
- Many trade opportunities
Trend trading strategy
Trading strategy based on trends This strategy is used when a trader employs technical analysis to establish a trend and then trades exclusively in the direction of the trend.
Day trading strategy
Day trading, or intraday trading, is appropriate for traders who want to trade actively throughout the day, often as a full-time vocation.
Day traders profit from price changes that occur between market open and closure hours.
- Limited intra-day risk
- Time flexible trading