Basic Strategies

When trading in financial markets, you will face many popular trading styles. Keep in mind that if a style brings good results for a trader, it does not mean that the same style results successfully for you also. In a few words, it is up to you and your circumstances which strategy to choose to trade with. Some factors are personality type, capital available, time available, knowledge and experience.

One of the most well known trading styles is trading on news announcements. It requires a skilled mind-set to take advantage of the news in time, because they happen suddenly and move very quickly on digital media. Traders need to assess the news immediately after it’s released and make a fast decision on the trading asset.

Swing & End-of-day trading strategy

The term ‘swing’, means that the trader can trade in both directions the market could go. Swings traders tend to buy an asset when it is expected that the price will go up. And, they will sell the asset if they think that the asset price will fall. Swing trading is a pure technical approach to financial market analysis, performed by charts analysis, individual movements that show a bigger picture variation.

Successful swing trading is based on how good the interpretation of the length and how long the swing took. This defines also the support and resistance levels. The swing traders will need to identify trends where the markets are raising or decreasing within the swing while observing trades.

The end-of-day trading strategy means that the traders open their positions when the market is about to close. End-of-day traders invest their capital when they are sure that the price settles down on a certain value. This strategy requires the studying of the asset price of the days before.

Loading RSS Feed

Day & Trend Trading Strategy

Day trading or intraday as it is broadly known is suitable for traders who want to be trading all the day long, and usually they are full time professional traders. Day traders make the most out of the price fluctuations of the assets during the day long. Day traders keep open multiple trades during the days, but do not keep them overnight, because of the market volatility and overnight fees.

Trend trading consists of identifying a trend on the historical data of the assets, and checking why and when this trend (pattern) repeats itself. It is said that ‘trend is trader’s best friend’. Trend traders have no clear view of where the market might go, in which direction. Success in trading means having the right system, which determines and follows the trends. It is very important to stay alert, because the trend can quickly change.