There are so many trading strategies that it can be hard to decide which one you are going to employ after all. And, if you are a beginner it is hard to look for the appropriate information.
But do not worry, I got you covered. Here is the short and understandable description of the most popular and widely-spread trading strategies.
1. Day trading.
The most popular and the mist used trading strategy is day trading. It is often used to simply describe the process of trading. Judging from the name it is clear that day trading includes trading during the day and not holding any of the positions open through the night.
It is a strategy implemented by professional traders, although it is also suitable for those, who are newly arrived to the field.
2. Position trading.
A lot of traders think of the position trading as a form of buy-and-hold trading. But, if done right and professions it can actually be a form of active trading. it takes a professional to make the change, but it is possible.
Position trading involves knowing how to read different market indicators and knowing how to determine various trends and whether they are going to go on or reverse right here or a bit later. With this trading strategy positions can be opened for several weeks or even longer, depending on a performance.
3. Swing trading.
Swing trading requires a sharp eye for a breaking trend. Because swing traders can usually be spotted circling around a broken trend.
It is a rule – at the end of the trend price usually becomes volatile and that is exactly when swing traders prefer to buy and hold for about a day or a bit more. After that a new price has certainly established itself and it is a perfect time to decide what to do next.
Swing trader need a market that moves in direction or another in order to make a move.
4. Scalping.
Well, scalping is one of the quickest ways to execute trades. Scalp traders usually speculate on price gaps caused by different spreads and order flows. Scalping usually means to buy at the bid price and sell at the ask price. Profit comes from the difference between the two points.
Scalping is a type of short trading and does not involve exploiting of large movement or movements of the big volumes. Best used in the highly liquid markets,