The 4 most used strategies in trading

What is trading? Our tips for getting started with the 4 most used strategies

Trading is the buying and selling of financial assets with the aim of making a profit.

Trading has become very popular in recent years, but not everyone knows the concept or knows how to implement it.

If you are fascinated by this form of investing, follow the advice below before taking the plunge. You will be able to avoid the worst and take advantage of all the good deals you can get with maximum security.

Find out before you start

Before starting real money trading it is best to start with a demo account to gain experience and anticipate / avoid mistakes.

The best thing to do is to watch how-to videos, read articles, or ask your relatives who trade, they will be able to help you get started.

Here are the 4 most used trading strategies:

Before opening a trading account and starting to learn how to trade, it is important to decide which strategy you want to use on your online brokerage platform.

Depending on your trading goals, it is important to choose the one that best represents what you want to do with your money. There are five trading strategies, each with different styles that suit different risk profiles, trading practices, and even personalities.

1 / Scalping strategy

The scalping strategy is the most aggressive trading method. Here traders simply hold their open positions for seconds to minutes and try to make maximum profit which is minimal during the busiest hours of the day.

Therefore, this trading strategy requires time, vigilance and skill. The latter is not ideal for beginners who are new to trading.

2 trading days

This trading strategy consists of taking a position on a financial asset by selecting the beginning of the day trend (bullish or bearish) and selling it a few minutes or hours before the end of the day.

Therefore, a feature of day trading is that traders choose not to keep their positions open for more than one day after the market closes. It is very advantageous not to pay overnight swaps. This trading strategy is meant for beginners because it focuses on a single trade and therefore does not disperse.

3 / Swing trading strategy

Swing trading is a strategy that reacts to trends by holding an open position for a few days. This trading strategy is very popular with experienced traders who are familiar with both chart analysis and macroeconomics.

This strategy requires you to be aware of all the trends in the target market and to follow the trade for hours a day without any problems.

4 / Position trading

The latter strategy is the closest to investing, because the goal is medium or long term. Therefore, positions are open for weeks, months and even years. This is interesting for novice traders who want to try the classic investment model.

All that remains is to start by following a strategy above or following your own method.

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