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, please follow the advice below before taking the plunge. You will be able to avoid the worst and take advantage of all the good deals that you can achieve with maximum security.

Get informed before you start

Before you start trading with real money it is better to start with a demo account in order to gain experience and anticipate/avoid mistakes.

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

Here are the 4 most used strategies in trading:

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 fit different risk profiles, trading practices and even personalities.

1/ Scalping strategy

The scalping strategy is the most aggressive trading method. Here traders simply keep their positions open for a few seconds to a few minutes and try to make the most 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/ Day trading

This trading strategy consists of taking a position on a financial asset by selecting the trend at the start of the day (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 a day after the market closes. It is very advantageous not to pay the swaps linked to the overnight. This trading strategy is made for beginners because it focuses on a single trade and therefore does not scatter.

3/ Swing trading strategy

Swing trading is a strategy that reacts to trends by keeping a position open 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 your target market and follow the trade for hours a day without any problems.

4/ Position trading

This last strategy is the closest to investing, because the objective 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 get started by following a strategy above or by following your own method.

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