Trading Strategies

There are many trading strategies you could adapt to your trading experience. Your job is to find the one which suits best to your plan and goals. Keep in mind that what works for other traders might not work the same for you, because they have different levels of knowledge, expertise, different levels of investment and so on. How can you decide which strategy is the best for you? Well, let's consider your personality type, time available to trade, capital available to invest, knowledge and experience.

Different traders act differently because they differ in their needs, goals, experience, knowledge, ambition and capital to invest. This is why you need a strategy. Your own strategy. Financial market is not easy. It is a huge market, complex and it asks to choose one trading style which suits you the best, so you can succeed. It is normal to find out that a strategy which is successful for you, does not work the best for somebody else and vice versa. Consider your personality, availability and experience.

Selecting your strategy doesn't mean to stick with it forever. Market changes, conditions change so should you. Adapt your strategy based on opportunities. It is a good idea to know all types of trading strategies and adapt what is most suitable any moment a change is needed to improve your experience.

News trading strategy

This strategy is based on news and market expectations. It considers the current state of the market before and following news announcements. It asks for a well trained mind on trading because news moves very quickly on virtual media, so it is needed to take advantage of it at the right time. You as a trader needs to make a quick decision on how to trade the effect the news has on a certain asset. Before deciding consider these two questions: Has the news already given full effect on the asset’s price or partially? Is the news matching to the market expectations?

End-of-day trading strategy

This strategy suggests to trade near the time the markets close. Traders who choose this strategy become active when the price is settling down by the end of the day. This strategy asks for the studying of the price behaviour in the previous day. You would speculate on how the price would move based on the past patterns and the indicators used to define it.

It is crucial to decide on a set of risk management orders, including stop loss and take profits order to reduce any overnight risk.

It is considered very suitable for a starter trader, because it does not need many positions to open and it asks for less commitment. Trades need to be opened at night or in the morning, so it will take you less time compared to other strategies.

Swing trading strategy

Swing trading means that traders open their positions in both cases, when the prices are going up or down. Swing traders go for a buying position when they suspect the market to go up, and open a selling position when they expect the market to go down. This strategy is a very technical approach to analyse markets, it is achieved by studying charts, individual assets movements or group of assets.

In different terms, find strategies with these names:

1. Day Trading

Positions which are opened in the beginning of the day are closed by the end of the day.

2. Position Trading

The position is held open for weeks, months, years.

3. Swing Trading

Larger capital invested in a trade, which stays open for days or weeks.

4. Scalping

A position is held open for a short period of time, from a few seconds to a few minutes.