Monday, 24 July 2017

Two Well-Recognized Active Trading Strategies

The process of buying and selling the securities on the grounds of short term movements in order to obtain profit from the price movements is called active trading. Some people have myth that any trading strategy can be implemented in any type of trading but in actual this is wrong. The active trading strategies are different from that of long term trading or that of buy-hold strategies. In the active trading strategy, the profits are made, where the short term movements and the trend of capturing market exists. In this post, you will get to learn about two methods that are used to obtain the active trading strategies.

Here are the two best active trading strategies.

1.      Day Trading

One of the best active trading styles is the day trading. However, day trading is also sometimes recognized as active trading. This is a method of buying and selling or selling and buying of stocks within the same day. Within the same day, during the market hours the positions are closed and no position is held overnight. Initially, the most experienced traders put their hands in day trading as market fluctuates very swiftly. But these days, the electronic trading has opened the day trading even for newbie’s trader.  

Trading Strategies

2.      Position Trading

A large numbers of people consider the position trading as of buy-and-hold strategy and not of active trading. However, in reality, the position trading is a form of active trading, when performed by the advanced trader. Position trading makes use of longer term charts from daily to monthly that too in combination with certain other methods. This is implemented to find out the trend of the current market direction. Based on the trend of the market, this type of trade lasts from few days to several weeks.

Trading Strategies

The trend traders always wait for successive higher highs or lower highs in order to find the trend of a stock. The trend traders always aim to make profit from the uptrend as well as from the downtrend of the market. Gauging the direction of the market is prime aim of the trend traders. However, they do not put on efforts to forecast any price levels. They jump on the trends typically, when the trend is been established. As soon as the trend breaks they leave the position. Thus we can conclude by saying that during the high market volatility, trend trading is more difficult and its positions are usually reduced.

Money Classic Research closely follows both the active trading strategies. The team of Money Classic is highly experienced and well- qualified. 

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