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.
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.
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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