Trading Strategy

in #trending8 years ago

If you want to trade in any investment market, you will have to learn some basic strategies. Each of them will allow a negotiation differently in an attempt to gain more. But these strategies are a bit different, and you will use one method or another, so it is necessary to make a choice of strategies before you start trading.


There are three main methods:


Scalping, Day Trading, Swing Trading;


If you prefer a more aggressive type of negotiation, you can use the "Scalping". You can spend a lot of transactions in a shorter time, taking only a few seconds. This requires you to be very present and aware of what is happening. And then you will take full advantage of the leverage transactions. This is a more risky method because leverage can play both up - positive (gain) and down - negative (loss). One of Scalping Strategies, is not hesitate to cut the position you have chosen, if you see that the market is not going in the same direction you have chosen.


It is important not to let the market go in the opposite direction of its position, it is rare that the market back toward him quickly, and with high leverage you can lose a lot of money. This method is useful in graphics between 1 and 5 minutes.


The "Day Trading" is a bit like the "Scalping" because the positions are numerous. So when you play in small fluctuations, this will promote gains leverage. The graphics used are mainly graphics between 5 and 30 minutes, and the big difference of scalping is that all positions should be closed during the day. So at the end of the day, you will know what its gain was, and so you will not risk losing overnight when you are not present to monitor the trading. Not a very simple method for the purpose of leverage. But it is important because sometimes reduces losses, and outweighs the benefits. The target market for this technique is a currency market with high volatility.


And finally the "Swing Trading" which is the method most used by traders amateurs. It is also called the method of trends. It is a much easier method to understand, because you can take a position at the beginning of a trend (high or low), and keep it until the trend begins to change. You can then play in lower leverage. But if the market move faster than expected, you may lose your trade.