This year is all about gaining strength, confidence and yourself, all over again. It’s all about money and one way to make money is by trading.
Interested in finding out how to trade and which trading strategies to use in 2020? Keep reading.
If you are wondering about how to go about stock trading, here are 5 trading strategies that you can use.
Day Trading
Day trading is one of the most well-known trading styles. In day trading, you can buy and sell securities in the same trading day. Furthermore, in day trading, all positions are held overnight which helps the day trader secure good positions and make the most out of their trades. Day trading is done by professional traders who indulge in day trading to make the most out of day trading hours to earn maximum profits.
Intraday Trading
Intraday trading requires effort and zeal but once you master it, you will perhaps be good to go. Intraday trading essentially involves buying and selling of stocks in the same trading day. Traders usually cash on market volatility in intraday trading to make quick profits. While intraday trading is risky, it can help you earn quick money right away.
Position Trading
Position trading is a bit complicated and it is based on the buy and hold strategy. It is not active trading. You can make the most out of position trading by using longer term charts.
Position trading may last a few days and it is based on trends. So essentially, position trading, based on trends, is the right way to determine and forecast any given price level.
You benefit from position trading by making the most out of your trades since these trades are based on trends. People do position trading to ensure that they base their trades on existing trends.
Position trading is short lived but profitable.
Swing Trading
Swing trading is based on breaking trends and building up on those trends. When a trend breaks, stocks lose value and swing traders get back in the game.
When a trend breaks down, swing traders make their move and probably make it more profitable than usual trades. By the end of the trade though, swing traders buy or sell as price volatility comes in. Swing traders hold their trades for more than a day but for a shorter time period than the usual day trades.
Stay tuned for more updates at Financial Labs.