logo
logo
Sign in

4 Active Trading Strategies

avatar
Nagaraj SEO

Active trading refers to buying and selling of stocks over a short period based on price movements on short term charts. Traders dealing in active trading believe that profits are mostly earned during the time of short-term trading. Active trading should be tried out by those trying to beat the market average. There are so many strategies that are followed during active trading. All of these techniques are taught at stock market training institute to help traders know the best about stock markets. Some of the strategies are listed as under:

  1. Swing Trading

 

Swing trading sweeps in when there are breaks in price trends. Swing traders start the buying and selling once the price volatility sets in. These trades go on for a day but they are shorter than any other ways of trading. Swing traders made decisions based on fundamental or technical analysis. Swing trading does not require prices to move in a single direction. A side bound or range market is risky for the swing traders. The algorithms are designed in a way to understand when to buy or sell shares.

 

  1. Day trading

 

Day trading is known as the most active strategy of trading. Day trading refers to buying and selling of trades within the same day. Positions take place over the day and no positions take place at night. Day trading is done mostly by the professional traders or the traders who have adequate knowledge about the stock market. Now a days, electronic trading has started to ease the method of day trading for all the beginners. The market makers usually do all the trading in case of day trading.

 

  1. Scalping

 

Scalping is one of the quickest ways used by traders. It exploits various price groups occurring because of order flows or bid spreads. This technique involves buying or selling of shares at a bid price which is different from any of the price points used. The scalpers try to hold on to their positions for a short period. Scalpers try to take advantage of all the short volumes that move within a certain period to avoid any price exploitations.

 

The profits are small in this case and so scalpers search for liquid assets to relate to the frequency of their trades. But scalping does not lead to sudden changes in prices and so, bidders can bid on the same price for a particular period.

 

  1. Position trading

 

Position trading is done depending on the current trends followed in the markets. They use long term charts to position the direction. These types of trades may last for several days or weeks depending on the trend that they are following. The security of trades last in the highs or lows in the markets. Traders do not look for any price change in this type of trading.

 

These are some of the things to be kept in mind before jumping into the stock market. These strategies work towards helping you earn profits in the market.

 

Traders Gurukul offers Best Stock Market Training for Beginners, Share Market Classes, Stock Market Online Trading & Technical Analysis Courses.

collect
0
avatar
Nagaraj SEO
guide
Zupyak is the world’s largest content marketing community, with over 400 000 members and 3 million articles. Explore and get your content discovered.
Read more