A Trading Strategy is necessary to succeed in the stock market. Indeed, if you want to start investing, you must have an approach strategy to limit your risks and optimize your profits. Best Trading Mentor Fortunately, there are different strategies for each investor profile, even a beginner. Each trader can then grow his capital on the stock market, provided he has a profitable trading strategy adapted to his profile. Follow us in this article to learn all about the best strategies in 2022.
How To Have A Winning Trading Strategy?
To have a winning trading strategy, you must:
Use a trading platform that has the drawing tools, as well as the necessary indicators for your trading strategy. Vantage seems to be the ideal platform for this.
Know which financial instrument you want to trade on: CFs, Futures, Options, etc.
Know which market you want to trade on: Forex, Indices, Cryptocurrency, Shares;
Apply adequate money management in relation to your capital. In general, it is advisable to risk only 1% of your capital for each transaction (trade).
What Are The Most Profitable Trading Strategies
The Day Trading Strategy
Day trading is the strategy most used by stock market investors. Also called intraday trading, this strategy can be very profitable with low risk exposure. Indeed, the price of a financial asset varies relatively little over a day, which considerably reduces the risks to which a trader is exposed. It is a highly recommended strategy for those who want to start trading .
The Day Trading strategy consists of opening one or more positions in a daily session, and closing them before the end of the session. Thus, a trader using this strategy does not keep positions open during hours when the markets are closed.
If you are a beginner trader, day trading is for you. However, we advise you to use a platform that is easy to master in order to put the odds on your side. The Vantage broker platform seems to be ideal for this.
The Scalping Strategy
Scalping can be a very profitable trading strategy if all the techniques are well mastered. Indeed, scalping exploits small price variations. The Scalper can therefore increase its capital thanks to the accumulation of the many “small profits” made during a session.
This trading strategy is one of the most appreciated by professional traders since scalping allows them to take advantage of every small change in price.
By definition, scalping is a trading strategy that consists of opening and closing many positions in a very short period of time (high-frequency trading). Therefore, this strategy is not recommended for beginners since it requires the mastery of advanced trading techniques.
The Swing Trading Strategy
Swing Trading is the most profitable trading strategy over the long term. Indeed, this strategy exploits major market trends that can last for days or even weeks. Thus, a swing trader generally keeps his positions for a few days, or a few weeks.
The Swing trading strategy is ideal for beginners in the stock market since it allows you to detect trend reversal points thanks to a very broad view of the price. Indeed, we generally use the daily (D1) or 4-hour (h4) scales for swing trading.
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