There are four key trading strategies, which are Day, Scalper, Swing and Position Trading.
a. Day The day trading is the method in which the buying and selling of securities are done on the same day. The professional traders who are commonly known as market makers generally do it.
b. Scalper It is one of the quickest strategies, which is employed by the active traders. In this, the currency is purchased at the bid price and sell at the asking price to receive the difference between them. Scalper holds the FOREX for short period and therefore, they search for the markets where the liquidity is high.
c. Swing The swing traders steps in when the trend in the FOREX ends. These traders buy and sell at the price, which is set by the volatility. The trades, which is done in the swing, is not held for more than a day. The rules in the swing trade are set by the technical or fundamental analysis. They are generally known as algorithms. It is necessary for the algorithms to predict the peak or down price of the trade so that it can identify the direction in which the market moves.
d.Position Trading Position trading is considered as the strategy, which is referred to the buy and hold of the currency. It is not considered as the active trading. However, when some advanced trader does it, it can be referred as the active trading. It determines the current trends in the market by using various charts which fall between anywhere from daily to monthly. It is a long trade, which can last for several months also. For determining the trend of the security, the traders look into the successive upper highs and lower highs for the effective judgement. However, they do not forecast any price levels.
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This information is not a recommendation to buy or sell. It is to be used for educational purposes only!
Follow your Trading plan, Remain disciplined and keep learning !!
Please Follow, Like,Comment & Follow
Thank you for your support :)
This information is not a recommendation to buy or sell. It is to be used for educational purposes only!
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