4 Different Types of Active Trading Strategies

1. 4 Different Types of Active Trading Strategies This blog discusses four popular active trading strategies that people can use to make more profit on the trading platforms. Online trading requires the right knowledge regarding stocks, stock trading strategies and related topics if you are to perform it well. Active trading is an amazing trading strategy that can be implemented successfully. Active trading is the act of buying and selling securities based on short-term movements for obtaining a quick profit in short-time. It requires greater time commitment than passive trading as it seeks to profit from price movements in the liquid market. This strategy differs from the prolonged, buy-and-hold strategy used by passive investors, as it involves 'beating the market' through identifying and timing profitable trades, often for short holding www.tradezero.co +1-954-944-3885

2. periods. Active traders believe that short-term movements and capturing the market trend are where the profits are made. There are various methods used to accomplish an active trading strategy. 4 popular active trading strategies - each with appropriate market environments and risks inherent in the strategy - include: •Day Trading: One of the most well-known, common and widely used active trading styles, day trading is the method of buying and selling marketable securities within the same day, as positions are closed out within the same day they are taken, and no position is held overnight. •Position Trading: Position trading is a type of active trading that uses longer term charts–anywhere from daily to monthly -- in combination with other methods to determine the trend of the current market direction. Depending on the trend, this type of trade may last for several days to several weeks and sometimes even longer. •Swing Trading: As the name implies, Swing Trading Strategy is a type of active trading strategy used when a swing comes into the market. Usually held for more than a day but for a shorter time than trend trades, swing traders look for any unexpected fluctuations in the market which can be useful for them, and buy or sell as that price volatility sets in. •Scalping: One of the quickest strategies employed by active traders, Scalping mainly focuses on the gaps in the whole trends of multiple investments and exploits them in order to make them profitable for the user. These are four popular active trading strategies in the market that people can use according to their benefits and situations to make more profit on the trading platforms. If you are finding it difficult to choose a good trading strategy, utilize the advanced direct access trading platforms by TradeZero. For more information, get in touch with us at 1 954-944-3885, or send an email to support@tradezero.co. www.tradezero.co +1-954-944-3885