Planning for Profit
To be successful on the market, a trader doesn’t necessarily have to have a military-like strategic mind. But ‘strategy’ is still an operative word in investing, and so to have at least a small upper hand, the trader should learn to approach the market with a plan in place and ready to be executed.
Bespoke trading strategies can surely be developed by those particularly savvy and experienced traders among us. For the newbie, though, it’ll take a few goes before custom trading strategies will start forming in mind. Luckily there are a few tried and tested options that, when understood, will put the trader on the front foot toward a possible profit.
Let’s talk here around those strategies. Each has a specific appeal, and there will be one that will get the trader closer to their specific goals. Each should be mastered though, because when leveraged, the tools set up to help in a trade will always prove their worth.
There are a few trading strategies that every trader should know. These include scalping, day trading, swing trading, and position trading.
Scalping is a short-term trading strategy where you take quick, small profits on small price movements. This is best done when the market is highly liquid and there is little to no spread between the bid and ask prices.
Day trading is a bit more longer-term than scalping, but it still involves taking quick profits on small price movements. The difference is that you hold your trades for a bit longer, usually until the end of the day.
Swing trading is a strategy that focuses on taking bigger profits from larger price movements. This generally means holding your trade for a few days or even weeks until the price swings in your favour.
Position trading is the longest-term of all the strategies, and it involves taking a position in an asset and holding it for months or even years. The goal with this strategy is to ride out the long-term trends in the market.
Remember, though, the golden rule of trading is to always trade with risk management in mind. This means never risking more than you are comfortable with losing, and always using stop losses to protect your capital. By following this rule, you will be able to stay disciplined and avoid making impulsive decisions that can lead to big losses. With that in mind, and by leveraging the right strategy, every foray into a trade should be a lucrative one. QuickTrade has teamed up with MetaTrader 5 to give you a trading portal that provides you with the right tools for better trading. With complimentary training, trading room access, free trading signals and many more helpful features, QuickTrade will make sure you’re simply better equipped to make money in the market.