Mean reversion is a fundamental theory in finance. Prices of financial assets tend to oscillate back and forth across historical averages. Learn more here!
Range trading strategies help investors exploit lucrative opportunities when there is sideways price action in the market. Read more here!
Backtesting is determining how a trading strategy would have performed in the past and is an essential element of developing an effective trading system.
In Quant trading price & volume are the most important variables, through statistical models they help to identify profitable opportunities.
Complete guide to option trading strategies - from basic puts & calls to expert spot & options combination strategies. ⭐ Learn more.
Forex has introduced Algorithmic Trading! ☑️ What is it and what's the benefits? ➤ Discover it today with AvaTrade
Traders at AvaTrade can mitigate risk by implementing effective risk management strategies. Learn about risk and how to hedge against it.
Price action trading is a powerful way of picking out and trading high probability trading opportunities in the market. ⭐ Learn more.
A stock breakout could be a great opportunity for investors to maximize profits by riding a new trend from its early beginnings. Learn about breakout stocks now!
Buying the dip means buying an asset when the price has declined. The hope is that price will recapture its previous high or exceed it. Learn more now!
Indices offer less risky, diversified asset. ⭐ Read how to trade indices ⭐ learn about the most popular indices trading strategies for today.
News trading is a strategy that seeks to take advantage of opportunities that arise in the markets when relevant economic data and information hit the headlines
Mathematicians & statisticians spend their lives defining complex patterns ⭐ You just need recognize their results and trade upon them.
Although the simplest form of technical trading, mastering the technique of following a trend is a never-ending quest...
The effect of an announcement can vary based on which markets are being traded. Add to that the price action leading up to immediately...
The Twilight Zone – is where markets become interesting: ⭐ will it or won’t it? ⭐ Will we break through a barrier or bounce off it?
When an asset meanders between 2 defined borders, predictability provides a chance for profit. What happens when the range is too narrow?
If you consider the financial markets a jungle, then your trading strategy is a detailed plan on how you will navigate and hunt successfully. In the financial markets, trading strategies outline how you will determine optimal entry and exit points that will allow you to earn maximum profits with as minimal risk as possible. The huge and diverse forex market has always accommodated varied, flexible trading strategies. However, when trading specialised financial markets, such as Indices, Bonds, Vanilla Options ETFs among others, there are two broad strategies often implemented: day trading and swing trading.
Day trading is simply the opening and closing of trades within a day, or multiple times a day. With profits/losses determined daily, day trading is considered to be as lucrative as it is risky, and a preserve of the more experienced investors. Nonetheless, with proper knowledge and skill, anyone can successfully day trade the financial markets. Day trading requires a great deal of discipline because of the number of trades one can execute in a short period. Day trading also requires proper knowledge in terms of essential trading principles and scheduled economic news on any particular trading session.
This trading method also requires decent capitalisation as well as the knowledge of the best trading hours for your preferred financial assets. Investors who wish to day trade must develop solid risk management plans and also sign up with a reputable and reliable broker whose trading platforms favour the high volume of trades that the strategy is based on. Having access to automated trading software also helps.
These types of trading platforms should also feature low spreads, professional charting and reliable orders’ execution. Swing trading, on the other hand, involves taking advantage of trading opportunities that may last from a few days to a few weeks. The belief is that big money is made from big price swings in the market. Swing trading is a strategy suited for assets that tend to make big directional movements occasionally.
Swing trading strategies require the patience to hold trades for days on end, without getting concerned with short-term fluctuations. Many investors employ swing trading strategies because of the time freedom (you do not need to be glued to your charts) as well as the excellent risk/reward balance that they provide. The most popular swing trading strategies are based on breakouts, wide ranges, trend reversals and trend retracements. Below you will find a selection of online trading strategies covering various financial instruments, and suitable for day traders and swing traders, so read on!