The main trading strategies are their advantages and disadvantages of which you should know
Before starting trading on the exchange, a trader must go through several preparatory stages.
The main ones are choosing a broker, studying the trading platform and choosing a trading strategy.
The process of choosing a trading strategy raises the most questions, as it can be quite challenging for a beginner to choose the right option from hundreds presented on various websites.
To make the choice a little easier, you should first select not the strategy itself, but at least the category to which it belongs.
Scalping as the most profitable and risky trading strategy
Without even realizing it, most traders open their first trades using scalping:
The key parameters of this strategy are short trade durations and high leverage. High leverage and a large number of trades allow for maximum profit relative to the available deposit.
Even though a position is opened for only a few minutes, scalping is a rather risky form of stock trading. It requires constant monitoring of open trades and being at your computer.
But if you still want to try your hand at scalping, try trading with a small deposit first. A detailed description of scalping can be found in the section: https://time-forex.com/skalping
News Trading Strategies and Their Hidden Drawbacks
News trading is one of the easiest to understand options for stock trading:
Its core principle is that news influences the prices of currencies, securities, futures, and other assets. A news release can either cause a stock price to plummet or boost it several times over; a trader simply needs to wait for the right news to be released.
In reality, the price may change while awaiting news release, and the rate won't change once the news is published, as the changes have already occurred. Furthermore, other factors besides news may influence the price, such as supply and demand, making price behavior less predictable.
Learning the news trading strategy will take more than one day; information on it can be found on the page - https://time-forex.com/strategy/torgovlya-na-novostyakh
Strategies based on technical analysis indicators
This is one of the largest categories, most of the strategies included in it are based on the use of technical analysis indicators:
These tools operate within the trading platform, analyze the history of trends, and display the results of the analysis on a chart.
Most of these trading strategies can be considered quite effective; they are most effective when news does not interfere with the trend movement.
Using indicators requires some preparation, so it will take some time to start trading effectively. However, the time spent is usually repaid with profit.
In addition, there are many indicators already integrated into ready-made strategies - https://time-forex.com/strategy - their use will significantly reduce training time.
There are many other options for stock trading, but since they are less popular, there is no point in describing them within the scope of this article.
Speaking about my preferences, I prefer trading on the news, although it should be noted that to implement it with minimal risk, you need a fairly large deposit and constant monitoring of the news.
