Basic trading strategies, their advantages and disadvantages that you should know about
Before starting trading on the stock exchange, a trader will have to 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, since it is quite difficult for a beginner to choose the appropriate option from hundreds presented on various sites.
To make the choice a little easier, you should first choose not the strategy itself, but at least the category to which it belongs.
Scalping as the most profitable and risky trading strategy
Without even suspecting it, most traders open their first trades using scalping:
Since the main parameters of this strategy are short duration of transactions and the use of high leverage. It is due to high leverage and a large number of transactions that it is possible to obtain the maximum profit relative to the existing deposit.
Despite the fact that the position is opened for only a few minutes, scalping is a rather risky option for stock trading. Its use requires constant presence at the computer and monitoring open transactions.
But if you still want to try your hand at scalping, then first try trading with a small amount of funds on deposit. You will find a detailed description of scalping in the section - https://time-forex.com/skalping
News trading strategies and their hidden disadvantages
News trading is one of the easiest stock trading options to understand:
Its main principle lies in the fact that news affects the rates of currencies, securities, futures and other assets. The release of news can either bring down the stock price or raise it several times; the trader just needs to wait for the correct news to come out.
But in fact, the price may change while waiting for the news to be released, but when the news is published, the rate will not change, since the changes have already occurred. In addition, the price may be affected by other factors besides news ones, for example, the same supply and demand, and this makes the price behavior less predictable.
In order to learn a news trading strategy, you will need to spend more than one day; information on it is 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 work in the trading platform, they analyze the history of the trend and display the results of the analysis on the chart.
Most of these trading strategies can be called quite workable; they are most effective when news does not interfere with the movement of the trend.
Using indicators requires some preparation, so it will take some time to start trading effectively. But as a rule, the time spent is returned with profit.
In addition, there are a lot of indicators already included in ready-made strategies - https://time-forex.com/strategy their use will significantly reduce the learning time.
There are many other options for stock trading, but since they are less popular, there is no point in describing them in the current article.
If we talk about my preferences, then I prefer trading on news, although it should be noted that to implement it with the least risk, you need a fairly large deposit and constant monitoring of news.