Strategy

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a Strategy is a plan that makes use of your currently available tools and tactics that is designed to achieve a goal. A strategy differs from a tactic in that a tactic is a discrete method of achieving an incremental success that supports the strategy[1].

Examples of trading strategies include scalping, fading, daily pivots and momentum trading [2].

Examples of trading strategies:

Scalping: A trading strategy that involves buying and then selling very shortly after the trade becomes profitable. Because profits tend to be small, the success of the strategy is based on the tactic of placing more small but winning trades than losing trades.

Fading: A strategy in which a trader sells after the financial instrument increases in value, based on the assumption that it is overbought and that others will also take profits. Probable tactics include watching overbought and oversold indicators, such as stochastics and RSI.

Daily pivots: Profiting from daily volatility by buying at the low of the day and selling at the high of the day. Probable tactics include placing fewer trades with exit and entry points supported by indicators or news events.

Momentum: This strategy is based on finding trending markets supported by high volume. Tactics include buying on news releases, riding the trend and exiting on signs of a reversal.

References

  1. Strategy. Merriam Webster Dictionary.
  2. Day Trading Strategies For Beginners. Investopedia.