It’s not a surprise that successful trading requires a perfect strategy. In today’s article, we outline a selection of proven strategies widely used in online trading. You can find more strategies and more detailed descriptions in numerous trading forums on the Internet. Let’s get started!
Live Trading
What is live trading? The name speaks for itself — so-called live trading takes place in real time. Trades are opened and often closed again within minutes. An important feature of live trading is that your orders are carried out on the spot.
It often only takes a few seconds, for example, until a stock is added to a portfolio. Live traders use this fact to benefit from small price fluctuations. They’re satisfied with small profits and often carry out dozen or even hundreds of trades in just a single trading day. Live trading is especially interesting for day traders.
Auto Trading
Even with auto trading, the name speaks for itself as well — trades are carried out based on your specifications by a fully automatic trading system without any further action. As a rule, the trades are opened by indicators.
Another category in auto trading are systems that trade on the basis of news releases. In auto trading, traders work with a stop-loss function in order to effectively avoid heavy losses.
Day Trading
In day trading, trades are closed again on the same day they were opened. Day traders aim to get their returns from short-term fluctuations in a highly volatile market. In this way, a day trader can protect himself from price changes occurring overnight. Day traders usually use bar charts with a timeframe of just one or two minutes in order to identify price fluctuations as early as possible.
Volume Trading
How does volume trading works? Here, a decisive source of information that a trader uses to make his/her decisions is a trading volume of assets he/she has advised. The trading volume sums up a level of activities of all market participants in a certain facility for certain periods of time. Every trade plays an important role. With the help of volume analysis, traders are able to identify trends and assess whether they are strong or weak ones.
What other online trading strategies do you know? Just share your knowledge in the comments!
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