Tag Archives: trading strategies

Swing trading the financial markets.

Like i mentioned in an article published earlier this week, trading involves short-term investments. Swing trading investments are longer than price action trading investments, they are investment positions intended to last no longer than
three months. Swing trading has some margin of safety while price action trading is much risky. Swing traders place speculative investment positions in their portfolios normally not intended to run for more than a week. For beginner traders and investors, swing trading is the best and simplest strategy to use and learn before enbarking on new trading strategies.

Swing trading is perhaps the most popular trading method in the financial markets. It is simply unsofisticated, options
and futures trader use this strategy. Technical analysis and fundamental analysis are both applied by most financal market traders while using most trading strategies. Some options trader only apply techncal analysis to execute their trades. And some futures traders use technical analysis solely and others fundamental analysis solely.It wholelly depends on what works
for a trader.

Price action trading.

First and foremost investing and trading are two almost different things. Investing involves long-term investments that range
from three months and more of holding an investment derivative in a portfolio. However investments that are less than three months are considered trades. Price action traders normally hold investment positions not longer than a single day because their trades are based on some fundamentals and technical indicators that are not meant to last for long periods.
Price action traders have to constently monitor their short-term positions because they also highly leveraged. Amatuer options traders trade options using the price action trading strategy, with their trades not lasting for no more than an hour.

Most price action traders use high leverage while using this trading strategy, because they normally generate small profits without the use of leverage. Leveraged price action trades can generate good profits and can also generate
devastating losses. Price action trading requires great financial markets trading . Derivatives may also appear to be volatile most of the time to price action traders. Monitoring volatility movements is important for price action
traders.