The 21 most popular trading strategies every serious trader should learn to succeed

Trading Strategies

Known as backtesting, this practice allows you to apply your trading idea using historical data and determine if it is viable. Once a plan has been developed and backtesting shows good results, the plan can be used in real trading. The longer-term tax results of trading are a major factor and may encompass capital gains or tax-loss harvesting strategies to offset gains with losses. With so many different trading strategies, which should you choose?

  • Day trading strategies for stocks rely on many of the same principles outlined throughout this page, and you can use many of the strategies outlined above.
  • Risks involved in holding a day trading position overnight may include having to meet margin requirements, additional borrowing costs, and the potential impact of negative news.
  • Its articles, interactive tools and other content are provided to you for free, as self-help tools and for informational purposes only.
  • In addition to these, macroeconomic factors like inflation, interest rates, Gross Domestic Product (GDP) are also considered.
  • Successful day traders have a solid understanding of market trends, technical analysis and risk management.

The risk involved in holding a position overnight could outweigh the possibility of a favorable outcome. It’s smart to set a maximum loss per day that you can afford. Whenever you hit this point, exit your trade and take the rest of the day off. Once you have a specific set of entry rules, scan more charts to see if your conditions are generated each day. For instance, determine whether a candlestick chart pattern signals price moves in the direction you anticipate.

Why Is It Difficult to Make Money Consistently From Day Trading?

The above is a famous trading motto and one of the most accurate in the markets. Following the trend is different from being ‘bullish or bearish​’. Trend traders do not have a fixed view of where the market should go or in which direction. Success in trend trading can be defined by having an accurate system to firstly determine and then follow trends. However, it’s crucial to stay alert and adaptable as the trend can quickly change.

Trading Strategies

A strategy consists of best practices to estimate the price movements and rules to enter and exit a trade. This makes it easier for users to select an option strategy based on their Nifty or Banknifty market views. The strategies selected have limited losses due to strong risk management techniques that prevent the traders from incurring heavy losses. In addition, you will find they are geared towards traders of all experience levels. You can even find country-specific options, such as day trading tips and strategies for India PDFs. Whether you’re after automated day trading strategies, or beginner and advanced tactics, you’ll need to take into account three essential components; volatility, liquidity and volume.

News trading strategy

No two traders are alike, so everyone has their own go-to strategies. Think of chart patterns as the footprints of the market herd. Patterns can show you stocks ready to move, key levels for price movement, and where to place a stop loss.

Trading Strategies

When potential trading opportunities are identified, one should enter the trade based on the trading plan. Stop loss and profit levels should be set to manage risk and reward. The positions should be monitored and adjusted if necessary based on market conditions. Finally, post trader analysis should be done to refine one’s approach to swing trading. This approach involves buying and holding securities for a short period of time, usually from a few days to a few months.


For example, if you hold a 9 to 5 job you need a different approach as your availability is limited. Don’t quit your Trading Strategies job if you’re not already a profitable stock trader. You need to acknowledge that stock trading is not that easy.

That’s a basket of stocks whose returns closely align with one of the benchmark indexes. “Try investing in the market without putting money in the market yet to just see how it works,” says Moore. “If all of your money’s in one stock, you could potentially lose 50% of it overnight,” Moore says. IG International Limited is licensed to conduct investment business and digital asset business by the Bermuda Monetary Authority. Always do as much research as you can before entering the live markets and get your demo account to hone your skills. One of the great things about trading is that your strategy can be adjusted to fit your circumstances.

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