What are some active strategies in stock market used by traders

Posted by Ayesha Jaiswal on July 3rd, 2017

Now a day, investing in stock markets is in trend and many people make money very speedily through investing in stock market. Most of the people fascinated towards stock trading in past 4-5 years and they earned better return also, but at the same time, many people lost their valuable money as well.

Investing in stock market is a tough task because an investor has to manage various things to save himself from loss, he has to follow latest trends to walk in a level of other smart investors.People can earn a massive return by following strong strategies, smart stock tips provided by financial experts and latest market patterns.

There are lot of trading strategies to trade in stock market like -

1.Day trading – Day trading is the well-known trading concept famous among investors, Day trading as the name suggested it is a method of buying and selling securities within the same day means if a trader buys a security on today then he has to sell it by today only, no position to be held overnight.Day trading is done by professional traders who have good knowledge about market especially market experts.It is a method of buying and selling a share within a single trading day.Day traders are often people who are well educated and professionals and have better market knowledge.They earn a good profit by investing in highly liquid stocks and currencies.

Day traders use risk capital to invest as day trading means they invest money, they have the capacity to lose.Strong strategies also needed for doing effective day trading and earn better outcome.

2.Positional trading – Positional trading is a buy and hold technique of trading where a trader buys position of a particular stock, and hold them for an extended period of time.They take long term purchase decision by following market charts. Facts and figures related to stock market.Positional trading is purchasing assets for long term period, positional traders do not effect with a little fluctuation in the market because they want better return by investing in a long period of time and they believe better return needs the patience of traders.

Positional trading is just opposite from day trading because the main goal of positional trading is to earn profit through moving in primary trends rather than earn from short-term fluctuation that occurs day by day like day trading.

3.Swing Trading – Swing trading is a short term based trading method used in stocks and options.The main aim of swing trading is to analyse the market trends and to take advantages of current trends in securities and improve trades of investors.Swing trading involves specific risk and higher commission cost many financial advisor provide valuable calls to the investor to trade in perfect time so that they can earn desirable profit from the stock market.In swing trading holding time of a position can be overnight or several weeks.Same as in day trading, traders also analyse market patterns, price trends and patterns in swing trading.

The difference between day trading and swing trading is a time period, in swing trading, a trader holds a position at least a night but in day trading he sells his position before the market gets closed.

Active traders use many trading strategies to earn a better return in the stock market.Everyone can make money through stock market investment by following latest charts and patterns.It will depend on traders which strategies should be best and suitable for them.Before selecting a strategy, one needs to explore a little more about available strategies, they can take expert recommendations on stock futures tips, risk involvement and cost included in implementations of that strategy in trading.