Most Profitable Trading Strategies Did you know that there are trading fundamentals that can help you learn about the financial markets and dramatically improve trading performance as well as make trading decisions?

You will have the opportunity to explore different strategy methods and examples of trading strategies At the end, you will be able to test the best strategies on a demo account in order to choose the one that best suits your trading style.

Trading Strategy – Definition

The most profitable trading strategies in trading represent the course of action that a trader uses for all his trades in the financial markets It is essential for any investor, be it a beginner or a professional, that any trading decision is informed and in line with a strict plan.

Test your trading strategy

When trading the most profitable trading strategies, the investor is responsible for making the decision to buy or sell the asset or not to touch the underlying asset.

The many tools available to traders make these decisions difficult and complex because they can involve many aspects of technical and fundamental analysis.

components of investment strategies

Which of the following are the most profitable trading strategies:

• Trading type: There are a variety of strategies suitable for speculative or swing trading.
• Unit of time: There are very effective trading methods for short-term trading, as well as strategies that work best in long-term trading.
• Traded product: It is essential that you choose a trading strategy that adapts to the instrument you wish to trade, whether it is a currency pair, stock index, commodity or stock.
• Earnings management.
• Loss management.

Since trading strategies are usually customized according to the needs of investors, they can also contain other specific components:

• The occurrence of fundamental data (economic news).
• Market trend overview.
• Specific trading indicators.

What are the best markets to apply a trading strategy

Before looking at some of the different types of strategies you can use, you may have already thought about the best markets to trade in.

Since these trading methods are simply a set of rules and conditions that help in making a trading decision, they can be customized according to the specific market in question.

This is why many traders choose to use strategic methods in a wide variety of markets, including:

• Forex
• to share
• Raw materials
• stock indices

One of the most popular ways is to trade CFDs using this financial instrument. Traders can speculate on the rise and fall of prices, without owning the underlying asset. There are also other advantages such as:

• Positive effect
• Trading in any direction (Buy/Buy or Vent/Sell)
• Access to global markets
• Now discover trading strategies according to the chosen trading style.

Methods based on trading style

There are many techniques and methods for choosing the most suitable and most profitable trading strategies Although the sheer number of these trading methods may seem daunting to beginners, the magic of the financial markets is just the fact that there is usually one size fits all.

Depending on the time horizon in which they are trading, investors can choose from the following strategies:

Intraday trading strategies

Day trading is a technique in which traders buy and sell multiple financial assets in one trading session, often closing their positions until the end of the day. In fact, it is extremely rare for active traders to hold positions overnight.

The most common time frames used in day trading strategies are four hours, one hour, thirty minutes and fifteen minutes.

swing trading strategies

It is a method by which traders buy and sell financial assets in order to hold them for days, and in some cases, even weeks.

Swing traders, also known as trend-following traders, often use the daily chart to place trades that are generally in line with the general market trend.

It is common for swing trading methods to use fundamental information or multiple analyzes across different time frames, as more detail is required to properly manage trades for several days.

positional trading method

Centralized trading is a technique in which traders buy and sell assets with the idea of ​​holding them for several weeks or months.

The most profitable trading strategies illustrated usually use a combination of daily, weekly and monthly charts, as well as some kind of fundamental analysis in their trading decisions.

Basically, a position trader is an active investor; He is less concerned with short-term market fluctuations and at the same time seeks to hold long-term positions.

The primary focus of a position trader is the risk/reward ratio associated with a position usually, as a position trader trying to hold trades for several weeks or months, these types of strategies often have very small losses before a large, profitable trade.

This allows the trader to initially risk small amounts on trades, in order to increase the frequency of the number of trades made in order to diversify his portfolio.

investment strategies

There may be a lot of similarities between the most profitable investing and trading strategies, but there is always one key difference.

Investment strategies for investors are designed to hold long-term positions, while trading methods are designed to handle multiple, but short-term positions.

Most investment strategies are designed as stock investing strategies because buying shares of profitable companies can theoretically have unlimited growth potential.

When shares are bought in a company, the potential for loss is no longer unlimited. However, if the company goes bankrupt, it may mean that the investor will lose all of their initial investment.

The best trading platforms

Being able to access a stable and secure trading platform is essential in today’s rapidly changing markets.

The best trading platforms allow you to see the historical price momentum of the instrument you are trading, as well as provide the types of orders you need to place and manage your trades.

Due to the great advances in technology, you can now have your charting and brokerage platform in one place, thanks to the Admiral Markets MetaTrader trading platform package which includes:

• MetaTrader 4
• Metatrader 5.
• Metatrader Web Trader.

Also Read: Basic Forex Trading Strategies And Indicators

MetaTrader Supreme Edition (a custom plugin for MetaTrader 4 and MetaTrader 5, created by Admiral Markets and trading professionals).

Turtle way

The most profitable trading strategies in turtle trading were designed by Richard Dennis and William Eckhard, and contain all the elements of a trading plan that an investor must strictly follow.

The only requirement for this strategy to work is that the trader mechanically follows each rule, whether it is placing stop orders or conditions for entering the position.

The name of this method is associated with the people Richard Dennis and William Eckhard employed as merchants to check whether a person could become a good merchant or if the profession required a certain intrinsic gift.

To conduct this experiment, they provided the particular traders with a set of rules to follow mechanically, just like trading accounts and found that the performance of the traders improved significantly during the four years that they applied this strategy.

The Turtle method can be used in the foreign exchange market, the commodity market and futures contracts (futures).

High volatility is very important for this strategy and order sizes are calculated in a very accurate way.