New Trading Strategies

295

This pandemic has managed to shake the world as we know it. In 2021 we have seen unique events like the Gamestop saga, where GameStop stock price shot up from under $20 to $450, causing a temporary trading halt for their stock.

And this is far from the highlight of the year. The trading world has become exciting and unpredictable, and while there might not have been major changes, we have compiled a list of trading strategies that are working right now.

1.  Meme Trading

2021 has seen a lot of impulsive trades, including the meme stock trades. To make profitable meme trades, the best strategy is to be an early market entrant. For this, you need to closely market social media networks like Twitter and Reddit for any stock market-related news.

Social platforms like Twitter and Reddit are often the first to alert to market sentiments. Many people have made enormous profits through meme stocks; however, many people have also made sizeable losses. Therefore it is essential that you are not a latecomer in meme trading.

2.  The One-Minute Forex News Trading Strategy

The market reacts to the news quite rapidly, whether it’s a change in the interest rates or a recent controversial company announcement. Traders are quick to respond, and if you want to get an idea of where the market is headed post a major announcement, then experts recommend that you take a one-minute pause to assess the situation and then take action based on the market movement you see.

Wait for the initial reaction to die and then pan out your strategy. While it is important to rush your trades, your decisions need to be carefully calculated; otherwise, you run a higher chance of generating losses than profits.

NS Broker is one platform that you can use to get instant market updates. The platform is extremely u+ser-friendly and constantly upgrading, which is a great platform for new traders. It is also mobile-friendly, which means that you always have access to the trading world.

3.  Trend Following Large Caps

Traders have become increasingly risk-averse in the wake of covid, and this has caused a movement towards a winner takes all market. As a result, many investors are displaying an increased preference to follow large-cap stocks, and most money is flowing into US stocks and ETFs.

Traders enter into large-cap stocks during bullish movements; they can also enter into short contracts during bearish movements. There are multiple benefits of trend-following, including a higher level of liquidity, which means that you can trade larger position sizes without affecting the share price.

These stocks also have much more analyst coverage than small-cap stocks, and there is often a strong consensus about the stock position, which can help you make better trading decisions. As a trader, you can also invest in stocks that are well establish and low risk, which gives many investors peace of mind.

4.  Retracement Trading

Retracement trading is when a price reverses its direction for a short time before going on to the direction of its dominant trend. This can be a great opportunity to either buy low or sell high. Traders use technical analysis to identify potential retracements and also distinguish them from reversals.

Fibonacci retracement levels are horizontal lines that help indicate the possible support and resistance levels where price could reverse direction. This tool works best when the market is trending, and this indicator can be described as predictive at best since they attempt to identify where the price may be in the future.

5.  Daily Charts Trading Strategy

Experienced traders make use of the daily charts trading strategies as these trading strategies are less market noise. These charts can give you more than 100 points per day, and they are a more reliable signal for people that make trading decisions on a short time scale.

With this strategy, you don’t need to be on a date with the news or market trends, and one way through which you can look at market trends is by looking for data at 180 periods. The longer the time frame you set, the more reliable your results are going to be. This strategy is also customizable to different traders, and many broker websites offer their clients this functionality.

This strategy can help traders fine-tune their entry and exit points and it can also help traders interpret trends correctly and profit from market movements.

To conclude, if executed correctly, all market strategies can help you generate good returns from your investments. However, a certain level of experience and skill is required, which requires you to practice your hand and be patient.