Top-down investing is an investment approach that begins with an analysis of the broader economic and market factors before narrowing down to specific investment decisions. Essentially, it involves assessing the macroeconomic environment, such as the overall state of the economy, interest rates, inflation, and geopolitical factors, to identify industries or sectors that are expected to… Continue reading Trading Strategies: Top-down Investing

Leveraging, in the context of trading, refers to using borrowed capital to increase the potential return on investment. Traders can leverage their positions by using margin accounts provided by brokers, which allow them to borrow funds to amplify their trading positions beyond their own capital. Leveraging can magnify both gains and losses, making it a… Continue reading Trading Strategies: Leveraging

Pairs trading is a market-neutral trading strategy that involves identifying two correlated assets, such as stocks, commodities, or currencies, and simultaneously taking long and short positions in them with the aim of profiting from the relative price movements between the two assets. The strategy relies on the assumption that the prices of the two assets… Continue reading Trading Strategies: Pair Trading

Arbitrage trading is a strategy that seeks to profit from temporary price discrepancies for the same asset (or similar assets) in different markets or from mispricings between related financial instruments. The essence of arbitrage is to buy low in one market and sell high in another market to lock in a risk-free profit. Here’s how… Continue reading Trading Strategies: Arbitrage Investing

Dividend investing is a strategy where investors focus on purchasing stocks that pay regular dividends, which are a portion of a company’s earnings distributed to shareholders. The goal of dividend investing is to generate a steady stream of passive income through dividend payments while also benefiting from potential capital appreciation over the long term. Investing… Continue reading Trading Strategies: Dividend Investing

Scalping is a high-frequency trading strategy where day traders aim to profit from small price movements by executing a large number of trades within a short period, typically seconds to minutes. Scalpers target liquid markets and rely on tight bid-ask spreads to capture small profits on each trade. The Scalping trading strategy: Quick Profits: Scalping… Continue reading Trading Strategies: Scalping

Day trading is a trading strategy where traders aim to profit from short-term price movements in financial markets by buying and selling securities within the same trading day. Day traders rely on technical analysis, chart patterns, and intraday price action to identify trading opportunities and execute trades for quick profits. Let’s take a look at… Continue reading Trading Strategies: Day Trading

So we are going to move away from the Buy and Hold strategies and the tactics therein and move on to something that is currently dominating the MarketDraft platform, Swing Trading! It’s the basis for every contest at MarketDraft, for the moment, so most of you should be extremely familiar with it and have applied… Continue reading Trading Strategies: Swing Trading

Growth Investing is an investment strategy where investors seek to capitalize on stocks with strong potential for above-average growth in revenue, earnings, or other key metrics. The goal is to identify companies that are expected to experience rapid expansion and to invest in them with the expectation of significant capital appreciation over time. Growth investors… Continue reading Trading Strategies: Growth Investing

Value investing is an investment strategy where investors seek to identify undervalued stocks trading below their intrinsic value. The goal is to buy these stocks at a discount to their true worth and hold them until their market price reflects their intrinsic value, generating a profit in the process, as a result this works extremely… Continue reading Trading Strategies: Value Investing