Strategies
Trading strategies and approaches for different market conditions.
Trading strategies and approaches for different market conditions.
22 terms in this category
A
Arbitrage
Arbitrage is a strategy that exploits price differences of the same asset across different markets or forms, capturing risk-free profit.
Averaging Down
Averaging down is buying more shares of a losing position to lower the average cost basis, a controversial strategy that can compound losses.
M
Mean Reversion
Mean reversion is a strategy based on the theory that prices tend to return to their average over time, buying oversold and selling overbought conditions.
Momentum Trading
Momentum trading is a strategy that buys securities showing upward price trends and sells those showing downward trends, riding the market momentum.
P
Pairs Trading
Pairs trading is a market-neutral strategy that goes long on one security and short on a correlated security when their price relationship diverges.
Position Trading
Position trading is a long-term strategy where traders hold positions for weeks to months, focusing on major trends rather than short-term fluctuations.
Pullback Trading
Pullback trading involves entering a trend after a temporary price reversal, buying dips in uptrends or selling rallies in downtrends.
Pyramiding
Pyramiding is adding to a winning position as the trade moves in your favor, increasing exposure to a profitable trend while managing risk.
S
Scaling In
Scaling in is gradually building a position over multiple entries rather than taking the full size at once, reducing timing risk.
Scaling Out
Scaling out is gradually exiting a position in portions at different price levels to lock in profits while letting remaining shares run.
Scalping
Scalping is an ultra-short-term trading strategy that aims to profit from small price movements, often holding positions for seconds to minutes.
Swing Trading
Swing trading is a strategy that holds positions for days to weeks, aiming to capture price swings within a larger trend.
T
Trade Setup
A trade setup is a specific combination of conditions from a trading plan that signals a potential entry opportunity with defined risk and reward.
Trading Edge
A trading edge is a statistical advantage that allows a trader to profit over time, derived from a strategy with positive expectancy.
Trading Journal
A trading journal is a systematic record of every trade — entries, exits, position sizes, rationale, emotions, and outcomes — used to identify patterns, fix mistakes, and develop a consistent trading edge. Tools like JournalPlus automate this process with AI-powered analytics.
Trading Plan
A trading plan is a written document outlining entry/exit rules, risk management, and position sizing to guide consistent trading decisions.
Trend Following
Trend following is a strategy that identifies and trades in the direction of established market trends using technical indicators and price action.