Strategies
Trading strategies and approaches for different market conditions.
Trading strategies and approaches for different market conditions.
32 terms in this category
A
Algorithmic Trading
Algorithmic trading is the use of computer programs to execute trades automatically based on predefined rules — price levels, indicators, or statistical signals — without manual intervention.
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.
E
Earnings Play
Earnings Play is a trade entered specifically around a company's quarterly earnings announcement to capitalize on the expected price move or volatility shift.
Event-Driven Trading
Event-driven trading is a strategy that seeks to profit from price dislocations caused by specific corporate or macroeconomic catalysts such as earnings, FDA rulings, or M&A announcements.
M
Martingale Strategy
Martingale Strategy is a position-sizing method that doubles trade size after each loss so a single win recovers all prior losses and nets a profit.
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.
Paper Trading
Paper trading is simulated trading with virtual money, letting you practice strategies and build skills risk-free. JournalPlus can track paper trades alongside live trades so you can compare.
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.
Sector Rotation
Sector rotation is the systematic movement of investment capital between stock market sectors in response to shifting economic cycles, monetary policy, and institutional risk appetite.
Swing Trading
Swing trading is a strategy that holds positions for days to weeks, aiming to capture price swings within a larger trend.
T
Theta Gang
Theta gang is the strategy of systematically selling options premium — via covered calls, cash-secured puts, and iron condors — to profit from time decay rather than directional prediction.
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 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.