Trading strategies guide
Traders use a wide variety of strategies and indicators to take advantage of the markets. Learn more about trading strategies and technical indicators with Capital.com's guide.
Common trading strategies
Traders have a wide variety of strategies at their disposal to try to interpret price movements and take advantageous trading positions. Some traders may use a particular approach almost exclusively.
Day trading is the practice of buying and selling financial instruments within the course of a day. A day trader typically starts trading when the market opens and finishes when the market closes. The idea is to speculate on small price movements.
Discover the world of day trading with our comprehensive guide.
Trend trading or trend following is a trading strategy that involves identifying the direction of a prevailing trend in the financial markets and then buying or selling assets in accordance with that trend.
Delve into trend trading, its diverse strategies, and the tools needed to navigate various markets. Learn the art of following market trends.
Position trading is a common trading strategy where an individual holds a position in a security for a long period of time, typically over a number of months or years.
Uncover the potential of position trading with our in-depth guide. Learn about position trading strategies, tools, and how it compares to other trading styles.
Swing trading is a style of trading that attempts to capture medium-term gains in an asset by holding it for a period of time. It is a trading strategy that involves taking trades over a period of days or weeks, in an attempt to profit from expected price swings in the market.
Learn more about it in our educational guide.
Trading and investing are both ways of speculating on market prices in an attempt to make money. Hence, they are often mixed up. Yet, there is a principal difference between them.
Learn the key differences between trading and investing, and determine which strategy is more appropriate for you.
Technical indicators play an important role in any trading strategy, allowing traders to separate the signal from the noise. Take a look at some of the most popular technical analysis tools below.
Learn how to use Relative Strength Index (RSI) in our trading strategy. Explore the RSI indicator's origins, formula, and its use in combination with other technical analysis tools.
Learn how to identify market trends using Bollinger Bands, a key technical tool that represents volatility range with our comprehensive guide for traders.
A moving average trading strategy is a widely-used technical analysis method that utilises the moving average (MA) of a security's price to identify potential market trends.
EMA is a type of moving average that assigns greater weight to recent price data compared to Moving Average.