EXANTE and SEC: choosing the right strategy

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Here many novice traders who want to engage in trading on the stock markets and increase their capital are stopped by the fact that they are not able to devote to stock trading every day, without being distracted by anything else. View this EXANTE broker review to find out more on the subject.

Here, trading robots come in handy. The correct choice and use of them will help you to solve the problem of lack of time. As a result, you will face great capital growth. A trading robot is an advisor program with clearly defined trading algorithms. Such a program can independently open and close positions without the direct intervention of a trader. However, to make use of such a program, you need to initially set an algorithm by which trading operations will be carried out. This set of rules is a trading strategy, the correct choice of which is of supreme importance for the investor. You will have to manually develop, test and improve your stock trading strategy.

There are three main types of stock trading strategies:

· An active strategy;
· An investment strategy;
· A mixed strategy.

Let’s consider them in detail.

Active strategy

When using this strategy, the trader opens mainly short-term as well as medium-term positions, which allows him to fully or partially withdraw funds from a turnover at almost any time convenient for him. In addition, on the one hand, an active strategy involves tight and clear control of current financial risks. It’s carried out by the limitation of the size of losses in each transaction. On the other hand, it’s possible to increase profits using credit opportunities provided by a broker. At the same time, the risk increases accordingly.

The main instrument of an active exchange strategy is technical analysis, which is used by a trader to make decisions. The main task of an active strategy is to correctly determine the entry and exit points within the chosen time-frame.

An active trading strategy requires a trader to devote enough time and attention to the market. Even if it involves the completion of one or two transactions per week, it is necessary to monitor the situation on the stock market daily and be aware of the latest news that may affect stock quotes, since the moments of profit and loss fixing require constant monitoring. However, this approach is required only at the initial stage. When you create a similar trading strategy, you can make a trading adviser on your own (or hire a programmer). It will trade on the stock exchange instead of you according to the set algorithm. You can successfully use this strategy when trading with the EXANTE broker.

Investment strategy

If you consider yourself more an investor than a trader, then the investment strategy is the best solution for you when choosing an approach to stock trading. This strategy has the following distinctive features:

· With the most optimal return, the investment strategy works well when steady growth is observed in the stock market. In other words, you require a global upward trend.

· An important factor here is the investment period since this strategy involves investing from a year and longer. In other words, the investor needs to be assured that during this period the funds withdrawn by him to the stock market, he will not require for other purposes.

Mixed strategy

In fact, the given trading strategy appears to be a combination of the two mentioned above – the active strategy and the investment one. For the successful use of the mixed strategy, the trader should be ready to devote at least a few hours a week to the stock market. He needs to clearly understand the proportional division of financial resources in the investment portfolio by the investment term.

We have just viewed the most popular trading strategies. Of course, there are a lot of other worthy trading strategies potentially capable of making your acquaintance with the stock market fairly pleasant. So, you are welcome to attend a web forum of the EXANTE brokerage company to get familiar with promising strategies.

Don’t overlook EXANTE

If you are struggling to find a reputable intermediary to work on the stock exchange, EXANTE can be the required solution. In terms of reliability, it’s an exceptionally good company. The broker meets the requirements of the strict SEC regulator.

The broker offers you to work with 150,000 assets within a single account. Transactions are carried out on a reliable and user-friendly trading terminal developed by the company by itself.