Aggressive trading strategies are popular are popular because they allow you to get a profit in a short period. Read on, and you will learn about aggressive trading and what strategies are best for various markets, including Forex.
Who is an aggressive trader?
The propensity to trade aggressively depends on risk tolerance. An aggressive investor or trader is one who actively seeks to maximize profits by taking on relatively high risks. Therefore, such an investor prioritizes rapid capital growth rather than obtaining a steady income or a gradual increase in existing savings.
Those who trade aggressively tend to grow their portfolios by taking ten steps forward and five back. It is different from other trading strategies that predominantly focus on taking only one step at a time.
Also, aggressive trading targets other assets than conservative trading. Aggressive investors and traders are predominantly focused on stocks, while conservative ones – on bonds.
Aggressive trading is highly risky, so you should not invest large amounts at once.
When aggressive trading works best?
You are probably wondering what time is the best to implement aggressive trading strategies. All investors should be aware that this type of trading is associated with a high level of risk, and there is no ideal period for it. However, a few aggressive trading strategies might help you earn more profits than you lose.
Aggressive trading strategies
Many aggressive trading strategies can become optimal options for earnings if used correctly. But before moving on to them, let’s take a closer look at the three fundamental principles of aggressive trading.
Trading more markets
Aggressive investors or traders can increase profit by adding more markets. For example, aggressive trading with shares such as penny stocks may result in higher returns.
Note! Having caught fire with the idea of quick results, remember that trading multiple markets increases the risk of losing your investment.
Aggressive trading entries
Aggressive trading entries allow you to enter the market from the very beginning of the asset price movement. That is, you must catch both tops and bottoms. When choosing the time to enter the market, two things are crucial:
- Your ability to make a trade right before the market moves.
- Your determining skills of the exact price level.
An aggressive entry method is to buy/sell as soon as the above two conditions are met. For instance, if the asset you chose reaches a support level within the first 20 minutes after the opening signal, you don’t wait for an additional one but buy immediately.
Set aggressive targets
Knowing the right time for more aggressive trading is essential. However, since bull markets differ from bear ones, you must utilize various approaches to ensure a positive outcome.
We recommend following the trend in bull markets. Take your time to close a trade. On the contrary, it is better to be more aggressive in bear markets because downtrends last for a shorter period. Although this trend reversal is usually short-lived, it makes sense to withdraw funds from the market quickly.
You can use these three aggressive trading strategies in any market, for example, in the Forex one.
1-Minute aggressive stock trading strategy
Aggressive investors and traders prefer shorter sessions. Let’s discuss the most popular trading strategy on a 1-minute chart.
1-Minute scalping strategy
The 1-minute scalping strategy is based on the idea that traders should sell in downtrends while purchasing pullbacks in uptrends. The stochastic oscillator and a trendline may help you choose the best times to buy and sell. It is also useful when you need to reach an overbought position and retest the trendline.
To create a trend line, you need at least two points of connection, for example, two lower highs.
General
Aggressive strategies for binary option or Forex trading can bring you profit. However, don’t forget the risks of losing funds, even if you use proven techniques. There is no universal approach to trading because the market is volatile. Trade more aggressively only when you see that the market favors your trading style.