Best online trading strategies 2023

Last updated: 28.02.2023
Dominic Hawker
Author:
Dominic Hawker
Adviser
CFD & Trading
Experience
> 30 years

If you want to succeed in your trading, you’ll need to use a good strategy. We’ve picked a handful of trading strategies that are suitable for all different levels of investor. Take a look below to find your perfect strategy. 

Our list of online strategies include great options like end of day trading that could be good for beginners. Experienced traders will enjoy more complex options like a day trading strategy. So keep reading to find those online trading strategies that can help you get more clinical with your trades. 

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  • End of day trading strategies
  • News trading strategies
  • Trend trading strategies
  • Scalping trading strategies

Picking the trading strategies that work for you

The key thing to remember is that there is no one-size-fits-all strategy for online trading. If someone tries to tell you the opposite, they’re wrong. This is because there are different strategies for different kinds of investors. Some strategies will only work well for those people who are able to put in many hours’ hard work each day, while others can be dipped in and out of as a hobby. 

Plus it’s worth thinking about what kinds of returns your want out of your trades. There’s a big difference in picking a strategy that’s good for a quick short-term gain compared to one that aims to override market fluctuations to give you a return over a long period of time.

Above all, picking a strategy depends on how much risk you want to expose yourself to. All kinds of investment will involve a fair amount of risk, and it’s effectively managing this that will guide the success of your trades. 

This is why starting off with a demo account can be a smart move. You would get to know how each strategy works without having to risk any of your own money. Once you have got used to this, then you’ll be ready to start CFD trading. Just so you know, this is where you trade on the value of an asset rather than owning the asset outright. 

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End of day trading strategy - One of the top trading strategies for beginners

Stuck for time and want to get into trading?

Then try a good end of day trading strategy. Here is where you’ll be trading near the close of market each day. All that you have to do is to compare the price of an asset compared to the previous day and make a decision about whether to buy or sell

It’s a great strategy to use for those who are just starting out, and you’ll normally be able to quickly analyse the market charts before the close of play and make your decision. Just bear in mind that there is obviously an overnight risk which can normally be averted by using a stop loss order.

This is where you instruct your broker to either buy or sell an asset once it reaches a particular price. 

News trading strategies - React before the market does

This is where you’ll make your investment decisions either ahead of a news announcement or after the fact. It could be anything from a change in interest rates to a yearly financial report of a big business. Your trading decision will ultimately be based on how you think the market will react to the news.

The trick is to try and figure out whether the price of an asset has already changed in regard to the news announcement. After all, there’s little point in speculating that an asset’s value will rise if it has already reacted to the news. So make sure that you keep a calendar of when big news announcements will be made when using this simple yet effective trading strategy. 

How trend trading strategies work - Staying ahead of the crowd

This is where you use your predictive powers to make your trade when the movement of an asset is going in the direction of a particular trend. It’s a fairly technical approach that can be used for a variety of assets like forex, commodities and so on. But ultimately, a trend trading strategy will work in an opposite way to having a fixed view of which direction a market should head in. 

This strategy is one that may require you to have a fair amount of nerve. After all, there will be patience required not to sell your asset if its price seems to momentarily defy the trend. Plus it will also be essential to know when your trend prediction just isn’t working. 

Give swing trading strategies a try

Swing trading relies on your skill to anticipate how the market will move. You will research a variety of indicators and patterns so as to successfully trade both sides of a market. This means knowing when to buy a particular asset when you think that its price will rise, or sell the asset when you suspect that its price will fall. 

It’s an approach that may require plenty of experience to know how the market oscillates in response to factors like supply and demand. However, once you know which statistics and charts to pay attention to, a swing trading strategy is something that can successfully be carried out in your spare time.

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See how position trading strategies work - Hold your ground

This trading strategy requires you to be in it for the long term. Position trading basically means that you aim to hold onto your asset long after others have sold their stakes. It’s a long-term approach that ultimately places its faith in the hope that the market value will rise in spite of short-term fluctuations.

Obviously a position trading strategy isn’t best suited for those looking for a short-term gain. Instead, it’s a strategy that will require a fair amount of research up-front, and once you’ve done this, you should be able to let your investment grow over the coming months or years.

Just remember that there’s no guarantee that the market is going to grow and there might be extra broker commission fees with this approach. 

Using day trading strategies

This is a professional trading strategy that requires you to put in the daily work to buy and sell between the market opening and closing hours. While you will hold plenty of different positions in the daytime, your aim is to avoid having your positions open at the end of play. This means that your investment won’t suffer the risk associated with overnight market volatility. 

Day trading is an international approach that will require you to understand how trades anywhere from the Far East to the US could affect your own trades. You can use this strategy for anything from commodities to forex trading and beyond. Just bear in mind that you’ll need a fair amount of discipline to set your own entry and exit limits. 

Try scalping trading strategies

This is a popular trading strategy for those who like to speculate on the forex markets. Here you’d be hoping to make lots of small profits based on the short-term price movements of a currency pair. It’s got the benefit of not leaving your position exposed to the perils of overnight trading and it’s also good for those hobbyist traders who are looking for a suitable short-term gain. 

Obviously, you’ll need to apply plenty of skill and discipline to know when to exit, as even a modest loss could wipe out the scalping profits that you’d accumulated. Plus you’ll need a fair amount of insight to know which markets have the suitable levels of volatility to know when to use this strategy. But if you can handle the intensity, then a scalping trading strategy can be a great option. 

By now you should be perfectly placed to know which trading strategy meets your own levels of experience as well as your own investment requirements. It’s worth noting that there’s nothing stopping you from trying different strategies to see which one works best for you. 

We’d recommend starting slowly, and if possible, use some kind of demo trading account that lets you execute your trades without having to invest your own money. This way, you’ll see how each strategy works and can know which one is best for you. Once you’ve done this, you’ll have everything you need to trade methodically against the rigours of the market. 

 

Best online trading strategies FAQs

❓ Where can I get a list of trading strategies?

It shouldn’t take more than a quick internet search to find a basic list of online trading strategies. However, it might take a little more work to figure out which of these strategies are worthy of your time or not. So be sure to read our guide to trading strategies. This features a full list that you can use to see whether you should try a forex trading strategy or something more suitable to your level of experience.

🏅 What are the best trading strategies for beginners?

Beginners should think carefully about which strategy they use to start online trading. After all, following the wrong strategy blindly could cause you serious financial harm. So read our guide to trading strategies to see whether you should try some of the popular kinds of CFD trading strategy or if another strategy might be more suitable.

❓ Which day trading strategies can I trust?

Day trading is something that requires a fair amount of discipline to know when to enter trades and exit according to the fluctuations of the market. Choosing a strategy ultimately depends on variables such as your expertise and your trading volume. If you read our guide to trading strategies, you’ll see how you can use a day trading strategy suitable to your own investment needs.

🏆 What are the best professional trading strategies?

It ultimately depends on what kinds of returns you are expecting to make from your trades. After all, a scalping trading strategy could suit some people, while a position trading strategy might be better for other investors. Check out our guide to the different strategies like the swing trading strategy that could work wonders with your trades.

👀 Where can I find trading strategies that work?

The internet is littered with examples of strategies that people have tried using for trading. While most people say that these strategies work just fine, we have found that many of these trading strategies cannot be trusted. So be sure to check out our guide to strategies for online trading. This will reveal which strategies will work according to your level expertise and what you hope to get from your online trades.

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