Fantasy Finance trading strategies to increase your returns
Your trading style will determine what stocks you buy and how you choose them. What are your options? Read on.
Fantastic trading contests are short term contests in which users are instructed to choose up to five stocks from their virtual portfolio.
During the 15- or 60-minute game, a user’s predictions are tracked alongside real-time NASDAQ data to gauge their performance.
At the end of any contest, points are awarded based on the performance of each user. Users can claim various rewards based on the number of points they can accumulate.
Fantastic trading platforms like StockBattle or Investr can provide a great training ground, while also giving users a little something to get started. There are several different styles for trading on the fantastic platforms. We have outlined some of the more common ones below.
What styles of trading are there?
When it comes to trading, there are two main styles: active and passive. Passive trading is your conventional “buy and hold” style of investing. However, this approach is fairly straightforward and doesn’t really allow people to actually manage their investments. Active trading is ideal for people who want to get their hands dirty and Make money.
What is active trading?
Active trading is based on exploiting short-term fluctuations in stock prices. Active traders appreciate short-term moves and capture market trends before they change course. Active trading can be a complicated and demanding practice, but it is much more likely to produce short-term returns than more passive investments.
What are active trading styles?
Day trading is what most people probably think of when they think of active trading. As the name suggests, day trading involves buying and selling stocks on the same day. Nothing is held overnight and all positions are closed by the end of the day. It requires very active management, therefore, most day traders are full time professionals such as market makers and investment specialists.
However, recent advancements in electronic trading through apps like StockBattle or WealthBase have opened up this style to a wider audience. These fantastic trading platforms allow users to choose up to five stocks and see their performance in real time, making intraday trades with just a few clicks.
Day traders generally look for stocks with a medium to high degree of volatility. The old adage “buy low, sell high” is especially true of successful intraday trading.
This is a typical day for a generic stock. Lots of ups and downs. The red circle indicates the best time to buy, after a hard crash, as soon as the price starts to rebound. Then you would simply need to sell at any value above the red line to gain the advantage. Of course, that’s easier said than done, but the general idea isn’t complicated.
Exchange of positions
Position trading, sometimes referred to as “futures trading”, is a hybrid of active trading style and more passive “buy and hold” styles.
Position traders don’t focus as much on specific prices for a stock, but rather seek to follow market trends. Position trading is all about patience and knowing when to hold. Position traders can hold a stock for days, weeks, or even years.
Looking here we can see a typical setup for a position trade. Let’s say you bought and held for a few cycles. But, now you have noticed that the top of the last climb was lower than the last. This indicated that the trend was reversing and it was time to sell.
In a fantastic trading contest, this technique can be used to get out before the tide turns. Once a stock has slowed down, it’s time to sell. Don’t wait for it to start crashing. This is a great way to minimize your risk, while returning a net gain.
Position trading generally involves fewer trades and longer time frames than day trading. This can lead to a higher potential profit, but also increases a trader’s exposure to risk. Patience is the key to successful position trading.
Swing trading depends on the inherent volatility of the markets. At the end of a market trend, there is often considerable volatility in the market. Swing traders will try to exploit this by buying and selling as the trend reverses.
Here we see an over-simplified version of a typical swing trader’s record. You want to buy when the price goes up and sell when the price goes down.
Don’t wait for things to happen to get on board. Buy as soon as the price starts to go up and sell as soon as it starts to go down. There is rarely a “perfect” moment, but there are a lot of “really good” ones.
Scalp trading is the fastest and most demanding form of active trading. Scalp traders tend to buy and sell stocks as soon as they show a gain or loss, hoping to capitalize on any fluctuations.
Scalp traders typically only hold stocks for a few seconds to minutes, making small profits instead, relying on volume. This is the most difficult form of active trading as it forces traders to constantly juggle multiple trades, but is ideal for the fast paced fantasy finance.
Since most fantastic trading contests are only an hour long, scalp trading is an ideal style of trading as it is most likely to generate short-term gains.
It is not uncommon for a scalp trader to buy and sell the same security multiple times in a row as it continues to rise. This results in a lower overall return, but minimizes the risk of any one-time purchase.
Master active trading
Active trading requires considerable management. It can be difficult for new traders to have enough confidence in their abilities to take on such a difficult task.
However, fantastic trade removes much of the risk and provides a safe place to learn the basics while offering a tangible return chance on a user’s time and knowledge.
For those interested in active trading, fantastic trading platforms offer the best method to get acquainted with the ins and outs of the daily market.
Experience is the best teacher
With so many different styles and strategies to choose from, it can be difficult to try to enter the market. However, it is possible to practice without real investment.
Fantastic funding platforms like StockBattle, Investr or WealthBase are revolutionizing the industry by allowing anyone to have a go at playing the market in a fantastic trading competition.
Start trading today
Active trading on fantastic trading platforms is the best way to start learning the stock market. Fantastic trading contests can help users get acquainted with buying and selling stocks with little or no upfront investment.
If you’ve ever been curious about going public, there’s never been a better time. Registration is free and users can start playing immediately. Learn how good you are and maybe even earn a little something for your efforts.