What is Active Trading?

By Investment U Research Team If you buy and sell stocks frequently, you’re participating in active trading. Unlike buy-and-hold or indexed investors, active trading is, well, active. Rather than let a position grow over time, active traders capitalize on incremental gains. They rely on charting and technical analysis to identify entry and exit points. And they minimize time in the market to hedge against risk. The goal is simple: make a lot of trades, and win more than you lose.
It’s important not to oversimplify active trading. It takes a tremendous amount of insight to be a successful trader. You need technical analysis skills and …read more

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