Are you a trader in Dubai or interested in trading in the Dubai stock market? Ideas about trading strategies will always be there. However, there are trading strategies that we recommend to you if you are trading in Dubai. Learn about our far-fetched trading strategies to help you understand more about trading in UAE. 

Dubai stock market is on an uptrend and is one of the best performers in the middle east. Suppose you want to become a reader or investor in the Dubai stock market. In that case, we will take you through our essential trading strategies to help you have a return on your investment. Such strategies include how long you should hold a position and when to exit or enter the market. 

Position trading 

Position trading comprises holding trading positions for a long time. This timeframe could be weeks, months, or years and expect to be profitable in the long term. Investing is the most recognized position trading form, with many holding long-term investments in share portfolios, funds, or pension plans. 

Before you apply the position trading strategy, you need to take a considerable amount of time studying the fundamentals. Getting the basics right will help you strategically open a few trades with the highest value. Being deliberate with your position trading raises your potential profit and risk exposure. Your patience and discipline are vital, especially if you know when to allow profits to run or close the position. 

Scalping 

Scalping is a short-term trading strategy. When scalping, you open and hold a position for a short time. This time may last between seconds and minutes and will allow you to make little but frequent profits. 

The best time to apply the scalping strategy is when the market is liquid and has strong trends. During such times, you could open and close positions quickly as soon as there is a change in the market. As such, you need to spend a reasonably long when scalping to monitor the market trends correctly. 

High-frequency trading 

In high-frequency trading, you can initiate several orders within seconds. High-frequency trading allows you to make huge profits; however, it will need you to react quicker than other trading strategies. Most importantly, high-frequency trading is most suitable for large organizations.

Moreover, people hardly view high-frequency trading as a trading strategy because of its high dependence on underlying technology during the trading process. The trader's preference is minimally considered in this trading strategy. 

Trend trading 

In trend trading, you mostly rely on technical analysis to know the market direction. This strategy is medium-term. Position and swing traders commonly use trends where as long as a trend continues, the traders would maintain the same position. 

Depending on the trend of an asset price, which could be upward or downward, you could buy or sell to make a profit. The most appropriate time for taking a long position is when the market trend would reach higher. On the other hand, during lower lows, it would be best to take short positions. 

Day trading

In day trading, you open positions at the beginning and close them at the end of the day. You could buy and sell several assets on a trading day and take advantage of short-term movement in the market. This way, you would avoid additional costs and risks of holding longer. 

Most importantly, you could use the stop and limits function during day trading to mitigate the loss risks. When you stop a trade, you immediately initiate a safety valve to prevent further losses on your investment.