| There are two main strategies being adopted by | | | | These strategies are of lower risk since it demands |
| many traders that may require various types of | | | | well-calculated diversifications. It also involves little or |
| approaches. One of the most used is the non | | | | no emotions since there is less human interference |
| directional trading strategies, the other being the | | | | when trades are made according to strategies that |
| directional trading strategies. The former, also called | | | | are pre-determined. With this type of strategies, |
| neutral strategies, is when traders do not take any | | | | traders are offered less trading risks whether they |
| net short or long positions and instead manages to | | | | use innovative or traditional styles. |
| match his positions wisely. | | | | Just as many other things, non traditional trading |
| Non directional trading strategies however are quite | | | | strategies also has disadvantages. Firstly, this cannot |
| complex and may require pre-defined trading | | | | be used in all the types of markets and financial |
| guidelines and rules as well as a very good | | | | instruments. Also, the use of this style will require |
| automation. These types of strategies, e.g., pair | | | | great forex market knowledge as well as |
| trading strategies, arbitrage strategies, sector | | | | complicated trading systems. Lastly, there would be a |
| matching strategies, etc., are used by the so-called | | | | need for a higher degree of money management |
| big players, the expert traders. | | | | with this type. However, the advantages still |
| The non directional trading strategies are ideal for the | | | | outweighs the disadvantages. This is the reason more |
| large scale trader that usually holds high position sizes. | | | | and more people are adopting this type of strategies. |