What are Global Market Strategies for Traders? | Espresso

Global Market Trading Strategies for International Success

In the dynamic financial markets, success requires meticulous planning and strategic execution, along with effective trading strategies for international success. This article explores myriad trading strategies for both short-term and long-term approaches for traders to increase their chances of success

Published on 26 January 2024

A trading strategy helps the investors to draw a systematic plan to make conclusions concerning the buying or selling of financial instruments. The aim is to achieve a profitable return on investment by capitalizing on market movements. These strategies consider factors like investment style, technical indicators, fundamental analysis, holding period, risk tolerance, and financial leverage. 

Here are the factors to consider before creating an effective trading strategy:

Determining Risk Tolerance

Before facilitating global trade, investors should have a profound understanding of risk tolerance and risk management before crafting an effective trading strategy. 

Ascertaining Time Horizon

The time horizon is a significant factor in determining an intraday trading strategy. Short-term, medium-term, or long-term trading, including buy-and-hold strategy that varies in different time horizons.

Identifying Financial Goals

Every trader has a specific financial goal before entering the market, such as generating income or building wealth. They should determine their financial goals and their willingness to take risks before employing any trading strategy.

Types of Trading Strategies

Intraday Trading Strategies

involve diligent and fast-paced trading style where individuals engage in the buying and selling of financial instruments within the same trading day, with the primary objective to make a profit from the market fluctuations.  

Day traders enter and exit positions strategically during intraday trading and often rely on technical analysis, chart patterns, and real-time market data to make informed decisions. Traders determine the best intraday stocks for today and align their strategy to achieve favorable outcomes in the global market.

Moving Average Crossover Strategy

The Moving Average Crossover strategy helps the traders to identify changes in the direction of the price movement. It involves using a short-term moving average, i.e. 15-20 days, and a long-term moving average, i.e. 50 days.

The choice of moving average periods depends on the preference and the time frame of their trading.

Breakout Strategy

The Breakout strategy commences by identifying key support and resistance levels of the securities. Traders seek prospects when the price breaks above a resistance level or below a support level and try to proliferate from the fluctuations. This strategy is effective when markets are in uptrend. Although, there are circumstances of false breakouts, especially in the range-bound markets.


Scalping involves creating a large number of small trades to capitalize on minimal price fluctuations. Scalpers aim to collect small profits in trading. Scalping requires a substantial time commitment and extreme focus, as traders are actively scrutinizing the market for short-term price movements.

Traders employ various intraday trading strategies during scalping, such as moving average crossovers, stochastic oscillators, Bollinger Bands, momentum fading, pivot points and support/resistance strategy. 

Swing Trading Strategy

Swing trading is a type of trading strategy that falls in between both long-term investing with longer holding periods and shorter timescales of day trading.

Swing traders buy best intraday stocks for today and hold positions for a few days to many weeks in an attempt to profit from fluctuations within an ongoing trend. Swing traders are focused on capitalizing on short- to medium-term trends and market volatility, in order to make substantial profits in between. Swing traders frequently examine charts, technical indicators, and fundamental variables to determine their potential enter and exit points.

Long-Term Trading Strategy

Long-term trading strategy focuses on fundamental strength and growth potential of the assets rather than short-term price fluctuations. Here traders hold their investments for an extended period of time with a belief that the market will reflect the intrinsic value of the securities.

Traders adapting this strategy usually build diversified portfolios that include best intraday stocks for today, bonds, mutual funds, and other investment vehicles. 

Markets for Developing Your Trading Strategy

Depending on the inclinations, objectives, and risk tolerance of traders, they can execute transactions in the following markets:

Stock Market

Stock market involves buying and selling of shares listed on public exchanges. Traders in stock markets meticulously examine the companies to make swift profits. They employ both technical and fundamental analysis to make a successful trading strategy. The focus of the stock market traders lies on corporate actions, capital appreciation, long and short term gains. 

Forex Market

Forex market involves buying and selling of currencies of different countries. It is the largest and most liquid market in the world which operates 24 hours a day and five days a week. Traders in the forex market employ both technical and fundamental analysis to gain a comprehensive understanding of probable currency movements. The forex market is driven by supply and demand, import and export, geopolitical events, monetary policies, and trade relations between the countries.

Futures Market

In the Futures market, traders buy and sell contracts that obligate them to buy or sell an asset at a predetermined price and date in the future. These assets can be commodities like oil, gold, or wheat, or financial instruments, like indices, bonds, or currencies. Traders in the futures market can hedge against price risks and speculate on future price movements to diversify their portfolios. 

Options Market

In the options market, traders can buy or sell contracts that give them the right to buy or sell an underlying asset at a specified price and time. Options trading requires a good understanding of the option pricing models including the factors and risks that affect the option value in future.

The most prominent trading strategies are short term and long term trading. Traders probe for the best share for intraday today to initiate trading. Later they employ the above trading strategies to maximize their returns.

Chandresh Khona
Team Espresso

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