tactical trading strategy definition

of how developments are affecting the stock price, the investor may also use the technical charts. This type of trading can be important when investing in cyclical investments that may substantially fluctuate in different investing environments. Technical charts can show a wide variety of patterns, channels, trends and price ranges that can be used at the investors discretion to identify profitable entry and exit points. Usually, technical analysis is more of an important consideration in tactical trading strategies as it can be helpful in following price trends and determining optimal entry and exit points. These strategies are used by hedge funds and are also available through publicly traded managed fund strategies as well. Tactical trading involves taking long or short positions in a range of markets, from equities and fixed income to commodities and currencies. Sovereign interest rate policies are one of the most common catalysts for market changes globally.

They may also take both short and long positions depending on their view of how market developments are affecting potential investments. When these rates rise they make issuance of new fixed income investments more attractive for investors. Tactical Trading Considerations, tactical traders typically seek to deploy more active trading strategies than just buy and hold. Macro strategies can use both short and long positions to profit from all types of changes occurring in the investing market. Many other broad market catalysts also exist such as trends in labor market conditions, revised international tariffs, global negotiations over oil production, varying levels of metal commodities production and varying levels of agricultural commodities production. Tactical traders may seek to exploit market anomalies or more responsibly follow their investments in an active strategy that takes into consideration significant changes in the investing environment. Next Up, breaking down 'Tactical Trading'. Tactical trading is generally more complex and may involve higher risks than standard long-term trading strategies. It is also used by investors who seek to identify short to intermediate profit opportunities that occur across markets as new developments occur.