Active investors can use a variety of strategies depending on their outlook, objectives, risk tolerance, and other specifics. Range trading is one of those strategies. It involves tactically buying and selling a stock over a short period of time. Before you attempt to range trade, you should fully understand its risks and limitations. Make sure you have a plan that identifies your objectives and the constraints of using this strategy within the context of your overall portfolio. Here are some answers to frequently asked questions to help you get started:
What is range trading?
What types of investments can I range trade?
What are some of the risks and limitations of range trading?
What are some range trading strategies?
How is support and resistance used in range trading?
How is volume used in range trading?
How are moving averages used with a range trading strategy?
How might a range trade be set up?
How is range trading affected by market movement?
Next steps to consider
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