The life of atrading system is decided by trading strategies. There are severalbasic types of rational trading strategies.
(i) Value-based strategy
That is focusing on the intrinsic value of the stock. One of the most well-known practitionersis Warren Buffett, wholooks for investment opportunities entirely on the fundamentals of the company.
(ii) Trend-based strategy
Generally speaking,it's all about chasing the trend.
(iii) Energy-based strategy
The previous trend type focuses primarily on pricechanges, while the energy type focuses primarily on trading volume.
(iv) Cyclical strategy
Spiral is the most common developmentroutein the world, and the stock market is no exception. A spiral is a cycle.
(v) Change-based strategy
A sudden change in price often means good opportunities for decisions.
The so-called "basic" means that it is something that is abstractly summarized in an ideal model. In practice, it is not necessary to say that there is only one basic strategy. The combination of different strategies into a trading system generally help produce better and even surprisingly good results