Directional Trading

What Does Directional Trading Mean?
A general term referring to the strategy used by investors that open positions, either long or short, on the belief that they are able to correctly predict the movement of price in a security.

Investopedia explains Directional Trading
Simple investing. If you think a security is going up, you buy, if you think the security is going down, you sell. This is directional trading, no complicated strategies.

Related Terms

Buy
Long
Option
Security
Sell
Short
Stock
Trading Account
Trading Curb
Trading Floor
More Related Terms

Related Links

Discerning Movement with the Average Directional Index - ADX - Take a closer look at this indicator, which refines your insight into the strength of a prevailing trend.
Forecasting Market Direction with Put/Call Ratios - Options are not only trading instruments but also predictive tools that can help us gauge the feelings of traders.
Which Direction Is the Market Heading? - The easy and under-used NYSE Bullish Percent Index provides insight into market conditions.
Confirm Forex Momentum With Heikin Ashi - This tool smooths trends and makes them easier to indentify.
Trade Forex With A Directional Strategy - Opening long or short positions to cash in on a trend is one of the simplest ways to trade forex.
Investment Strategies For Volatile Markets - Find out how you can change your investing strategy based on market conditions.
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