7 Essential Active Trading Strategies That Generate Consistent Profits

Discover the most effective active trading techniques used by professional traders to maximize returns in today's volatile markets.

Top 5 Active Trading Platforms Every Trader Must Know

1. Interactive Brokers Pro - Advanced charting tools and low-cost commissions make this the go-to choice for serious active traders.

2. TD Ameritrade thinkorswim - Comprehensive research tools and paper trading capabilities perfect for strategy development.

3. TradeStation - Professional-grade platform with automated trading features and extensive backtesting capabilities.

4. E*TRADE Power E*TRADE - Real-time streaming quotes and advanced order types for fast-paced trading environments.

5. Charles Schwab StreetSmart Edge - Intuitive interface with powerful screening tools and risk management features.

Rule #1: Never Risk More Than 2% Per Trade - This fundamental principle protects your capital from devastating losses during losing streaks.

Rule #2: Use Stop-Loss Orders Religiously - Automated exit strategies prevent emotional decision-making and limit downside risk.

Rule #3: Diversify Across Multiple Timeframes - Combine scalping, day trading, and swing trading to reduce correlation risk.

Rule #4: Monitor Position Sizing Constantly - Adjust trade sizes based on volatility and account balance to maintain consistent risk levels.

Rule #5: Keep Detailed Trading Records - Track every trade to identify patterns and improve your success rate over time.

Rule #6: Set Daily Loss Limits - Walk away when you hit your maximum daily loss to prevent revenge trading.

Moving Averages (EMA & SMA) - Identify trend direction and potential reversal points with exponential and simple moving averages.

RSI (Relative Strength Index) - Spot overbought and oversold conditions to time your entries and exits perfectly.

MACD (Moving Average Convergence Divergence) - Detect momentum shifts and trend changes before they become obvious.

Bollinger Bands - Measure volatility and identify potential breakout opportunities in ranging markets.

Volume Profile - Understand where institutional money is flowing and find high-probability support and resistance levels.

Stochastic Oscillator - Confirm trend reversals and avoid false breakouts in choppy market conditions.

Fibonacci Retracements - Predict potential reversal levels using mathematical ratios favored by professional traders.

ATR (Average True Range) - Set appropriate stop-loss levels based on current market volatility conditions.