Being a successful trader requires having the best trading strategies. However, various levels of traders also mean that various strategies must be used. Simple yet functional trading strategies are best suited to beginner traders, while more complex strategies would benefit professional traders more. To give you an idea on some of the simplest Cedar Finance trading strategies you can use, here are two Cedar Finance strategy options you can choose from:

The Bearish strategy

Among the most common strategies you’ll come across is the Bearish trading strategy. This technique is best used when you notice that the values of most Cedar Finance assets are declining. If the market is in such a position, we call this the Bearish market. It leads to most investors selling off their assets, while staying away from investing on new assets for the moment.

To use this technique, you simply need to purchase a “call” or “put” option once you perceive the market to be a bearish one. But the market trend doesn’t stay the same for long periods of time. There’s a possibility of a Bearish market turning into a Bullish market, which leads to our second Cedar Finance strategy.

The Bullish strategy

Another basic trading technique that you can use is the Bullish trading strategy. Unlike the Bearish market, the Bullish market displays an active state, where the prices of many assets are on the rise. This strategy, however, is similar to the Bearish in a way that you just need to place a “call” or “put” option.

Furthermore, there are several factors that you must consider first before using this second Cedar Finance strategy. Among these factors, the latest market news and financial data affect the market trends mostly.

Both trading strategies can be used effectively by observing the market trends first. Take note of how long a trend lasts before a shift takes place. Observe market trend shift repeatedly until you notice a recurring trend. This can greatly help you in determining when to place an option.