What are trading strategies?

Trading strategies are like recipes that help people decide when to buy or sell things, just like how you choose which snack to grab from the kitchen.

Imagine you and your friend are playing a game with candies. You both take turns picking candies from a jar, but you want to win by getting more candies than your friend. A trading strategy is like a plan that tells you when to pick a candy (buy) or put one back (sell). Some people might wait until the jar has only a few candies left before they jump in, that’s one kind of strategy. Others might take a candy every time it's their turn, no matter what, that’s another.

Some strategies are like following a map: if you see a certain sign (like a price going up), you know to stop and take a candy (sell). Other strategies are more like guessing games, sometimes they work great, other times they don’t. But the goal is always the same: win more candies by making smart choices.

Just like how you might have different ways of winning at a game, people use many kinds of trading strategies to help them win in the real world too!