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directional trading

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Financial Dictionary

Directional Trading

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 Commentary

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 Links

Discerning Movement with the Average Directional Index - ADX
Forecasting Market Direction with Put/Call Ratios
Which Direction Is the Market Heading?

See also: Buy, Long, Option, Security, Sell, Short, Stock

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