What is: Keep the Change

What is Keep the Change in Trading?

Keep the Change is a trading strategy that involves holding onto a position for an extended period of time, regardless of short-term fluctuations in the market. Traders who use this strategy believe that over time, the market will move in their favor, resulting in a profit.

How Does Keep the Change Work?

Traders who employ the Keep the Change strategy will typically set a stop-loss order to limit potential losses. They will then hold onto their position, even if the market moves against them in the short term. The idea is to stay invested in the market and wait for it to eventually move in their favor.

Benefits of Keep the Change Strategy

One of the main benefits of the Keep the Change strategy is that it allows traders to take advantage of long-term trends in the market. By holding onto their positions, traders can potentially profit from larger market movements over time.

Risks of Keep the Change Strategy

One of the main risks of the Keep the Change strategy is that traders may experience significant losses if the market moves against them for an extended period of time. It is important for traders using this strategy to carefully manage their risk and set appropriate stop-loss orders.

Examples of Keep the Change in Action

An example of the Keep the Change strategy in action would be a trader who buys a stock and holds onto it for several months, even if the price of the stock fluctuates in the short term. The trader believes that over time, the stock will increase in value, resulting in a profit.

Conclusion

In conclusion, the Keep the Change strategy is a long-term trading approach that involves holding onto positions for extended periods of time. Traders who use this strategy believe that over time, the market will move in their favor, resulting in a profit.