Price action trading.

First and foremost investing and trading are two almost different things. Investing involves long-term investments that rangefrom three months and more of holding an investment derivative in a portfolio. However investments that are less than three months are considered trades. Price action traders normally hold investment positions not longer than a single day because their trades are based on some fundamentals and technical indicators that are not meant to last for long periods.Price action traders have to constently monitor their short-term positions because they also highly leveraged. Amatuer options traders trade options using the price action trading strategy, with their trades not lasting for no more than an hour.Most price action traders use high leverage while using this trading strategy, because they normally generate small profits without the use of leverage. Leveraged price action trades can generate good profits and can also generatedevastating losses. Price action trading requires great financial markets trading . Derivatives may also appear to be volatile most of the time to price action traders. Monitoring volatility movements is important for price actiontraders.