What are the Possible Strategies Adopted in the Financial Markets?

In talking with other traders, strategies adopted are of the following kinds:

1. Short term daytrading - enter and exit trade within hours
2. Medium term trend following - enter and exit trade within days
3. Long term buy-and-hold - enter and exit trade within months

For strategy #1, the payout is the least, due to the limited movement of an average trading day. Some of the days, there might be large movement, but would be considered a rarity.

For strategy #2, the payout is more than strategy #1, due to the accumulated movement of a few trading days.

For strategy #3, the payout is the most among the 3 strategies due to the accumulated movement of a few trading months. If there is a very strong bull market, lasting a few years, this strategy is solid.

If a trader is considering his strategy, strategy #2 is preferred over strategy #1 and strategy #3 is preferred over strategy #2.

However, if everyone picks strategy #3, there would be no fluctuations in the financial markets!