International Journal of Commerce and Economics

authors
Monsur Ahmed Choudhury, Rajat Bhattacharjee

abstract
Stock market is a major tool of investment as it drives the economic trade and makes sure to have a constant growth in the economy. The current study focuses on examining the effectiveness of trading strategies in stock market so that it will facilitate the identification of trading strategies leading to better performance. This will also enable the better and effective usage of the strategies for new age traders to perform better in the stock market. The impact of various strategies on traders’ performance is observed to understand the extent of effectiveness. The study is based on professional traders actively involved in trading practices identified by snowball sampling. Chi squared test shows that there is a significant association between the demographic variables and trading strategies used. The results further indicate that swing trading has the strongest positive correlation with trader’s performance while intraday trading reflects the weakest correlation with trader’s performance. Regression analysis revealed that scalping trading has the highest magnitude of positive relationship between trading strategies and traders’ performance while swing trading has the highest magnitude of negative relationship between trading strategies and trader’s performance.