A trading strategy is a fixed plan for buying and selling securities designed to generate a profitable return on the investments. It should be objective, consistent, quantifiable, and verifiable. The strategy is founded on fundamental analysis or technical analysis so that the inevitable systemic risks cannot lead to catastrophic effects on financial instruments. When building a trading strategy, traders should formulate clear goals that they aim to achieve. A trading strategy outlines the investor’s financial goals, including risk tolerance level, long-term and short-term financial needs, tax implications, and time horizon Before executing a trade, an investor needs to perform solid market research on the current market trends and patterns. A trading plan sets out the strategies of buying and selling assets, ranging from bonds, stocks, futures, options, FTEs, among other securities. When creating a trading strategy, an investor works alongside a broker-dealer to choose profitable trading products and manage trading activities. Once a trading strategy is created and executed, the trader monitors the markets and manages the trading positions to ensure they align with the initial strategy. The trading strategy keeps track of the risks, returns, and impact of current trades on the investor’s portfolio.