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Username: BobM

Rating:
Guru Stars

Asked to: Jun Wang

Date Created: 26 Jul 2019
Category 28
Tag Financial
Question What Is Tactical Trading?
Advice from Guru
Hello BobM,

Tactical trading (or tactical asset allocation) is a style of investing for the relatively short term based on anticipated market trends. Tactical trading involves taking long or short positions in a range of markets, from equities and fixed income to commodities and currencies. Diversified long-term portfolios will often include a tactical trading overlay, which involves allocating part of the portfolio to short-term and medium-term trades, in order to boost overall portfolio returns.

Tactical asset allocation can be contrasted with strategic asset allocation.

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