Step trading is the most common trading method used to extract value from stock purchases. In fact, the “buy low sell high” strategy is also derived by a simpler method of step trading. However, this method is not simply buying low and selling high but instead to try and balance your holdings in case of unexpected price movements. In today’s post, we will go straight into the effectiveness of this trading method and how we can use it ourselves when trading stocks. Step Trading requires a “standardised” price gap between trades When using the step trading method, traders will have to identify a suitable price gap between trades to execute it properly. Basically, it is for easier tracking over time as you might be trading multiple stocks. For example, when trading stocks valued below $1, your price gap per trade might be around 5 cents or 10 cents