Skip to main content

What Are the Different Types of Stock Trading Strategies?

Stock trading involves the procedure of buying and selling stocks from the stock market and the goal here is to attain the maximum level of profit by implementing perfect strategies. A stock trader can go long or short to exploit the market and it can be done by entering or exiting the market. There are predetermined set of rules and regulations that you must follow as well.
With that in mind, there are hundreds of trading strategies with which the trader can trade as well as to shield their valuable investment. However, there are two broad types of trading strategies. One is short-term and other is long-term. The short-term strategy includes the following.
  • Position Trading
  • Day Trading
  • Swing Trading
I have explained both the short-term and long-term stock trading strategies and they are as follows.

1. Day Trading: Day trading is the riskiest strategy among many other trading strategies. This strategy involves trading on a short-term basis and the least time for trading can be a few minutes. Moreover, to survive in day trading, you must be analytical as well as rational while trading. In addition, day traders are mostly reliant on the movements of the stock prices to get in and out of a position. In short, this trading strategy requires careful attention to different market conditions. So, only the professionals can undertake the day trading strategy.
2. Swing Trading: In Swing trading strategy, the trading duration spans for one to five days and the trend analysis is the basis of this strategy. In addition, swing trading strategy always looks for the best possible movement of share prices trend and the traders are required to spend more time for identifying opportunities. Generally, the traders need to be conceptually sound. And they have to put a lot of effort on research work. This type of trading is driven by emotion rather than fundamental trading values. Lastly, if a trader doesn't find the appropriate stock market changes, then trading would be quite difficult to conduct.
3. Buy and Hold Trading: This strategy is a long-term strategy, which is opposite to day-trading. In this trading strategy, you will be required to buy and hold the stocks for a long period of time to grow. There is a theory that is called efficient-market hypothesis, which describes that all the shares are reasonably valued and it is futile to trade the shares repetitively. One important fact that must be noticed is that this theory is applicable for only the efficient market. Additionally, the volatile and fluctuating markets won't even consider it, which ultimately invalidating the strategy in these markets. So, if you research and pick out the best stocks with potential value and return, then buy and hold strategy will earn you lots of fortunes.
Bottom Line
Finally, it can be said that there are different trading theories and strategies that vary from market to market. This is why you have to learn the strategies and educate yourself. You should also take time researching the right strategies. The reason is developing a key strategy is the secret of sauce of success in stock trading! So, don't waste time and start learning!
Stock Trading involves implementing the right strategies. This article will help the readers to learn the right strategies for stock trading!

Labels:

Comments

Post a Comment

Popular posts from this blog

Hidden Truths About Catfish Business!!!

Fish farming like other business has its proms and cons.. And truthfully its a very lucrative and yet a money draining business..  I have read articles about how lucrative the business is and how to invest and reap millions.. All I do is just to laugh on reading such article.. All they want is just for u to buy their manual and make money.. Surprisingly most of them don't have a farm of their own, they are computer farmers who don't have any experience whatsoever in the business.. I know of farms within my area who have shut down their farms due to frequent loss over the years.. I was also considering shutting down myself after I lost close to 2 million naira, yeah u heard me TWO MILLION NAIRA, but after diligent study which took about a year I decided to give it my last shot.. I had to seek help from other farmers, but every farm I went to I noticed they where all also running at loss.. That was when I decided heading to songhai farms at benin repurblic.. At songh...
Post a Comment
Read more

My Noiler Farm Experience (hybrid Of Broiler + Cockerel)

I ordered for 50 noilers online from www.poultryplaza.com and received my order the third day after the order. It was due to my booking late on Wednesday 26th. Everything was smooth. Total cost for 50 noilers including transportation to Lokoja cost N4,400 and N65 for access bank gateway charge for using the atm platform. Grandtotal=N4,465.00 Though the cost of noilers rose sharply on friday to N120.00 Attached are some pictures of the poultry house. I will be summarizing the cost so far outside the housing and hope to see the performance of noilers over the next five months.
2 comments
Read more

5 Reasons You Need To Save Up Money for Your Future

At the end of every month, it's always the same question - How much did you manage to save? But then, the thought also crosses your mind... Why the need to save, when you earn to spend? If you find yourself cash strapped, there's the always the option of borrowing some money. Different people save for different reasons. We've discussed 5 reasons you need to start setting aside a few dollars each month. 1. Emergency Funding - Emergencies are unexpected and uncalled for. A family member might take ill, your roof might start leaking or your drain pipes might get clogged, your car might be involved in an accident or you might have to make an emergency trip. It's worse if you get laid. It is impossible to tide over these unexpected expenses if you don't have any savings to fall back on. So, that's one reason you need to start saving money.
Post a Comment
Read more