Stock Trading Strategies

In the world of stock market filled with earning opportunities it is a wise decision to pick one or more trading strategies depending on your goals, plans and trading style then stick to that strategy no matter what happens in the market. If you do not focus on your plan and you follow trades that do not fit into your strategies, it can cost you a lot losing money in the market. You have to keep your emotions out of the picture and keep using strategies that you have experienced formally.

It does not matter what strategy you decide to follow, you should always choose the right stock at the right time, with the right price. Set your criteria and find stocks that would match your criteria. Then wait for the opportunity to enter the market at the price you have set as your buying price. Do not get emotional and enter too soon or too late. You should be on top of the news regarding that stock and wait for the opportunity to get out on time. Deciding when to sell you stock depends on the type of investor you are, if you are a long term or a short term investor. No matter which type of investor you are, do not sell your stock when everyone is selling and market is falling. Again do not get trapped in your emotions.

As part of all your strategies, you should consider the importance of both technical and fundamental analysis. You should always research and analyze what you are going to buy. When you want to buy and hold shares of a particular company, fundamental analysis becomes an important step which you will perform financial analysis of the company. When trading short term then technical analysis comes to your picture which you will study charts, analyze the stock prices, and different trends.

If you decide that you want to do day trading then there are certain strategies involved in day trading such as scalping and fading. In a scalping strategy, once you reach to a certain profit point you need to sell the stocks immediately. With fading strategy, you have to be very careful and pay attention to the volatility. You need to sell after quick upward moves.

There are many online programs and training courses that will teach you different stock trading strategies and how to pick the ones that would fit your goals and trading style