Trading Styles Of The Stock Market
How can you profit from the stock market ?
The stock market is almost unrivaled in its vast potential for individuals like yourself to create wealth, as it is a direct conduit to commerce and money worldwide. However, the stock market has the possibility for practically infinite loss as well as infinite gain. Some people make a fortune in the stock market, and other loose it quickly over night. Despite unbiased odds, there are tons of common techniques and styles that you could implement to increase your wealth today. Technology has created almost endless avenues in which investors or traders can participate in the stock market, so it is easy to get started. Here are some common strategies of the stock market :
( Day Trading )
The common trading style of quickly buying then selling stocks, between the open and close of the stock market in the same business day is called day trading. Day trading focuses on fast entry and exit techniques, and is one of the many powerful strategies to create wealth in the stock market. The ultimate goal of day trading is to capitalize on the price fluctuations that occur in the stock market at on that specific day. Day trading can can be profitable if done correctly, but also has major risks. Individuals using day trading strategies often hold stocks for as long as few minutes or hours, but can go even longer to the few moments of that business day. Often individuals set predetermined limits in the stock market, allowing for better control of the success or failure of trades. This helps minimize losses while maintaining the potential for significant gains. Day trading requires focused time and dedication to watch each trade from start to finish. This gives traders the ability exit the quickly when losses are considered to high, or when enough satisfactory profit is made. You should be able make decisions quickly or in an instant, to finish with an overall positive accumulated profit while day trading in the stock market.
( Momentum Trading )
Momentum Trading is capitalizing on stocks that are driven by specific events or factors that cause them to increase or decrease in value. This type of trading strategy is commonly used in the stock market with young stocks or recovering companies that grow or lose value very rapidly. This technique can be highly speculative as the stock market has natural fluctuations, not all new stocks succeed, and not all events cause a specific spike positive or negative. Momentum trading takes a keen awareness to specific situations and events that could potentially influence a stock or company to move quickly. Furthermore, one should be able identify the ideal moments to buy or to sell to maximize profit. Selecting stocks or companies with highest probability and potential to recover or grow is definitely an art and science in itself.
( Fundamental Trading )
Fundamental Trading is the technique most commonly used by traders and investors in the stock market. This trading strategy is the practice of researching a company and then trying to forecast when it’s stock value has the most potential to increase or decrease, based on that companies strengths and weakness. The companies overall health and financial promise gives an investor or trader potential insight into how the company might do in the future. This method of trading the stock market if for more long term investments over months and at times even years. Overall you are trying to buy at relatively low costs, and sell higher when the company and stock recovers or grows. Like all trading and investing, the stock value still needs to be monitored continuously over time so the most profitable times to buy and sell are clearer and not missed.
( Technical Trading )
The technique used in the stock market where traders and investors implement signals and charts to speculate when the most profitable times to buy or sell is refereed to as technical trading. Many individuals believe by analyzing charts and trends they can then determine how the stock market is going to move. Technical trading often requires using complicated softwares that are challenging to use all by themselves. However, the major problem with this strategy is that all technical and man made tools are reactive and based on data that only tell traders what the stock market has done, and not what it will do. Frequently, technical tools and software are promoted heavily by brokerages and developers because they are very profitable for them. The big question is are technical tools really helping or hurting traders? Most often is is best to donate your technical indicators and software to your worst enemy.
( Conclusion )
The stock market is not a game, and should be considered seriously and with respect. Despite what others may say, there are no red / green arrows or overnight path to success in the stock market. To win and win big, you must work hard, educate yourself, and go deep to find real answers. Through education, understanding, and mastery can you achieve great success in the stock market. Those who do otherwise, get crushed quickly and easily. Empower yourself and your ability with Trading Harmonically a revolutionary new methodology that will help you achieve ultimate success in the stock market. Achieve higher levels of accuracy and consistency then you ever had before, and stay on the cutting edge.
An article from
tradingharmonically.com , nice one :)
