January 7, 2016 at 1:07 pm #399Anonymous
If you’re just beginning to consider trading in the equity markets, stock trading strategies should be your number one priority. Stocks are excellent instruments if employed correctly to gain short term profits in the financial markets. One area where new participants fail is beginning without a well thought out plan or system designed to increase the odds of success. In others words, you must know what you are going to do before you ever place your first trade.
Most people when starting out find one trade set up that works for them. They are comfortable with the set up and have the confidence to execute the trade whenever the market presents the set up. It is important to understand that your system must be applicable to your personality and risk tolerance. This is why in the beginning, it is crucial to find one pattern, chart formation or moving average combination which provides enough winning trades to outperform losing trades. Once you have built up your account you can begin experimenting with other set ups
Your chosen time frame is also another important factor to consider when choosing to go after short term profits. If your time is limited, swing trading may be the method needed. Swing traders profit from holding positions anywhere from a couple of days to a few weeks. This style is ideal for people that do not have the time to sit and watch the daily market session everyday.
For others, day trading stocks is the best method if they have several hours each day to monitor stocks. Some choose only to trade the morning hours at the opening bell and go about the rest of their day as they please. Some only trade both the morning hours and afternoon hours, taking the New Your lunch off since things tend to slow down during this time period.
Some choose to use a method called scalp trading, rapidly taking a point or two then exiting the position banking small profits. However, they are not open to as much exposure to market forces and losses are minimized since rules are strictly obeyed with this type of system
Whichever stock trading strategies you choose, it is important to remember that guessing, hope and chance have no place in the equity markets. Technical analysis and rules based systems are the only approach which equates to long term success.
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