A Few Stock Trading Strategies People Use PDF Print E-mail
Written by Shaun Rosenberg   
Saturday, 26 June 2010 09:24
There are literally thousands of stock trading strategies that people use to make money from the stock market. However all of these strategies fall into one of these 3 categories.
by ShaunRosenberg


There are literally thousands of stock trading strategies that people use to make money from the stock market. However all of these strategies fall into one of these 3 categories.

1. Short Term Trading

The first way people attempt to pull money out of the stock market is by doing something called short term trading. This is where traders take advantage of the short term reoccurring patterns that are created as demand rises and falls throughout the day/week/month.

Short term traders as a result will have a lot of losses, but the idea here is to keep the losses short and the wins big so that over the long term they make money.

2. Trend Trading

Just the simple fact that we have bull and bears markets proves that stocks tend to trend either up or down dispite really anything going on fundamentally. This is why trend trading was born, to catch this movement.

A trend trader attempts to catch a stock that is going up and hold onto that stock as long as it keeps going up. There is no need to know anything about the company as long as the stock keeps going up and keeps making them money.

If it starts turning around, then it is time to get out and look for other opportunities.

3. Buy and Hold For The Long Term

The most common way to approach the stock market is by buying strong stocks and holding onto them for the long term. As an added benefit if the company offers dividend paying stocks then investors get a nice reoccurring cash flow which can add up over the years.

Over the long term companies which are fundamentally strong should continue to grow and they should become pretty profitable investments.

Those are the three major strategies. Figuring out which one fits your personality best before jumping in will put you ahead of the game and help you start profiting from the market.

DISCLAIMER: This article is provided as information only and is not to be taken as financial advice.

For more information about the stock market visit Shaun's site about the stock market basics Check here for free reprint licence: A Few Stock Trading Strategies People Use.