Trading stocks without a solid strategy is like jumping out of a plane without a parachute. You can only wish for a soft landing but in all likelihood, you’re going to be splattered on the floor with no one to blame but yourself.
But choosing a stock trading strategy which is perfect for you isn’t as easy as it sounds. In fact, it may be the single most important decision you will ever make as an investor.
The reason is that when you choose a stock trading method or strategy, it changes the way you approach the market, how much time you put into it, and what kind of opportunities you seek, so you need to make sure that the strategy fits your lifestyle, otherwise you will have to fit your lifestyle to the tragedy.
Here are some stock trading tips on how to choose the strategy for you:
1. How long are you planning to hold positions
– Some people are position traders meaning that they can hold a stock for years. This can have many benefits as it requires very little time and maintenance. However, it also means that you won’t see that money again for a long time. You can’t go to the grocery store with stocks, so make sure to choose a stock trading system that allows you to hold position for as long as you like.
2. How much time does it take each day
– Some strategies take a long time to implement. That isn’t something wrong in itself, but it’s something you need to consider for yourself. Unless you’re in love with monitoring markets and sitting in front of charts all day, choose a trading method which can be applied in a short time.
3. Are you a fundamental trader or a technical one or both –
Fundamental traders invest according to a detailed inspection of the company’s financial reports, future analysis, and so on. Technical traders rely solely on the pricing charts to supply them with indicators. You can be successful as both, but it’s more of a matter of personal tendency than anything else. Make sure the stock trading strategy you choose fits in with your preferences.
Regardless of which kind of trader you are, make sure that your method applies to various market conditions and is used by some other successful trader. There’s no need to invent the wheel. Use someone else’s experience and ride on his or her success.
To read more about making money with stocks, click here:
How To Trade Stocks
Jonathan Gibson makes his money from home and has an extensive experience in market trading. To get a Free 6 Part Course on Stock trading for profits from a 30+ year trader veteran, click here:
Market Mastery Protege Review