Which Are The Best Trading Strategies In The Stock Market?

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  1. ngureco profile image81
    ngurecoposted 14 years ago

    Which Are The Best Trading Strategies In The Stock Market?

  2. ShortSalesMVP profile image60
    ShortSalesMVPposted 14 years ago

    I don't think there's one strategy that is better than another one when it comes to the stuck market.  Usually you will have to learn and use more than one strategy, and it all depends on the direction of the market, is the trend sideways, going up or going down, there are strategies to make money in any type of market, you have to learn how to use them properly. Like TTC-A they are many more technical strategy you can use through charting, good luck.


    http://www.shortsalesedu.info
    http://www.shortsalededu.com

  3. dabeaner profile image60
    dabeanerposted 14 years ago

    Google "Core Position Trading" (use the quote marks).  You need a method that "forces" you to buy low and sell high (on average).

  4. jakyas profile image61
    jakyasposted 14 years ago

    There is only one strategy. That is to keep an eye on some companies. Buy and sale accordingly. Don't run behind all the stock with greed to become rich. Follow this and you will be the market king. I have applied this..

  5. aldrin alejo profile image60
    aldrin alejoposted 14 years ago

    Have you ever tried trading for an ongoing passive income in the stock market?

    One of my favourite strategies for passive income is trading the E-Minis. Research it, I garantee your risk is far lesser than trading for capital gains on individual stocks.

  6. traderx profile image60
    traderxposted 14 years ago

    The strategies that I have seen that work over longer periods of time are always a blend of many different styles.  The market ebbs and flows over time, there is no one "way" that will always get you ahead and never do poorly.

    You need something that works in choppier, trend less markets, something that is good at shorting when the trend is strong down, something that plays breakouts on the long side, and something that counter trend trades (fades an up move, fade a down move) - that is the ideal.

    As a regular trader, that is next to impossible to implement yourself, the expertise and cost required to program, test and implement usually far exceeds the benefits you would derive, not to mention the ongoing costs to keep it running. 

    The next best thing is to educate yourself and really learn how to tell what type of trading market it is right now, and then use the appropriate strategy yourself.  You don't need a phd in physics and computers to program something, you can read books and apply strategies others have developed manually.

    The whole key is knowing WHEN you should do A, and when B and when C type trading.  This is what most of the writers never talk about.

    If you wish to see how a real strategy works on a daily basis, I have a fully automated trading robot that is open to the public free of charge.  Many people find it a great tool to find trading ideas during the day.

    http://www.mytradingrobot.com

  7. Ralph Deeds profile image65
    Ralph Deedsposted 14 years ago

    In my opinion, the best stock market trading strategy for most people is not to trade in the stock market and not even to buy individual stocks. Ordinary folks do better by investing regularly in several no-load, low cost, tax effective index mutual funds such as those offered by the VanguardGroup. Most people don't have sufficient money to invest to allow prudent diversification of their investments. Moreover, individual investors are at the bottom of the investing food chain. They are the last to get the good news or the bad news and therefore are in no position to compete with the sharks on Wall Street. Moreover, trading entails considerable transaction costs and tax consequences unless the trading is done in an IRA account.

  8. profile image52
    investipediaposted 14 years ago

    First of all remember that there is no strategy that will give you a 100% success rate. A good strategy might give you around 50-70% success rate. Its these success that will take care of your losses.
    So this is what I do with my trades.

    Lets say you have $1000. The first thing you need to know is how much money you can afford to loose. If its $100 then add $100 to your trading account. Buy a stock/ETF that you like with $1000. Put a stop loss at $100. If  the stocks/ETF goes up say 2-3 % put a stop loss at the buy price  + commision andn increment it from thereon.

    If however the price goes down and you hit the stop-loss you still have $1000 for your next trade. ie ($1000 - $100) + $100. The next time you want to buy a stock you repeat the same exercise. If you do this you will atleast be sure that you do not loose you initial investment and you will always have a plan before hand for the max loss you can take.

  9. C. Whitaker profile image70
    C. Whitakerposted 14 years ago

    Buy when everyone panics and sell when everybody is celebrating.

  10. SMARTrader profile image61
    SMARTraderposted 14 years ago

    Follow my journal on the hubpages daily and convince yourself that I do have the best methodology.

  11. H P Roychoudhury profile image41
    H P Roychoudhuryposted 14 years ago

    Stock Market is governed by many factors. When the economy of the country is in good progress, the stock continues to rise. Besides these, there are people expert in stock strategy, also sometimes play a major roll in the fluctuation of prices. You as an ordinary citizen have to keep all these things in mind. But the basic principle is invest in blue cheeps at low prize but even then study the ground level, where the industry is working, what is annual growth rate, what are future expansion strategy and what is the market demand of the product. Sometimes a new industry shows abrupt rise in stock market and hence abrupt profit.

  12. profile image55
    senthilkpposted 14 years ago

    Use simple technique like MACD,RSI,STOCT,OBV.
    You should be ready to come out when you these indicators give a sell signal

  13. MikeNV profile image68
    MikeNVposted 14 years ago

    Monkeys throwing darts at the Wall Street Journal. Proven to be as effective as the supposed pros.

    Don't buy anything you don't understand.

    If you don't know what a balance sheet is, what an income statement looks like, and how to read it how can you expect to make a rational decision about a companies worth?

  14. profile image57
    Rosa Bergerposted 14 years ago

    I think the best trading strategies depend on your goals. If your goal is to save up for something several years down the road, you should look into companies that have ethical and high-quality management. Their stock is likely to stay in the game.

    You could also look at companies that have regular dividends compared to stocks whose price rises but lack dividends.

    But no matter what you decide, few individuals naje quick and large gains in the stock market.

  15. timingtruth profile image59
    timingtruthposted 14 years ago

    Our strategy is "Recognize and act on the current, long term trend".  Economists identify these trends all the time using common economic data and computers.

    See the complete article at http://timingtruth.com/active-versus-pa … -a-68.html

  16. marketedge360 profile image58
    marketedge360posted 13 years ago

    There are several strategies that are dependent on your approach to risk management.

    A simple, yet effective method is to use the 5day ema / 35day ema crossover. When the 5 day ema moves above the 35day, go long, when it crosses below, go short.

    Focus on risk management and position sizing - the rest will work itself out.

  17. hemmerling profile image60
    hemmerlingposted 13 years ago

    For buy and hold people.. pick optionable stocks with high implied volatility and sell covered calls deeply in the money and the furthest time away (more than a year). Your max profit is predetermined around 35 - 100 percent in a year. You will get this as long as the stock remains higher than the options strike price next year. This means the stock may even be able to drop 30 - 50% and you retain full profits.

    Short term trading? Time the market and never trade against it. It can be done by just waiting 8 or more days into a rally and ensuring DMI indicators are bullish and volume signals are bullish. Have tight stop losses. Down markets have 5 or more high volume sell-off days on an index. Go short. Again, use PSAR or some other method as a stop-loss.

    Even buy blue chips and sell deep in the money call options. You will still own the stock but lower your investment amount. Essentially you can own the dividend paying rights on 10,000 dollars worth of stock for only 7,000 dollars. Dividends go up by 50% and the stock can drop slightly without hurting your capital loss.

    Final idea? Buy volatile stock. Buy longest term Put options at the money. This will provide downside insurance. Next, sell call options every month about 10 - 15% out of the money. The most you can lose in a year (depending on stock but I tested it on Google) is 5 - 10% max. The income from the call options will almost pay off the extrinsic portion of the put options contract. You also stand to gain 10 - 15% capital gains every month if the stock rises. The conclusion? You can only lose 5 - 10% while the upside can be well over a double bagger. It takes monthly option selling but is worth it.

  18. JosephRanseth profile image63
    JosephRansethposted 13 years ago

    The best strategy is to simply pick a market that you are passionate about, learn it inside and out, then follow a small handful of companies within that industry. Buy when those companies are undervalued in the industry, sell when they recover.
    If you focus on finding 1% gains within a 2 week period (very easy when you follow the above method) you will average over 30% annual rate of return.

  19. dablufox profile image56
    dablufoxposted 13 years ago

    This really depends on your own individual circumstances, your intermediate and long term goals and to a certain extent your personality and your attitude to risk.

    If you are relatively new to stock market trading, to be honest I wouldn't trade at all, I would find a good fund which charges low fees.

    This will get you into an actively managed investment which is diversified.

    After you have done this I would then trade stocks which you would feel comfortable owning as long term investments and buy with a medium term trade in mind (a few weeks to three months).

    But just before you buy you would do some serious research on the company and monitor the price and ultimately determine when the price of the stock becomes overbought or to high and then oversold or too low.

    Like skipping rope, time your entry and your exit. You never want to pay too much going in, alternatively when the price goes up, don't be shy of jumping back out, if you'r premature and the price keeps going up don't let it get to you, the price will be back down soon enough.

    Focus on gaining experience and confidence more so than making money.

    If you do this the money will come regardless.

    Ironically I have made the most money when I 'think' the least!

    Once you get a good 'feel' for a stock and thoroughly understand a company, anticipating wild price variations becomes fairly easy as you 'know' what the price of the stock should be, its true or intrinsic value.

  20. soni2006 profile image77
    soni2006posted 13 years ago

    Stock market trading involves a lot of ups and downs because of the volatile market. Here are some interesting strategies that can be applied for more profits..... read more

  21. ngureco profile image81
    ngurecoposted 13 years ago

    Pyramiding trading in the stock market is adding more stock
    positions to a winning stock.  A stock
    can only do three things in any defined time-frame, namely:

    1. It can move in an upward trend

    2. It can move in a downward trend

    3. It can... read more

  22. incometrading profile image61
    incometradingposted 13 years ago

    From years of trading the markets the strategies that have worked best for me are options strategies credit spreads, debit spreads, and covered calls.  they allow me to control risk, stay in trades longer, use less capital, take advantage of market trends, and manage market volatility & options time decay.  For example since 2009 I have been doing a simple covered call strategy on SLV.  Bought my first position back when it was trading at $11.78, now it's well over $35.  Almost every month I have been able to sell out of the money calls on my SLV position.  While not every month has been profitable over the course of the last two years this simple covered call strategy has produces excellent returns.

  23. Rock_nj profile image90
    Rock_njposted 13 years ago

    The same strategies that have worked since the beginning of stock markets.  Buy low and sell high.  Or sell high and buy low, if you like to play the short side. 

    The stock market more or less follows (or sometimes predicts) the direction of the overall economy.  Next time a recession is looming, sell and wait for a low towards the middle of the recession to buy back in again.  Or, next time valuations get way too high, sell short, and cover when stock valuations return to statistical norms.

  24. zebulum profile image69
    zebulumposted 12 years ago

    A Vanguard Index Fund is the best strategy for trading in the stock market, because it will profit regardless of what the bubble and bust busybodies are doing and it comes with tax advantages, no loading fees, and no brokerage fees to reinvest.

  25. froch profile image60
    frochposted 12 years ago

    Best strategy - in my opinion - is strategy connected with individual character of investor. Many people are chosing stock strategy "because John Smith choose it". If John Smith has similar character and abilities to us - it is all okay. But if J.S has better skills from us? There is problem...

  26. tradingideas profile image60
    tradingideasposted 11 years ago

    Know your market. Choose instruments wisely. Have a clear trading system (technical or fundamental) that works (not "the best" or "the Holy Grail", just one that WORKS). Define your profile & understand what kind of a trader you are - some ideas here: http://tradingideas.hubpages.com/hub/De … g-Material ). Follow your system religiously, while applying consistent money management techniques (in line with your risk appetite & financial objectives). Be disciplined, don't overload, don't over-leverage, don't be too greedy or too scared, follow the system. Educate yourself while investing, keep pace with this highly competitive environment, stay informed from just a few good sources & avoid information overload. Money management will make the difference in the long run & not what you trade & where you buy or sell. Having a good money management is 80% of having a good trading strategy. Good luck!

  27. Arati Jadhav profile image55
    Arati Jadhavposted 11 years ago

    The best trading strategies are:
    1) It should be secure.
    2)It provide highest return in shortest period of time.
    3)It should match your personality, situation and resource.
    http://www.religareonline.com

  28. profile image54
    Smarttradeonlineposted 11 years ago

    Its must be secured.
    Simple and unfussy execution, an important aspect in day trading and swing trading.

    http://www.smarttradeonline.in

    1. profile image49
      omshahposted 11 years agoin reply to this

      I also add one thing its must be Quick trade.

  29. Ahdilarum profile image59
    Ahdilarumposted 9 years ago

    You can buy when everyone hates the stock market and you can sell when everybody blindly enters stock market.

  30. Shruti Chouhan profile image60
    Shruti Chouhanposted 4 years ago
 
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