ArtsAutosBooksBusinessEducationEntertainmentFamilyFashionFoodGamesGenderHealthHolidaysHomeHubPagesPersonal FinancePetsPoliticsReligionSportsTechnologyTravel
  • »
  • Personal Finance»
  • Investing in Stocks, Bonds, Real Estate, More»
  • Stocks

Common Trading Strategies

Updated on September 22, 2010

Stock Market for Dummies

Successful stock trading strategies are necessary skills that need to be developed when you’re into investment trading. This will help determine your goals, limitations and the risks that you are willing to take. It will help build the path of your investment plans. For those who are still reading books written to help stock market for dummies, you may want to include learning about these strategies as well.

4 Common Trading Strategies

There are 4 different strategies when it comes to stock trading. They don't belong in any specific order and not one of them may be considered far better compared to the other. Each of these stock tips and known methods is very distinct when it comes to their own approach. It also applies to the stock trader that chooses to utilize these strategies. The technique is to cherry-pick one strategy and tries to stick with it for as long as you can.

  • Day Trading - the reason why it is called Day trading is because stocks are bought and sold within the very same day. A Day trader believes in one philosophy alone and that is not to own any stock. They use the stock just to make tons of money out of it. The number of stocks to be bought and sold in a day can be hundreds in number and they all need to be done in just one day. Stock prices oscillate every minute making it a haven for stock traders hungry for the extreme risk factor it brings. Day trading can be very profitable and addictive at the same time.
  • Position Trading - is the opposite of day trading It is a long term commitment for stock traders that use position trading. It involves less risk and a lot of patience. They need to hold on to their stocks, it can be weeks or even months. A stock trader that uses position trading is considered to be accurate when it comes to predicting and analyzing the ups and downs of market trends before it happens. They usually purchase stocks on high trends and sell them on low trends. While the stock market hangs in turmoil, they have a habit of disappearing from the stock market scene. Their unflappability rewards them larger profits.
  • Swing Trading - is like riding the waves but instead of using a surfboard, you use your stocks to do it. It is what they call momentum investing. It's all about taking the plunge at the right time. The prices in the market are always inclined to swing towards high trending stocks. Swing traders buy stocks when they're on the edge of going up and sell them when it's about to crash. It is all about the perfect timing.
  • Value Trading - is an investment made for the committed and determined. Value investors are not looking for sudden improvements or quick turnaround. They are in search of high-quality capital gains. Stock ownership is the name of the game. Diligence and the commitment to do research is the requirement for this type of investing. Value traders are emotionally unattached to the stock market. They pay no attention to its highs and lows. Attention to details and crucial information is what this strategy is all about. The rewards though are well worth your while.

These 4 different strategies on stock trading will help you determine what method will suit your personality best. Stock investing for dummies books are usually useful guides. You will always be considered a dummy for something that you don't know. Now with all these information, it's just a start.

What is your most successful trading strategy?

See results


    0 of 8192 characters used
    Post Comment

    No comments yet.


    This website uses cookies

    As a user in the EEA, your approval is needed on a few things. To provide a better website experience, uses cookies (and other similar technologies) and may collect, process, and share personal data. Please choose which areas of our service you consent to our doing so.

    For more information on managing or withdrawing consents and how we handle data, visit our Privacy Policy at: ""

    Show Details
    HubPages Device IDThis is used to identify particular browsers or devices when the access the service, and is used for security reasons.
    LoginThis is necessary to sign in to the HubPages Service.
    Google RecaptchaThis is used to prevent bots and spam. (Privacy Policy)
    AkismetThis is used to detect comment spam. (Privacy Policy)
    HubPages Google AnalyticsThis is used to provide data on traffic to our website, all personally identifyable data is anonymized. (Privacy Policy)
    HubPages Traffic PixelThis is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized.
    Amazon Web ServicesThis is a cloud services platform that we used to host our service. (Privacy Policy)
    CloudflareThis is a cloud CDN service that we use to efficiently deliver files required for our service to operate such as javascript, cascading style sheets, images, and videos. (Privacy Policy)
    Google Hosted LibrariesJavascript software libraries such as jQuery are loaded at endpoints on the or domains, for performance and efficiency reasons. (Privacy Policy)
    Google Custom SearchThis is feature allows you to search the site. (Privacy Policy)
    Google MapsSome articles have Google Maps embedded in them. (Privacy Policy)
    Google ChartsThis is used to display charts and graphs on articles and the author center. (Privacy Policy)
    Google AdSense Host APIThis service allows you to sign up for or associate a Google AdSense account with HubPages, so that you can earn money from ads on your articles. No data is shared unless you engage with this feature. (Privacy Policy)
    Google YouTubeSome articles have YouTube videos embedded in them. (Privacy Policy)
    VimeoSome articles have Vimeo videos embedded in them. (Privacy Policy)
    PaypalThis is used for a registered author who enrolls in the HubPages Earnings program and requests to be paid via PayPal. No data is shared with Paypal unless you engage with this feature. (Privacy Policy)
    Facebook LoginYou can use this to streamline signing up for, or signing in to your Hubpages account. No data is shared with Facebook unless you engage with this feature. (Privacy Policy)
    MavenThis supports the Maven widget and search functionality. (Privacy Policy)
    Google AdSenseThis is an ad network. (Privacy Policy)
    Google DoubleClickGoogle provides ad serving technology and runs an ad network. (Privacy Policy)
    Index ExchangeThis is an ad network. (Privacy Policy)
    SovrnThis is an ad network. (Privacy Policy)
    Facebook AdsThis is an ad network. (Privacy Policy)
    Amazon Unified Ad MarketplaceThis is an ad network. (Privacy Policy)
    AppNexusThis is an ad network. (Privacy Policy)
    OpenxThis is an ad network. (Privacy Policy)
    Rubicon ProjectThis is an ad network. (Privacy Policy)
    TripleLiftThis is an ad network. (Privacy Policy)
    Say MediaWe partner with Say Media to deliver ad campaigns on our sites. (Privacy Policy)
    Remarketing PixelsWe may use remarketing pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to advertise the HubPages Service to people that have visited our sites.
    Conversion Tracking PixelsWe may use conversion tracking pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to identify when an advertisement has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service.
    Author Google AnalyticsThis is used to provide traffic data and reports to the authors of articles on the HubPages Service. (Privacy Policy)
    ComscoreComScore is a media measurement and analytics company providing marketing data and analytics to enterprises, media and advertising agencies, and publishers. Non-consent will result in ComScore only processing obfuscated personal data. (Privacy Policy)
    Amazon Tracking PixelSome articles display amazon products as part of the Amazon Affiliate program, this pixel provides traffic statistics for those products (Privacy Policy)