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Stock Market Trading: Best Trading Strategies in the Stock Market

Updated on April 15, 2014

According to expert stock traders, one can learn stock trading strategies only by his own and that comes with time and experience. Though the best trading strategy is to believe in yourself combined with taking advice of others when trading, but again never trust anyone blindly because it’s your money and not theirs. You lose money you lose game. Learn from everyone, analyze the market, don’t keep on investing more money to recover losses, and never lose hope. Now below are the best trading strategies for stock market traders both for beginners and experienced ones:

  1. Always keep booking profits and taking cash out (try to recover your investments and play with your profits only).
  2. Never mix your trade, i.e., if you play for intraday, square off your positions at the end of day. Do not convert your intraday into delivery if your stock has fallen down, as you can never get a chance to get out of your stocks if they keep falling down.
  3. Never try to average your stocks in a falling market, wait for the market to stabilize, and then try to average (some people are of a view that you should never average and instead use that money to buy some blue chips at cheap prices to strengthen your portfolio).
  4. Always trade with a predetermined amount of money that you have set aside. Do not keep putting in more money in hopes of recovering your losses. If you could not make it before it is not sure that you will make it this time, so it is prudent to do stop trading, wait for sometime, rethink your stock strategy, cool down a bit, and then decide to venture again or not.
  5. Always try to follow what you have decided to do. Do not change your trading strategy after someone at your broker’s office or your fellow trader tells you that you are going to do a blunder by not doing this or by doing that. Analyze yourself and then play it.
  6. Always maintain some cash or safe investment like fixed deposits and don’t break them to invest in shares just because you feel that you will get far better returns here.
  7. Don’t trade on a daily basis.
  8. There are at least 5 to 7 days in a month when the signals are pretty conclusive. Trade only on those days and the profits for the month would be much more.
  9. Do a lot of reading and do your own analysis and research for trading stock.
  10. Never make yourself dependent on any broker. Their calls will rock on for two days. Thereafter you will become overly dependent on them and then they will give wrong calls and run away with your booty. These brokers are hand in gloves with operators. So always do your research.
  11. Use the call given by others only as an aid. Trade only if it tallies with your own findings.
  12. Never utilize your full capital at one go and don’t ever listen to stock experts and tip providers. May be you can attain some basics knowledge from them, but never buy or sell a stock on their recommendation. They themselves need to be profitable first to be able to provide profitable tips to others. No shortcuts here.
  13. You have to trade and learn from yourselves. Books will do no good at all and trade with real money. Paper trading and playing virtual stock market trading games at moneybhai is nothing but waste of time. The truth is that you have to have losses to learn and real loss not notional.
  14. Most important thing is having control on your desires. Anyone can get distracted easily and may take huge risks to earn huge money with the kind of opportunity available here, so it is important to control yourself, but that quality too comes in you when you suffer losses. So if you haven’t had any losses in stock market till now it suggests that you need to learn a lot about markets.
  15. Don’t sell in loss and don’t panic in bad times.
  16. One more thing that applies to every field not just stock market is keep learning and do not feel that you know everything; otherwise, there can be unpleasant surprises in store for you.
  17. Don’t day trade in momentum stocks.
  18. Don’t play on margins.
  19. Ride the momentum in the early phase and do not underestimate both the bulls and bears. Both have the capacity to turnaround on their own.
  20. Just ride the right bus at the right time.
  21. Never invest big in your initial phase of the trading career irrespective of blue chips or high/low beta stocks.
  22. Enter in a lot of scripts (10 to 20) by investing very less amount so that you try to follow these scripts and try to learn about them. This gives a good base. Here loss is minimum but knowledge gained is a huge profit.
  23. Never think that you have learnt everything about this script technically, fundamentally, or trendwise.
  24. Never go blindly by anyone’s recommendation in a huge way because you not only need to track his buy recommendation but need to be there to sell during sell recommendation.
  25. Patience is the key to success. An example of a successful trader, “I started to invest from October 2009 and still not seen green shoots but I will surely see one day”.
  26. You will never lose money with long term view. Just buy and forget and actual earning from equity is not speculation or trading. Actual gain that you will earn in long term is dividend and capital appreciation. The best way is to go 10 year backwards and watch out any old stock prices as compared to now.
  27. Intraday trading looks very attractive at young age, especially for beginners, whereas they should be staying away from it. But those lessons can only be learnt after burning fingers.
  28. One long term Investment is better than hundreds of stock trades.

Avoid intraday trading as you avoid rattlesnake. You may make money in one or two or at the most few days but at the end you will definitely lose. The best way is to invest for a longer term. Pick up fundamentally good companies, buy them at bargain price, and then hold them until you have a substantial profit. If you calculate, then you will find stocks provide extraordinary income over the long term with least risk and more losses over the short term period. So above were the best trading strategies in the stock market that can be useful both for beginners and for experienced traders. Sharing knowledge and learning new things are the ultimate keys for success.


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    • Ruchi Urvashi profile image

      Ruchi Urvashi 6 years ago from Singapore

      yes, i agree. Long term investment with fundamentally good companies is a good advice for new investors.

    • TIDSimon profile image

      TIDSimon 6 years ago from Malaysia

      Informative article from a real investor.

      Nothing teach you better than real life experience.


    • htodd profile image

      htodd 6 years ago from United States

      Thanks great post..Nice

    • soni2006 profile image

      Rajinder Soni 7 years ago from New Delhi, India

      Yes Ocbill you are right. Intermediate is the best route to take.

    • ocbill profile image

      ocbill 7 years ago from hopefully somewhere peaceful and nice

      I trade by doing it intermediate. Day trading is really tough with the markets being connected globally.

    • soni2006 profile image

      Rajinder Soni 7 years ago from New Delhi, India

      Yes Sameer. I like them a lot. You are just awesome.

    • sameerk profile image

      sameerk 7 years ago from India

      nice one , loved it, have u read my love poems,did u like it