| Eschew greed and fear Most new entrants to the | | | | provide you the critical guidance whenever you need |
| online stock trading are beleaguered by the fears of | | | | it. In course of time you develop an intuition about |
| loss and greed. Both these negative features induce | | | | the right stock and right time to trade, which enables |
| you to take wrong steps that hasten the losses | | | | you to make a steady income. |
| rather than profits. Fear makes you buy and sell off | | | | Swing Trading |
| the stocks at the wrong time. You hold on the | | | | Swing trading means devising strategy to take the |
| stocks for too long out of fear that their prices may | | | | advantage "of brief price swings in strongly trending |
| fall further or because of the greed that the prices | | | | stocks and riding the momentum in the direction of |
| will rise further. | | | | the trend." In swing trading, you buy when the trend |
| Invest what you can afford | | | | is up and sell when the trend is down. This type of |
| Before you enter into online stock trading you must | | | | strategy is called "riding the direction of the trend." |
| bear in mind the age-old wisdom that warns against | | | | The basic strategy is to trade a strongly trending |
| investing more amount of money than you can | | | | stock after its current consolidation and correction |
| afford to lose. | | | | period is over. Quite often the strongly trending |
| But the question is why should you lose? | | | | stocks make quick move after completing correction. |
| A determined stock market winner devises | | | | Swing trading is safer and a better strategy of |
| strategies to secure himself from losing any amount | | | | making money than day trading. You get the benefits |
| even if it is affordable. These strategies also protect | | | | of day trading without suffering the tension of |
| you against making knee-jerk reactions. | | | | observing the price movements every minute of the |
| Meaning of stock trading strategy | | | | trading day. As a swing trader, you develop the |
| A stock trading strategy is a kind of game plan that | | | | strategy of holding on to your stock for days, |
| charts out how you are going to successfully invest | | | | sometimes even weeks while you watch the trend |
| in the stock market and derive maximum profits | | | | play out. Swing trading is also known as momentum |
| from it. The most popular stock trading strategies | | | | investing because you trade in stocks that make |
| are: day, swing and position trading. | | | | major moves. |
| Day trading | | | | Swing trading is a great strategy for the new |
| Day trading involves buy and selling the stocks the | | | | entrants as well as part time investors in stock |
| same day. Day trading is conducted to derive | | | | trading. Since your trades are not frequent, you have |
| immediate benefits from stock price fluctuations as | | | | to pay less in brokerage fees as well. |
| the trading day unfolds. The goal of a day trader at | | | | Position trading |
| the end of the day is to own nothing and yet makes | | | | Position trading is also known as investing. It involves |
| a profit. Day trading is a very risky business and is | | | | taking a position in a stock with an objective of |
| not for the newbies and the faint-hearted. A single | | | | holding on to it for a stipulated term, which may |
| bad move can work havoc with your finances. | | | | range from a few days to months or even longer. |
| Online day trading has become one of the most | | | | Position traders are obviously long-term traders and |
| powerful tools for making quick money in the United | | | | are not bothered about the day-to-day fluctuation in |
| States even though the economy has been sluggish | | | | stock prices. |
| in the recent years. | | | | The strategy for making fast and risk free money |
| Lots of people are making money through day | | | | through position trading is to identify a trend in the |
| trading. But you can make a killing in day trading only | | | | market as early as possible. Once you identify the |
| if you are well versed with the techniques of buying | | | | trend, you take your position, ride the momentum of |
| and selling the stocks at the right time. You need to | | | | the trend and close your position as soon as you |
| develop technical and fundamental strategies to | | | | notice reversal in the trend. Ordinarily the markets |
| determine when exactly to buy and sell your stock. | | | | follow the cycles of ups or downs. Position traders, |
| You also need to know how much to diversify your | | | | therefore, usually buy into an up trend and sell into a |
| portfolio and manage the risks by spreading your | | | | downtrend. They stay out of the market when it is |
| investments. Your broker is always available to | | | | neither up nor down but remains sideways. |