| The styles and strategies employed by one stock | | | | decide on which market to invest their money in, |
| trader will not always be the same with another. This | | | | then choose the sector in that market which is the |
| is why there are several kinds of strategies used in | | | | strongest and then buy the best stocks in that |
| stock trading. The key differences among these | | | | sector. Timing is vital in this type of trading as well as |
| strategies are the risks involved and the size of | | | | knowledge and expertise in the factors that affect |
| investment each one wants to put in. There are | | | | the movements in the global market. |
| three basic types of stock market strategies and the | | | | The third type is the "bottoms up" strategy. This is |
| most commonly used is the "buy and hold" strategy. | | | | otherwise called "cherry picking" and the opposite of |
| These are long-term investments wherein the stock | | | | the second type of stock market investing. Using this |
| trader will invest money on a chosen company and | | | | will not necessitate the market and sector research |
| let it stay there for a long period. Many deem it to | | | | and analysis. Investing on certain stocks will not be |
| be the safest way to invest sine most of the | | | | dependent on the market or the industry |
| companies involved in such investments are the "blue | | | | movements but only on the performance of the |
| chips." These are very well established companies, | | | | stocks. Aside from these three major strategies, |
| which are the driving forces of the industry. Novice | | | | there are also other minor ones being used by other |
| traders are better off with this type of strategy | | | | traders such as contrarian investing strategy, dollar |
| since they are not yet well aware of the ins and | | | | cost investing or defensive investing. Given the |
| outs of stock market trading. | | | | complexities of many of these strategies, new |
| The second type of strategy is called "top down" | | | | trades would best get the informed advices of other |
| strategy. What the trader will do here is to first | | | | financial experts. |