Strategies For Stock Trading

Stock Trading is not only hard work. It calls for a lot of education. Before you leap into the world of stock trading you should educate yourself. This is the only way you can save and preserve your capital. You should learn the qualities of a Successful Trader. You must learn how to control your emotions. Professional traders know well to not become emotional. There are some base quality stock tips which all successful stock traders follow. When it comes to stocks the most important part about turning a profit is your strategy. Do you have a strategy that you are following to make money? Investing is like having a baby, you have to have a plan for everything that you do. Don’t think that the stock market is going to treat you well, if you don’t have a strategy in place then the stock market will hurt you.

The following 3 strategies are basic strategies of share tips that are used by many big time investors, it is up to you to modify each strategy to meet your goals and financial expectations.

Gap trading – Gap trading is very simple, all you are doing is buying into a stock that is about to hit a gap (normally the next day opening). The reason this works is because you sit around looking for stocks in the news or stocks that have just rose in price substantially and didn’t stop at the closing bell. The reason these work so well is because stocks that are rising and didn’t stop before the market ended almost always increase in price even more overnight.

Shorting stocks – Shorting stocks is something that has got a bad name in recent years and it is a real shame that it has because it’s a great way to make money. Shorting is simply where you bank on the stock dropping in price. The great part about this strategy is that you can short almost any stock as long as you have the deal in place, but you only want to short stocks that you know are about to go down.

Dividend stocks – This is pretty straight forward. This strategy is just where you find stocks that pay a decent sized dividend and hold them for the guaranteed income. It is always good to have these in any portfolio, just make sure you aren’t too involved with dividend stocks.