Every Pro trader follows a set of Trading Strategies which fit their style of trading, their risk appetite, personality type etc.
Strategies would also be dependent on the market – whether it is Trending or Ranging. So, we could see different set of strategies for Trending and Ranging market.
It is not necessary that every trader will get the same amount of success when they use the same strategy. That’s the beauty of trading.
Therefore, it is very important that a trader understand these factors and decide their own set of Trading strategies.
Here in this section, let’s dive into few commonly used trading strategies
Please remember, the strategies discussed here would be short term trading strategies for day traders/swing traders/position traders.
1. Trading the Trend
Trend Trading Stock Strategy is the most classical & popular trading strategy.
Trends could exist for short term (few days to 2 weeks), intermediate (month to 8 months) or long term (8 months to 2 year). So, it is used by almost many traders & investors – Swing Traders, Position traders, Fund Managers, Investors.
Learn “How to master trend trading strategy”
2. Short Sell Stock Trading Strategy
Ever wondered how Stock traders are able to make profit when the market is falling…
Check out how you can short sell & make quick profits when the stock prices are falling.
3. Candlestick Patterns Trading
Candlestick patterns gives a good indication to price action and mood of the market. They are best traded in confluence with buy/sell confirmation through other indicators.
Check out popular Candlestick Patterns that technical traders cannot live without.
4. Simple ways to Trade using Moving Averages
Moving averages can be used to identify buying and selling opportunities on any timeframe (1 min, 5 mins, 2 hrs, 4 hrs, Daily, Weekly, Monthly etc…)
Traders using different styles of trading – Scalping, Day Trading, Swing Trading, Position trading or Investors use different Moving Averages to make their trade decisions.
When the stock price trades above moving average price, it indicates bullishness in the stock and may give good buy signals. Similar is the case for Sell signals when Moving Average goes below stock price.
Learn 3 simple ways to trade with Moving Averages.
5. Swing Trading strategies
Learn few popular Swing Trading Strategies popularly used by leading Market Wizards Linda Raschke & Laurence A Connors
Lastly, let’s dig into one big question every new trader seeks answers for.
Do you also believe in the same?
I bet, if you ask any Pro traders, they will disappoint you.
There have never been any Holy Grail trading strategies nor could be such a strategy in any market or in times to come.
Every Pro Trader knows that well.
Trading is all about probability. Future price movements are forecasted by studying earlier price action of the stocks. That is the basis of Technical Analysis, the best tool for short term trading.
A Pro trader feels that using his strategies & trade setups, there is a high probability that the price of a stock will move in a direction he forecasted.
But trading strategies can go wrong. The best of Market Wizards can also go wrong here.
Stock Pro traders accept this fact and whenever this happens, they have a strategy handy for it.
Using a sound Trading Plan, follow trading rules & risk management is the only mantra. And that’s the most important strategy a trader needs to get used to fast.