Stock trading strategy
From Investing Wiki
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Methods for stock investment
A stock trading strategy is a method of investing developed and adapted by the individual investor. The strategy might be completely arbitrary, but if it's important to the investor, she might as well stick with it. This way you can "plan the trades", rather than find yourself swept away by the emotion that comes from risking real money in a trade.
Stock trading strategies will be based on the personality of the investor primarily, as well as investment goals and objectives. If your primary purpose with an investment is a quick return, you will tend to trade differently than someone looking for long term income.
Possible stock trading strategies
There are a number of stock trading strategies available to you, many in commercial format. The strategy you pick can range from free to very costly, if you sign up for a newsletter or software. Be aware that no investing strategy is safe, and all stock market investing can result in a complete lost of capital.
- Dollar Cost Averaging
- Doubling down
- Buy and hold
- Dogs of the Dow
- CANSLIM [1]
- Stock trading system
Personal choice
The stock trading strategy you pick, in the end, is not important. What is important is that you understand the system completely, and can explain every pick you make. If your thoughts are muddled concerning why you have decided to make a certain investment, the outcome might be based on emotion, rather than reason.
