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Stock Market Strategies

Monday, January 23, 2017

When it comes to share market investing, many traders are only familiar with the old "Buy and Hold"' strategy. Little do they know that there are many Stock Market Strategies that can be easily learnt, that can increase their probability of success in the share market.
Whether you are an investor or a speculator of the share market, below are some handy stock market strategies that can improve your overall performance.
Market Timing Strategies
Timing the share market is a strategy that's purpose is to identify ideal times to invest money in the share market, to buy stock and when to sell. It is true that if the overall share market is strongly trending, that your probability of successfully investing your capital in a stock which is also strongly trend is much greater.
By investing your money in the share market during conducive market conditions and preserving your capital when the market conditions are not, it stands to reason that you can side step some costly trading losses and greatly increase your overall profits.
Stock Option Strategies
One way that a stock trader can either increase or decrease the leverage and risk in his/her trading investments, is to use Stock Option Strategies. One misconception of options is that they are a risky investment because of the leverage they can provide. But the truth is stock options were originally created to remove some of the risk involve in holding stock, and if used correct, they certainly do provide that.
A trader can choose from a range of option combinations, or stock and option combinations, for a range of desired effects. Depending on which option strategy chosen, a trader has the ability profit when the asset rises in value, remains the same or declines in value. There are also stock option strategies to protected the value of your stock assets.
Stock Market Investment Strategies
There are many stock market investment strategies that a trader can use to both take advantage of conducive market conditions, and also to preserve investment capital. Some of the more common strategies are:
  • Portfolio Management Strategies > Capital Allocation, Portfolio Diversification.
  • Position Entry Strategies > Progressive Position Entry, Re-test Entry.
  • Position Management Strategies > Profit Taking Strategies, Free Trade Strategies
  • Position Exit Strategies > Stop Loss, Systems Exit.
Choosing the Right Strategies
As you can see, there are many stock market strategies out there that can greatly increase the chances of success in the share market. Strategies that minimize risk are always a wise place to start.
It's worthwhile checking out some of these strategies, and working out which suit your trading style, and incorporate a few at a time. With a bit of stock market knowledge, you can use stock market strategies to your advantage again and again, grow your trading account, and far exceed overall market performance.
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