A Few Different Approaches To Trading

Trading is a great way to make money in the stock market

, but there is not a one size fits all strategy. Everybody is different, so why should they trade the same way?

That is why some of the big stock trading tips out there involve finding your own path and sticking to it. That way you can find an approach that works for you and you are more likely to stick with it until you get it down.

Here are a few different examples of strategies out there that different traders will use in order to make money from the market.

1. Day Trading Stocks

Stocks are constantly changing price, even throughout the day stocks are going up and they are going down.

Day Traders attempt to catch these small ups and downs hoping to make small amounts of money consistently and over time it will add up.

2.Swing Trading

Day trading can be a good concept, but for those who do not want to sit at a computer all day, there is another option. This other option is called swing trading, it is just like day trading, except it involves trading stocks over a period of days instead of minutes or hours.

3. A Trend Trader

Stocks trend, which is why we have bull markets and bear markets. If stocks did not keep trending until they were way overpriced and then crash as people panic about their overpriced and sell, there would be no bull or bear markets, just a slow move upward. But stocks do tend to trend.

Similar to how a surfer will try to catch a wave and then ride it, a trend trader will attempt to catch a trend and ride it up.

4. Selling Stock Options

And finally there are traders who will sell options and make the premiums up front by doing trading strategies like covered calls.

The real advantage of this strategy is that you will make money on the trade up front. However you will have to risk being called out. Even with that risk it can still be a great way to make money if you put the odds in your favor.

by: Shaun Rosenberg

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