subject: A Few Stock Trading Strategies People Use [print this page] There are a ton of creative stock trading strategies out there that people use to make money from the stock market. But all of these strategies really fall into one of 3 categories.
1. Trading the Short Term Movements
The first way people attempt to make money from the stock market is through short term trading. This is when traders will attempt to make money from the market by playing the short term movements of stocks.
Short term trading does come with it's share of risks, and that is why these traders will have a lot of losses. But by keeping the losses small and the wins big a trader can make money over the long term.
2. Momentum Investing
Just the simple fact that we have bull and bears markets proves that stocks tend to trend either up or down dispite really anything going on fundamentally. This is why trend trading was born, to catch this movement.
A trend trader attempts to catch a stock that is going up and hold onto that stock as long as it keeps going up. There is no need to know anything about the company as long as the stock keeps going up and keeps making them money.
If it starts to turn around however, it is time to get out and find somewhere else to put your money.
3. Buy and Hold For The Long Term
Another strategy is called long term investing. The idea here is to buy a fundamentally strong stock and hold onto it for the long term. If the company offers dividend paying stocks then so much the better.
Over the long term companies which are fundamentally strong should continue to grow and they should become pretty profitable investments.
Those are the 3 major strategies of investing into the stock market. Each one has its own advantages and disadvantages, but they can all become very profitable if done right.
