People new to the world of share trading over complicate the whole procedure of trading. Share trading is generally carried out by the share or stock holders who need an intermediate like a bank or a brokerage firm to carry out trades. Share Trading Strategy refers to plan followed by traders to earn profits in the stock market.
Some of the most popular stock trading strategies are swing trading, growth trading, value investing and day trading. This piece of article offers you an in-depth detail of each of these strategies.
4. Swing Trading: Swing brokers hold stocks over a particular period of time, for example a week or two. Generally, they trade with stocks or shares that are actively or regularly traded. These shares swing between a very low or high extreme.
Therefore, swing traders must buy shares at the low price of their value and sell the shares or stocks when their price increases.
5. Growth Trading or Investing: In this type of investing, traders invest in companies showing signs of more than an average growth. Here,the share price would be more than what it is expected to be, however according to the traders view the share value will grow to the price it has been purchased for.
6. Value Investing: It refers to a technique of share trading where traders buy shares of a company which they believe have under-priced their shares. They firmly believe that by investing in the company, the value of shares will increase it self.
7. Day Trading: It is a type of trading in which stocks and shares are bought and sold in a particular day so that there is no change in the total number of shares bought at the end of the day.
The profit or loss in this type of trading is evaluated on the basis of difference between the purchasing price and the selling price of the share. One of the major advantages of day trading is that it helps you avoid overnight shocks resulting from the stock markets. All shares are held generally for an extremely short period.
However, always remember that share trading comes at a cost. The complex nature of the share trading as well as the uncertainty and high levels of risk discourages people from becoming share traders. Moreover, brokerage firm or bank charges a particular amount of fee every time a transaction takes place.
Tags: Four, Popular, Share, Strategies, Strategy, Trading
Source: http://erotics.ws/share-trading-strategy-four-popular-strategies.html
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