It is very hard to decide between different strategies in stock trading and it is good to be familiar with some types of stock strategies. Choosing the correct stock trading strategies one chooses become the main part in planning stock trading. Using various strategies associated with few combined tools such as fundamental analysis or technical analysis, a person can make the highest chance of success. This article explores many types of stock trading strategies based on long term investing and short term investing.
The momentum stock trading is a type of trading, which is also known as trend trading, and this trading is done based on performing research and selecting stocks that are on great strength. The next trading type is penny stock trading, which a stock trading is made with low priced sureties with value under $10.00 per share. Insider following trading system is a type of trading that involves performing some research on main insider trade transactions that are registered under SEC. Shorting stocks is a process mainly developed to benefit from a decline in the stocks price.
News trading is another kind of stock trading where trading is done on trades, which depends on real-time news and normally equipped towards day trading. Other kind of trading is gap trading where the trades are placed on the opening gap at the level of extreme, either placing at higher or lower. Another type is extended hours trading, which is again divided into pre-market trading and after hours trading. Pre-market trading happens from 7.30 am to 9.30 am and after hours trading happens from 4.00 pm to 7.00 pm, and the hours accessible are very specific to the trade brokers.
ETF trading system is mainly made to spread out risk in one particular sector and this trading system is mostly connected with momentum trading system. Elliott wave principle is based on investor psychology, moving stock prices, and understanding stock patterns. Fibonacci trading strategy is a kind of technical analysis that depends mainly on the belief that price of stocks will go back over again to resistance levels or specific support. Trading stock options normally gives a person the right to sell or buy stocks at a given price and intra-day trading strategy is a type of trading the stock or ETF of a person by making use of multiple asset analysis. All the above stock trading types are normally used in daily stock trading.