Profitable Stock Trading Strategies

Published: 25th July 2012
Views: N/A

The stock market is filled with a lot of earning potentials and opportunities. However, you have to be very wise when choosing one or more among the many stock trading strategies that are now introduced to traders while taking into consideration your plans, trading styles and goals.

Once you have chosen the most suitable trading strategy for you, you have to make sure that you stick to it no matter what. Bear in mind that if you fail to focus on your established plans and you keep on changing your strategies, then you will end up losing a substantial amount of money in the stock market. Avoid letting your emotions rule your thinking and stick to the trading strategies that you have formally experienced. Here are some of the most profitable trading strategies that you can use in the stock market especially if you are still a beginner:

1. Scalping. Originally called spread trading, scalping refers to a trading strategy wherein a trader is required to focus into gaining profits from the narrow gaps produced by the differences between the ask prices and the bid prices. It involves liquidating and establishing positions quickly, usually within just a few seconds or minutes. But despite the effectiveness of scalping, note that this is one of the most challenging trading strategies to master. You need to have a generous dose of discipline and focus to make this strategy work. Many traders enjoy using scalping because of its many benefits. These benefits include its ability to expose you to the least number of risk, giving you the chance to place more than a hundred trades every day, allowing you to battle greed since you will only target smaller profits and its ability to offer numerous trading opportunities.

2. Swing Trading. This is one of the many stock trading strategies that are now used by successful traders in the stock market. This specific strategy requires you to target the profits from stocks that are available within a one-four day range. Swing trading will also require you to use technical analysis in capitalizing changes in the prices of short-term stocks. You will also need to follow a stock for a specific period of time and spot patterns that will allow you to exploit short-term movements in stocks without competing with major stock traders. Swing trading is ideal for you if you are a day or at-home trader.

3. News Trading. This trading strategy is highly recommended for stock trading beginners. This strategy requires you to closely follow the news with an aim of identifying highly volatile stocks that are created by either good or bad news. What makes this strategy beneficial is the fact that it allows you to receive profits within just a short period of time. Note, however, that your success in using news trading lies heavily on trading at the perfect time and place.

4. Shorting Stock / Short Selling Stock. If you are in search of the most reliable and profitable stock trading strategies, then you have to make sure that you include the shorting stock strategy in your list of choices. This strategy allows you to first sell stocks before owning them. You can earn profits from this strategy once the security price of the stocks declines.


William Tan is a full time investor and trader. He run stock trading courses to help others become financially free. In his stock trading course, he teaches advanced stock trading strategies that will maximize gains and minimize losses. Sign up for a free stock trading course.

Report this article Ask About This Article

More to Explore