Strategy – Stocks
There are many ways of trading stock. The most common include:
- Borrowed (short)
Apart from the ways of trading them, there are also a number of strategies to be adopted, like the day trade, buy & hold, swing trade, etc. Each investor use his own tactics, always looking for profits. However, no strategy works well to every single investor. Some are looking for a quick result. Others focus on long term strategies, saving money for retiring. Each investor’s behavior reflects directly to the risks he takes while investing. Anxious investors buy shares and expect them to hike up shortly. If they drop even a little, they get desperate and sell them all, accumulating losses and repeating that until most of their capital is lost. However, prices float and can swing back any time.
A good strategy, indicated by many analysts, is to preferably buy shares from large companies, that pay good dividends, usually provide promising profits and lead to an income in the following years. Nevertheless, pricing is also a key aspect. It’s not good buying these companies’ stock if prices are too high. So, when an opportunity emerges and large companies are trading shares for lower prices, that is the buying time. Also, it is common to keep purchasing shares for a period, in order to settle an average pricing and a considerable number of shares.
Each investor will be finding a way of trading shares, either in the short or the long term. That means overlooking tips and hints from colleagues and even some recommendations of analysts, and neither getting impressed with market turmoils or eventual gossips. The investor must have discipline to follow the same strategy, passing through ups and downs in the short term and dedicate himself to study the market and its particularities. Find here the most used strategies for dealing with shares: