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A Few Ways People Trade Stocks

By Shaun Rosenberg

There are literally thousands of stock trading strategies that people use to make money from the stock market. However all of these strategies fall into one of these 3 categories.

1. Short Term Buying and Selling

The first way people attempt to pull money out of the stock market is by doing something called short term trading. This is where traders take advantage of the short term reoccurring patterns that are created as demand rises and falls throughout the day/week/month.

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. Trend Trading

If you have ever seen a bulls market you know that stocks can trend and they can trend for years, even if there really isn’t anything to fundamentally back them up. This is where trend traders come in.

Trend traders try to catch a stock that is going up and then they will hold onto them forever, or until they break their trend and stop going up, whichever one comes first. There is no need for a trend trader to figure out why a stock is going up or when a stock is overvalued, they just need to know if it is still going up or not.

If it starts to turn around however, it is time to get out and find somewhere else to put your money.

3. Investing For The Long Term

The most common way to approach the stock market is by buying strong stocks and holding onto them for the long term. As an added benefit if the company offers dividend paying stocks then investors get a nice reoccurring cash flow which can add up over the years.

Over the long haul stocks in fundamentally strong companies should keep growing and they should become very profitable investments for their holders.

Those are the three major strategies out there for the stock market. Figuring out which one fits you best and sticking to it is the way to succeed.

For more information about the stock market visit Shaun’s site about the stock market basics

Article kindly provided by UberArticles.com

Topics: Stocks Mutual Funds | Comments Off

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Article Citation
MLA Style Citation:
Rosenberg, Shaun "A Few Ways People Trade Stocks." A Few Ways People Trade Stocks. 2 Jul. 2010. uberarticles.com. 18 Jul 2014 <http://uberarticles.com/finance/stocks-mutual-funds/a-few-ways-people-trade-stocks/>.

APA Style Citation:
Rosenberg, S (2010, July 2). A Few Ways People Trade Stocks. Retrieved July 18, 2014, from http://uberarticles.com/finance/stocks-mutual-funds/a-few-ways-people-trade-stocks/

Chicago Style Citation:
Rosenberg, Shaun "A Few Ways People Trade Stocks" uberarticles.com. http://uberarticles.com/finance/stocks-mutual-funds/a-few-ways-people-trade-stocks/


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