Many traders in share market investing are only familiar – and are stuck – with the old �Buy and Hold’ strategy. But new stock market strategies have since emerged that can enhance the traders’ chances for success, and which you can easily learn. Below are some of these new strategies for improving traders’ overall performance.
Market Timing Strategies
It is important to understand that the overall share market is very versatile and strongly trending. As such, timing is a very important factor for success. The purpose of timing the share market is to identify the right time to invest money in the share market, buy stock and sell. The right timing increases your chances for successful investing of capital in stock. You need to be smart to invest your money in the share market when there are favorable market conditions and preserving it when the conditions are less favorable. In the end, good timing helps to avoid trading losses, and greatly increases your profits.
Stock Option Strategies
Stock Option Strategies are another category of factors that can significantly increase and/or decrease the leverage and risk in your stock trading investments. Many traders have the notion that options are a risky investment, having to do with the leverage they provide. But this is a misconception, and the truth is that the original purpose of options was to remove some of the risks that come with holding stock. In fact, when you use options the right way, you can avoid a significant amount of risks.
Depending on what affects you desire, you can choose from a number of options and/or option combinations, or a mix of stock and options combinations. Any of these choices and/or combinations lead to different levels of abilities to profit when asset value(s) rise, plateau or fall. There are also stock options that can protect the value of your stock.
Stock Market Investment Strategies
Indeed, there is a distinction between favorable and unfavorable market conditions for stock trading. However, however, favorable the conditions, the advantages are not automatic. The stock market investment strategies you adopt significantly determine your ability to leverage market conditions for profits, as well as the ability to preserve your investment capital.
The more common strategies include: Portfolio Management Strategies (such as Portfolio Diversification and Capital Allocation); Position Entry Strategies (such as Re-test entry and Progressive Position Entry); Position Management Strategies (such as Profit Taking Strategies, Free Trade Strategies); and Position Exit Strategies (such as Stop Loss and Systems Exit).
Indeed, there are many strategy options to choose from and choosing the right strategies can at times be a daunting task. A good place to start is pick the strategies that minimize trading risks. In the end, the right strategy can considerably increase your chances for success share market.