Stock Trading Strategies

Position trading is a popular trading style used by stock traders which seeks to capture a larger portion of the trend than what swing trading does.

Swing trading is a short-term trading style which seeks to trade the rallies in a stock that is trending. Candlestick charting is extremely popular with swing traders.

Day trading simply means to enter and exit a position within the same trading day. There are numerous day styles each with different objectives.

Strong intraday rallies can continue through to the following day and show up on daily charts as wide range days with strong closes.

Trading high volume rallies is a common strategy which often leads to quick profits over a few days.

When trading all-time highs, traders typically look for a good entry point and one off the best is a pullback.

Trading high volume breakouts in up trending stocks is a popular strategy amongst position traders. Quite often these breakout stocks pullback to the breakout resistance level which now acts as a support level.

Trading the Pennant chart pattern is a trading strategy that can lead to quick gains but are harder to find than Flag patterns. Pennants require a small triangle to form after a quick sharp rally.

Trading the short-term resistance breakouts is a common strategy with day traders. Quite often a stock consolidates for a couple of days before resuming its rally.