Stock Trading Strategies

Stock trading has a flamboyant image of making quick and easy money and this can be irresistible to investors. Trading can be beneficial, but investors need to develop a sound understanding of the trading principles involved.
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Day Trading Resistance Breakouts
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.
Swing Trading the Pennant
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.
High Volume Breakouts to New Highs
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 All-Time Highs
When trading all-time highs, traders typically look for a good entry point and one off the best is a pullback.
High Volume Rallies
Trading high volume rallies is a common strategy which often leads to quick profits over a few days.
Intraday Strength
Strong intraday rallies can continue through to the following day and show up on daily charts as wide range days with strong closes.
The Day Trader
Day trading simply means to enter and exit a position within the same trading day. There are numerous day styles each with different objectives.
The Swing Trader
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.
The Position Trader
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.