Friday, October 17, 2008

Trading strategies

Some trading strategies collected online

 

1.     Scalping

This is mainly termed for trading strategies where you sell off at the point of immediate profitability, that is, if you are satisfied, sell it and bury the hatchet, there is not need to look beyond at what happened during the rest of the day. A quick way to earn money

2.     Fading

Commonly applied to short covering, where you take some shares from the broker or the agent and then at the end of the day when the prices have come down buy those from the market and replace the ones you brought from the broker back to the, this is mainly like futures and options, Though risky as share market on loan or credit is supposed to be philosophically abhorred

3.     Daily Pivots

For maths lovers this could be interesting , as you try to go by the High of the day and the low of the day points of sales and buying , you simply sell off at the point the snake is regressing or buy at the point it is taking a u turn up               

4.     Momentum

Though a one, but if you are one of the early investors in a day , you will be happy to apply this one, mainly relying on market news, big explosive breaking news etc, you wait for things like that, which happens once in a while and then play your game and exit,

never think , what could have happened, that way you will end up thinking as to what could have happened if you were born in New York , or what could have happened if you were the son of the big B, etc

 

Anyway , generalizing the market strategies is not not easy, but this is as far as it gets in characterizing the various traders in the market, hope this helps,

In the process of reading and collecting data online about the share market, I will try to enrich this blog with as much data about the share market as possible. I will try to give it the look of a new comer to  the market to the expert stage metamorphosis program

 

               

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