Many have the notion that making money in the stock market is attractive and comfortable, but it is not the case in the real scenario. In the real time scenario, many traders exit the market when they meet up with losses.
Although there a number of trading strategies in the form of books and videos, a lot of trial and error methods are involved while carrying out the strategies.
There are a number of trading strategies available in books and videos.
However, it takes a lot of trial and error methods in a share market strategy in order to suit individual fiscal needs.
Some of the strategies that can be adopted are:
Buy low sell high strategy
Buy low sell high is the basic and the foremost thing in the equity market. It may sound simple but not so in practice.
The trading recommendations provide to you are based on several aspects which displays a high likelihood of the price rising from a buy price.
It is necessary to fix your trading skills in order to mark the right place from where the stock has a high prospect of moving upside.
Avoid buying after a rally
When a specific stock has moved up a lot, then it is necessary to be watchful as there could be a likely reversal.
It is therefore significant that you avoid buying stocks that are at or near their all time high.
Spotting the Support and Resistance levels
While trading with technical charts, you should be competent enough to spot the correct Support and Resistance levels.
Support is essentially the area where there are highest buyers who wait to buy a stock and consequently your buy order is supposed to be placed at that level.
Resistance further is the level where the sellers are in greater part.
Finding the Trend
Trading against the trend is not advisable. It is necessary to sort out what the trend of the specific share chosen is and then buy or sell based on the trend.
It is significant to know the trend of the stock as it helps you to hold on to your trade and not sell during a correction. This will make certain of higher gains.
Choosing multiple time frame
The full scenario of the stock cannot be obtained in a single time frame chart.
A buy or sell decision has to be taken based upon the multiple time frames.
Based on this analysis, the judgment can be made, on the higher prospect of support and resistance levels.
The above mentioned strategies will widen the scope of success of your trades.