Friday, 20 November 2015

Some Important Strategies Used by the Experienced Traders

Some Important Strategies Used by the Experienced Traders
The advisory firms like Money Classic Research provide adequate stock market tips with proper stop loss. The advisory firms have various technical analysts who on the basis of their in-depth knowledge provide accurate calls and tips. The trading in the stock market seems lucrative to many people as it is possible to earn good profit from the stock market. There are risks involved in the stock market and equal probability of market going up or down. It is almost impossible to predict the price movements with 100 percent accuracy. If the trader is following some strategy which has good results the chances of beneficial trades is more than the loosing trades. It is the experience of all that no strategy is 100 percent correct. There are losing trades involved in all strategies. A strategy which offers a success rate of more than 60 to 70 percent is considered to be a good strategy.

Some of the common strategies used in the intraday market are:

1) Breakout Strategy.
2) Gap Strategy.
3) Pair strategy.
4) Spread techniques.

The Breakout strategy is the strategy in which the first hour trade is watched. The range of the high and low of the first hour is considered and the breakout from the range is seen as the point of trend initiation. Thus appropriate buy and sell positions can be taken based on the trend is an uptrend or trend is a downtrend.

In the Gap strategy the gap of the last day’s close and today’s open is seen. Then the trade is based on the magnitude and type of the gap.

In pair strategy a pair of stocks having the same market response is identified. Then the deviation in the pair is observed. The trades are placed at the point of maximum deviation. The buy and sell trades are placed so that the trader can be benefited by the movement of the pair prices towards its mean.

In spread technique the buy and sell trades are placed simultaneously. The difference between the buy levels and the sell levels is considered as spread. The greater the spread the higher is the profit incurred by the trader.

The advisory firm like Money Classic Research provides accurate stock market tips in the form of buy and sells signals with proper stop loss. They use the in-depth Technical analysis along with strategies listed above to generate accurate tips on the stock market.

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