3 Best Trading Strategy In Stock Market

There are many strategies which the traders can use to trade in the stock markets. The trader can trade in the intraday fashion, short term or long term investments. Also the traders can trade in the Equities or derivatives. The financial instruments which the traders can choose are cash, futures and options. There are many strategies which the traders can follow. They can trade on the basis of technical analysis. They can also trade on the basis of latest news. Also the traders can follow some strategies devised by him or learned by an expert trader.  Some of the important intraday strategies which are followed by traders are:

1) First Hour Breakout Strategy.

2) Gap Strategy.

3) Pair Strategy.

There are other numerous strategies which the traders can follow. In the first hour breakout strategy, the trading session of the first hour is watched. The high and low of the range is considered. Then the breakout of the price levels from the high and low is seen. If the breakout is achieved from high, an uptrend is anticipated. If the low is breakout the down trend is expected. Thus the trend is always thought of formed after the first hour. In gap strategy the gap in the trade is identified. The gap is the difference between the last day’s close and next day’s open. The gap can be small or big. It can also be positive or negative. Depending on the gap and the present price movements, the long and the short positions are taken. Gap strategy is also used by many traders as an effective way to trade. In pair strategy the pair of stocks having similar price movements and price response is identified. Then the two stocks are watched for a divergence. The stocks when moves towards the mean positions fetch profits to the traders. Thus above are the methods the trader can trade effectively in the markets.