There are many strategies which are followed in the Stock
market trading. Some of the common strategies involved are:
1) First Hour
Breakout Strategy
2) The
Arbitrage Strategy
3) Gap Strategy
4) Pair
Strategy
In the case of first hour breakout
strategy, the trade in the first hour is watched. The high and low of the first
hour is monitored. Then the breakout of the high and low in the first hour is
monitored. The breakout from the high and low after the first hour is seen as
the starting point of the trend and the trend is assumed to be continued in the
same direction. Thus if the breakout from the high is obtained the trend is
assumed to be continued in the upward direction. Similarly if the breakout is
from the low of the range the down trend is assumed to be continued. Thus the
appropriate buy and sell calls can be placed when the trend starts. The
strategy is based on the fact that there is a lot of fluctuation in the first
hour of trading. After the first hour the fluctuations finish and the trend
started to build up. Thus the above strategy is used to take advantage of the
trend which is strong after the first hour or so.
Similar to the above strategy there
are many other strategies which can be used to trade effectively in the StockMarket. The stock market is always associated with risks and there are equal
probabilities of profit and loss in the trades. The chance of winning trade
increases by following a good strategy. There are many traders who take the
help of the advisory firms which provide accurate stock market tips on various
segments of Stock market. Money Classic Research is one such reputed advisory
firm.
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