Some Common Strategies to Trade in the Stock Market

   StockMarket is a lucrative business for many people. Different traders approach the Stock market to gain benefit from the regular price movements involved. There are many strategies which are common in the Stock Trading.

   There are people which are involved in to it. Some common strategies involved are indicator based strategies, money management based techniques, risk management technique and other self devised techniques.

   This is an article about some of the common strategies which are used in the StockMarket. The first hour breakout strategy, the pair strategy, the grid strategy and spread techniques are some of the common strategies involved in the Stock market.

   In the first hour strategy, the market movement in the first hour is observed. The range of the market, i.e the high and low in the first hour is identified and the breakout from the range is watched for. If the breakout from the high is observed, the uptrend is anticipated. 

   

   Similarly if the breakout from the low is watched the downtrend is anticipated to continue. Thus the appropriate long and short positions can be taken on the start of uptrend and downtrend.

In the pair strategy, a pair is first selected which has similar behavior and characteristics.

   Thus if the two stocks are selected as a pair, the two stocks will show similar behavior in similar market conditions. The deviation from the pair is observed and once the divergence has been observed, the movement towards the mean position can be utilized to benefit from the buy and sell trades.

    In the grid strategy a grid of the buy and sell calls is placed around the current market price. The buy and then sell calls are placed above the CMP and sell and then buy are placed below the CMP. The grid strategy is a high probability strategy.

   where the traders can be benefitted from the general market conditions.The above strategies are extensively used to generate accurate stock market tips and intraday trading tips.  

Trading Strategy based on MACD Divergence

   The divergence strategy is one of the most important strategies, which can be utilized to trade profitably in the Stock Market. In the Divergence based technique, the divergence between one of the momentum indicators and the price is observed and the trend reversals are anticipated.  

   Both RSI and MACD can be used as the indicators for the divergence technique. RSI stands for Relative Strength Index and MACD stands for Moving average Convergence and Divergence.

   In case of divergence technique, a divergence between the price and the indicator is searched for. The divergence can be bullish divergence or bearish divergence. The bullish divergence indicates the start of an uptrend. Similarly the bearish divergence indicates the start of bearish trend.

   The above strategy can be used to generate accurate stock market tips. MACD is extensively used for the divergence analysis. The histogram of the MACD is drawn and the lines indicating the divergence between the peaks of the histogram are drawn.

   The indicators like CCI are also extensively used in Divergence analysis. The divergences are also of types, hidden divergence and absolute divergence. While using the divergence it should be clear that the success rate of the divergence trading is between 70 to 80 Percent.

    Not all the trades are profitable, but if the trader decides a favorable risk reward ratio, it will lead to the overall success of the traders. One can decide the Stop Loss of the trades little below or above the previous peak.

   The above strategy is extensively used by the Technical analysts and one can take help of reputed advisory firm like Money Classic Research which provides complete support and advices over the type of strategies discussed above. Money classic Research is an advisory firm which is reputed and also ISO certified. They provide accurate equity tips with proper stop loss levels.

Stock market Grid Trading Strategy

Different traders trade in different fashion to get the benefit out of the market movement. Some traders rely on technical analysis and other use the advice and support of some advisory firm. There are many other traders who employ the strategy based on risk management and wealth management to get benefit from the market.

The grid strategy is one of the strategies which can be used to get good profits from the market. In this strategy a grid of buy and sell signals is placed around the current market price. Thus above the current market price, the buy and sell signals are placed at regular intervals. Similarly below the current price level first the sell and buy levels are placed at regular intervals. Thus in this strategy, a grid is formed which is found beneficial in most of the cases.

The grid found in the grid strategy is a probabilistic grid which has a high chance of success. The grid is beneficial the most in case when the market is in strict uptrend and strict down trend. The grid gives the loss in case of strict range bound market. The grid strategy is a high probability strategy in which the chances of success are more than the failures. However, in the extreme situations, a big loss can be incurred which can neutralize all the profits made. Hence one must take the grid strategy with caution.

One can take the help of reputed advisory firm likeMoney classic research for practicing the strategy like stated above. Money Classic Research is an advisory firm, which is reputed and also ISO certified. They act as knowledge hub for the strategies and tactics to trade effectively in the Stock Market. They provide accurate intraday trading tips and equity tips with proper stop loss.   

How Should I Invest in Stock Market?

Investing in stocks is a good option, if you want to multiply your money. Or, if you have been running away from this dealing, it is time that you take some changes in the way you think about the stock markets. Many specialized traders can make a few hundred to a few hundred thousand a year, depending on the competence of the trader and the system of trading which he resorts.  Knowing the trading strategies and applying them in the right way leads to success in trade.  

In the stock markets there are many portfolios that a trader can choose – they can trade in share and commodities.  In India retail traders mainly trade in stock futures and options because of sheer volumes. Intraday fashion, short term or long term investments are some options.  Cash, Futures and Options are the other financial instruments before the traders to pick.

If you are completely not familiar with the idea of trading strategies, then the first part to find out the good stock advisory firm established. The trader can take the help of stock advisory firms which provide accurate stock market tips.

These advisory firms have expert technical analysts, who do in-depth technical analysis for anticipating the market movements. Money Classic Research is one among them giving varieties of ideas, by which a trader/investor can familiarize himself. MoneyClassic Research having a team of eminent researchers and technical analysts who provide highly selected stock market tips and recommendations on stock after evaluating the market conditions for traders to earn consistent profit.  Stock proposal services provided by Money Classic Research are self-explanatory since all levels are clearly mentioned in our tips which assist the trader to make right start in the right time.

A detailed view on Indian Stock Market - Money Classic Research

In India the Stock Market is a lucrative business for many people. The stock market business can be started with minimum resources and there are fair chances of making profits. Thus Indian stock market is a better avenue for small investors as well as big firms.

In India the Stock Market operates through its exchanges. The BSE and NSE are the major exchanges of Indian Stock Market. BSE stands for Bombay Stock Exchange and NSE stands for National Stock Exchange. The BSE has an index sensex and NSE has Nifty as its index.

The traders can buy and sell the stocks which are listed on these exchanges. The stocks with their current prices are listed on the exchange. The price of the stocks on the exchange continuously fluctuates. The price of the Stocks on the exchange changes, due to change in demand and supply. The more is the demand of the stock the higher its price will be. Similarly when the demand of the stock goes down, its price decreases.

The traders trading in Indian Stock Market have the options of trading in the cash, futures and Options segments. In the cash segment the traders pay for the current price of the stocks. In the futures segment a future contract is signed to pay for the future prices of the entities.

The new traders usually take the help of advisory firms like Money Classic Research, which is a reputed advisory firm in Indore. They provide free stock market tips for intraday for Indian stock market. Money Classic Research is SEBI registered and also ISO certified.