Advanced Stock Trading Strategies
There are nearly as many stock trading strategies as there are stock symbols. Who knows, there may even be more. That’s both good and bad news. It’s good in that somewhere in the broad shopping list of strategies are some real good ones. The bad news is that most are probably not good and finding the good ones can be a daunting and costly task, to say the least.
I’m going to share with you a few basic principles to help with finding the best stock trading strategies and then we’ll discuss some advanced stock trading strategies that you could consider looking at.
- Simple: trading isn’t simple but your trade strategy should be. The more moving parts there are, the higher the chance that the system will break before you know it is broken. You have to understand it, both how to use it and how and why it works.
- Dynamic: your strategy should be able to adjust to market conditions. You should be able to apply it to many different charts and timeframes, but even if you have just one strategy that only works on one or a few pairs, that would still be acceptable. Much money can be made by just focusing on one or a few names.
- Focus on Directional Movement: there are many strategies that take advantage of a whole variety of factors. In keeping with point one, I find just focusing on directional movement will help you keep your eye on the ball and profit from pure price movement. Also, this style of trading makes it much easier to take advantage of the leverage and low risk trades that can be made using simple options, calls and puts.
- Completely contained tradeplan: the best strategies tell you the exact entry, exit and stop for every trade. Moreover, each trade fits into a greater tradeplan with rules that tell you when to start, when to stop and how to grow your account.
- Proven track record: obviously it makes sense to use a strategy that you can believe in. There’s no way to believe in a strategy if it doesn’t have a winning track record.
- Training: you want a strategy with nuts to bolts training that is easy to understand.
Two very effective advanced stock trading strategies can be found within the Premier Trader University; they are the PTU Strategy and the PTU Trend Jumper Strategy. Both these strategies are excellent for trading stocks. They cover everything on the above list. They are designed to keep things very simple with very few moving parts. They are easy to learn and focus on directional price movement. Each and every trade leaves you with absolutely zero doubt as to the exact price you will enter the trade as well as where you will exit the trade. They are also designed to grow as you increase your ability as a trader, which is very important too. While there are many, many strategies available, these two continue to stand the test of time and to prove themselves each and every day in the live markets. Check them out, and while you’re at it, check out www.NetPicks.com for additional advanced strategy resources.