If you are new to trading in market, then you must not feel limited with the knowledge you have. You should feel free to learn more and be able to take up responsibilities for the decisions you will take in the market. Remember, there is always room for a little improvement in your skills. You can get valuable tips from many sources and get better. Read below some valuable tips that you can use in trading in market.
In any trading in market, a trader should have a good understanding of it and have a strategy of his own, which he will stick to. If you are new to this, then you have to follow the 7 basic strategies of trading in market. These include:
Momentum Trading – Trend traders look at current market trends and try to make moves according to the trend. When you see the upward or downward trend, you can take advantage of it by trading in market. Most traders have a short term trading strategy, which means they trade in market for a day or less, but longer term traders look at long term trend and try to enter and exit a trade at least once per day. This way they can make more profit from each trade.
Clearing & Settlement – You have to clear a particular position before you can settle it, and this involves selling the securities. Sometimes you may need to buy securities. In trading in market you never want to be short of the market. So, when you clear a position, you may also need to buy securities.
Intraday trading – A person who is new to trading in market can do better with a systematic investment plan. The systematic investment plan involves buying and selling securities at pre-decided times in order to earn a good profit. The best time to trade in market is during low hours. However, there is also a time when the market is busiest. Then intranet trading becomes important.
Traders who are new to trading in market often feel that they need some time to adapt and get acquainted with the system. They then think about buying some shares when the prices are low. This strategy may not work well for a trader who knows very little about the system and its working. Therefore, in short term trading, you need to have a short term trading strategy like buying and selling the same day.