There are many strategies which are followed in the Stock market trading. Some of the common strategies involved are:
- First Hour Breakout Strategy
- The Arbitrage Strategy
- Gap Strategy
- 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.
Strategies from Experienced Traders
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 Stock Market. 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. Capital Builder Financial Services is one such reputed advisory firm.
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