How to trade stocks

How to trade stocks

Today we are going to represent a list of most effective strategies which give an opportunity to reach a success in stocks' trading.

Effective strategies of stock marketing:

  • investment when reduction; it means that in permanent state of profit amount reduction all agents sell stocks, and then, when their price gets lower, purchase them and again increase stocks market price. It is a rather popular way, when an artificial panic is created because of a definite equality, and then stable condition is built on the market and stocks price see a large increase;
  • long-term strategy of investment in company's equities; agentputs up the capital in equities whichat the moment cost not very much, but allegedly have growth prospects. In this case, it is possible to get profit only in a very long-term prospect because equities increase in cost only in a few years or decades;
  • investment when growth of a company cost; it is a rather popular way for the agents who want to make money in a short-term prospect. But it is also necessary to be sure that the organization has growth prospects and current equities' cost is not a maximum and will soon grow. Adistinctivefeatureofsuchinvestmentsisthat, asarule, such stocks' price has a high level and is appropriate forexperiencedand rich agents.

    Agent or dealer-in-goods

Consideringaquestionofstocksmarketinginastockexchange, itisnecessarytosaythattherearepeoplewhojustmarketinsecuritiesandmaketheirminimumatstock broking(dealers-in-goods),and there are people who invest money in stocks and make money on it only owing to the growth of nominal value of an organization(agents).Theformerfocusesexclusivelyonreselling;theothersadmit the possibility of not only sale, but also long-term equities' preservation.



Stock market agents’ classification:

  • short-termagents; theyarecharacterizedbythefactthattheypurchasesecuritiesandotherequitieson the stock exchange for a few days or weeks. Theiraimistorealizeequitiesat a price higher of a purchasing price.Suchequitiesarenotkeptinsubjectownership;
  • mid-term agents; suchagentsarecharacterizedby the fact that they purchase stocks for up to one year. After thatthe stocks are sold;
  • long-termagents; theypurchaseequities and securities for more thanone year. Andthen they take a decision concerning necessity of stocks' selling based on analysis.


However, not only agents have their qualification. Dealers-in-goods also have it.


Stock market dealers-in-goods' classification:

Andtheonlythingthatmakesushappyisthateverymarket player makes an independent decision on who he wants to be at the moment. One and the same market player may be a long-term agent in some equities and swing-dealer-in-goods in other equities. Therearenolimits.


There are the following strategies of market players:

  • active; activestrategy– astrategythatissupposedtohaveday-to-day activity of market players by means of short-term job and getting profit. Moneyresourcesareinvestedfor the purpose of profit gettingon equities reselling;
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