Stock Market Trading Strategy for Beginners-Sai Proficient

Stock market and commodity markets seem to be an important avenue for people who want to earn good profits by investing small capital. Trading in the market is always associated with deep risks. There are equal opportunity of profits and loss in the stock market and Commodity Market Trading. 

Thus it is always advised to the trader that he must follow some strategy and then only start trading. Also he should master the trading by doing paper trade and practicing the strategy. Once he is confident about the strategy then only the trader should start trading with real money.

There are many Strategies that a trader can follow. He can use first hour strategy, pair strategy, gap strategy or spread technique of trading. The trader can follow other strategies also, besides these strategies. The spread technique mentioned above is an important and very conservative strategy for stock and Commodity Market Trading. 

In spread technique two similar stocks are identified. In one stock buy trade is initiated and in other stock sell call is initiated. The difference between the buy and the sell levels is known as spread. Thus when the stock goes up there is profit in one stock and loss in other stock. Up to the time when one stop loss is triggered there is no profit and no loss situation. When the trend continues in the same direction there is profit incurred in this case. 

Similarly if the market goes down there is no profit and no loss until one of the Stop Loss is triggered. After this if the trend continues in the lower direction there is profit incurred in this case also. Thus in both the cases of market going up or down there is profit incurred. That is why this technique is considered to be a conservative one.

For the trader who is new to the stock market they can rely on stock market tips from the Advisory Firm. These advisory firms also have analysts who also work on technical analysis and above mentioned strategies. 

There are many Strategies That a traders can follow. He can use first hour Strategy, pair strategy, gap strategy or spread technique of trading. The trader can follow other Strategies also, besides these strategy. 

The spread technique mentioned above is an important and very conservative strategy for stock and commodity market trading. In spread technique two similarly stocks are identified. In one stock buy trade is initiated and in other stock sell call is initiated. 

The difference between the buy and the sell levels is known as spread. Thus when the stock goes up there is profit in one stock and loss in other stock.

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Different Strategies used in Stock Market-Sai Proficient

There are Many strategies on which the stock market trading can be based. The different traders use the strategies on the basis of Technical analysis and the principles of Risk management and Wealth Management are used. Some of the common strategies used while trading in the stock market are:

1) Breakout based strategy

2) Gap Strategy

3) Spread Technique

4) Pair Strategy

In the breakout based strategy the range of the market in the first hour is watched. The breakout from the range after the first hour is seen as a starting point of the trend. The trend is assumed to continue in this direction.

In the Gap strategy the gap is watched for the trade. The gap is the difference between the yesterday’s close and today’s open. The gap can be positive or negative. Also the gap can have magnitude which is small or larger.  Thus based on different types of gaps the different trading decisions can be taken.

In spread technique the same stock is bought and sold at the same time. The difference between the buy and sell price is known as spread. The wider the spread of the trade the more is the profit per trade. The spread technique is widely used in the case of futures trading.

In the pair strategy the pair of stocks is chosen which shows similar behavior. Then the positions of buy and sell are taken at the point of maximum divergence. The buy and sell trades are placed as the time of maximum divergence.

The advisory firms like Sai Proficient Research provide adequate stock market tips based on these strategies. The Sai Proficient Research is an advisory firm which is very reputed and is SEBI Registered. The advisory firms have experienced technical analysts who on the basis of their in depth research provide accurate stock market tips. 

For more information Whatsapp@ +91-9755855566 or visit@ http://www.saiproficient.com/