Strategic Stock Trading

STRATEGIC STOCK TRADING
By www.CandleStickForums.com

www.CandleStickForums.com
Strategic stock trading is a rational
approach to buying stocks, selling
stocks, buying options, selling
options, selling short and more.

Strategic stock trading starts with
setting goals and deciding upon a
time horizon.

Then strategic stock trading moves
on from a general overview of what
stocks to trade and how to trade
them to progressively more specifics.

Strategic stock trading looks at the
big picture in picking stocks with
growth potential, a margin of safety,
and intrinsic stock value.

Most importantly, strategic stock
trading makes use of technical
analysis with tools like Candlestick
stock charts in order to optimize
stock prices at which investors or
traders buy or sell.

There are two basic halves to
strategic stock trading.

One is the knowledge base needed
and the other is the skill set required.

Traders must learn the basics of the
stock market, how to do fundamental
analysis of stocks, and how to take
useful information from the stock
market news, financial reports, and
other information sources.

Then, in order to successfully trade
stocks, the individual must learn how
to time his stock trades effectively

Use Candlestick signals like the Doji
Candlestick in order to anticipate
stock price direction, and trade in a
disciplined manner to avoid letting
the psychology of investing get the
better of him.

In strategic stock trading the trader
develops a trading plan, trades
according to the plan, and routinely
reviews his results.

He manages investment risk with
stock trading tools such as options
trading.

At all times the trader keeps in mind
the overall goals and time horizon.

For example a person interested
only in long term investing will not
buy extremely volatile stocks.

A person with a shorter time horizon
may well invest in more risky stocks
if they have the potential for
substantial profits.

Also a day trader will typically search
out stock volatility as he will often
trade minute by minute using
Candlestick analysis to look for
potential stock price movement.

To be successful in strategic stock
trading the trader must remind
himself of the differences between
strategy and tactics.

Tactics, short term plans, are often
not successful if not directed by an
overall strategy.

However, a trading strategy is empty
without daily tactics.

The point of strategic stock trading is
to develop and follow investing and
trading plans.

It is to manage risk in such a way as
to maintain investment capital.

In daily stock trading the trader
abides by his overall strategy in
picking stocks, choosing whether to
trade options or stocks directly, and
whether to look for long term value
or market volatility.

Within the parameters set by his
overall strategy the trader will pick
individual stocks, choose buying puts
or buying calls, or choose to sit out a
questionable trade.

He will follow stocks with Candlestick
patterns and use evolving patterns to
find potential profit in stocks.

He will use his strategy as an overall
guide and his tactics to deal with the
specifics of stock trading.

Strategic Stock Trading

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