Successful stock trading course requires sharing on selection of stocks with reasonable fundamental, supported by uptrend share prices in a bullish stock market (for long strategy) or by downtrend share prices in bearish stock market (for shorting strategy). Short term trading mainly aims for capital gains in a few weeks or a few months, following either Buy Low Sell High, or Buy High Sell Higher strategies.
When price trend is reversed, a stock trader has to follow the exit strategy to sell the stock or even cut loss. It is risky for a stock trader to enter for short term gain but reluctant to exit as a trader when price trend is reversed, changing to a role of investor halfway, may end up Buy High Sell Low, losing in stock trading. Some overseas stock markets (eg. US) with clearer trends are more suitable than Singapore stocks for momentum trading.
A trader also has to consider the time frames of trading, from 1 day (day trading), weeks (short term trading), months (medium trading) to years (long term trading) or even decade (economic market cycle trading). Then, S.E.T. plan is required for each trading setup: Stop Loss, Entry, Target Prices. Usually for longer time frame, gap of S.E.T. prices would be larger.
Technical Analysis (TA) is commonly applied to follow the price trend for trading, either Buy Low Sell High (Swing Trading) or Buy High Sell Higher (Momentum Trading or Position Trading). Support and resistance, as well as trend lines are critical TA indicators to determine the uptrend or downtrend to judge the probability of winning.
There is a fine line in between stock trading and investing. For longer term stock trading (eg. months to years), Fundamental Analysis (FA) of company business and also country economy have to align with technical movement of share prices. Stock prices reflect both business fundamental and market emotions (greed and fear), therefore a smart trader has to differentiate market noises (emotions) from the actual strength of a stock, not to quickly abandon a strong fundamental stock with uptrend price with a tight stop loss or trailing stop setting.
Reader has the chance to learn from Dr Tee free stock trading course below to integrate the best of technical and fundamental worlds for higher probability of winning.
FREE Singapore Stock Trading Course by Dr Tee:
Master 5 Stock Trading Strategies
1) Quick profits in global stock markets with Swing Trading and Momentum Trading.
2) Apply Optimism Method in stock trading to truly Buy Low Sell High.
3) High-probability Shorting strategies for short term stock trading to profit from bearish stock market.
4) How to bridge between short term trading and long term investing with the integration of Fundamental Analysis and Technical Analysis.
5) Leverage on Global Financial Crisis to trade cyclic stocks.
View quick preview video below, Dr Tee will introduce 10 key stock investment strategies (股票投资十招) to be learned in 4hr free stock webinar:
Register Here (Dr Tee Free 4hr Stock Webinar): www.ein55.com