Timing Stock Markets Investment
The old stock market saying tells to "buy low and sell high", which is what the strategies aim to do. However, most strategies do not aim to find the absolute bottom for a stock price. Rather, the strategies typically aim to identify trends, which often means the stock has been trending to one direction for a while before it can be identified as a trading opportunity. There are many timeframes that these strategies can try to identify the trends in. For example, online trading has brought forward an army of day traders, who try to identify these trends in intra-day basis. Many traders also work on weekly trends, and these strategies are said to be swing trading oriented. Longer term, often weeks and months, trends based strategies are called trend trading. Choosing a timeframe that you try to identify these trends with your strategy is a very personal choice. Many day trading strategies require full-day commitment, and these traders normally commit this as their full day job instead of doing it for casual investment activity. Having access to the market on a short notice is not so big a deal in trading strategies that have to do with weekly trends or longer, and mobile access to trading platforms also allow part-time traders to participate in the market whenever the trading system gives a signal to do something in the marketplace. If you don't want to build your own trading strategy that incorporates a timing element for stock market trading, you can always purchase these systems or subscribe into a signal delivery service. The downside with these systems is that you may not know the full details how they work, there are no guarantees that you will be making any money with them, and there are others who will dilute the results by doing the same trades at the same time as you do, by using the exact same system. |