The best trading strategy for stocks is to make the most profit with the least amount of money, and the best trend is to buy when it is about to rise and sell when it is about to fall. How to do this is the dream of all stock investors, even Warren Buffett, Sharon Davis, these experts are also trying to find this strategy to make perfect trades.
Combined with so many years of investment experience and some of the classic words in experts’ masterpieces, AVA summarizes the stock selection skills and money management in stock investment for you.
First of all, we should choose the stock which is more active and the price of the stock is more fluctuant to be the trading object. In this way we can gain profits in the space of a sharp rise in the stock market.Second, we should choose some relatively high-status enterprise stocks to trade. Just like in a war, most time only the large forces can win. In the large market, the small interests of the retail investors are not enough to satisfy the appetite of the major investors. Only a few make a lot of money to make a profit, so follow the main force earlier, the greater profits can gain.Third, we have to choose those low price-earnings ratio stocks as investment targets, one may not earn a proportional amount of money by just investing those big and rich companies. Investment relies on the upward trend of the stock, the lower earnings rate of the company, the higher increase rate will be, so that the company can rise rapidly. Finally, under the same circumstances, we can choose the smaller capital stock as the investment object, because the circulation stock is small, the influence is tiny, so we can further understand the main force, control stock investment ourselves.
Technically, we choose the buying opportunity, Usually those daily lines above MACD and below the fixed value of KDJ index and stocks that rose more than 1% that day. In addition, we can also pay attention to those continuous decline stocks, because things will develop in the opposite direction when they become extreme, stock prices will have a reverse upward trend after falling to a certain point.
For stock investment, a stop-loss is indispensable, at the beginning, the stop-loss should be below 1% of the lowest price.Stop-loss changes vary as stocks rise, but it is better not to change too much so that the risk of stock investment is smaller.When the stock falls, we can not lower the stop-loss level, we have to adhere to the previous day's stop loss, because each reduction will reduce the stop loss level, it is the same as no stop-loss.
Finally, in terms of capital management, we need to do a good financial analysis. The selling time is when the stock has fallen below its stop-loss level in the first 10 minutes or when the stock has reached a relatively high level. Every time we buy a stock, don't put your eggs in one basket.
Stock investment is a kind of learning, the quality of learning directly affects the change of capital. Only combining theory and practice and echoing information and experience, can we choose better stocks and gain more profits.
Trading Online Stock at AvaStocks
With AvaStocks, you can buy stock CFDs from global giants’ CFDs with one click. You can trade large companies listed on exchanges such as NYSE, NASDAQ and LSE through our stock CFDs without the fees or restraints associated with traditional stock trading.
· Your trading leverage can be magnified up to 20:1.
· All major exchanges: NYSE, NASDAQ, LSE, etc.
· One-stop trading for multiple categories of products such as stocks, indices, commodities, etc.
· Multilingual online customer service support.
· A broker with six global regulatory licences to give you a better trading experience.