subject: Stock Strategy - Making A Plan For Successful Investing [print this page] Are you tired of watching your money sit in high yield savings accounts or certificates of deposit where it's only earning fractions of pennies on the dollar? Do you think that your money should have to work half as hard at growing as you had to work to earn it? These days everyone is looking for a way to make the most of their savings, which means that many people have decided to get involved in independent investing. If you're thinking about making your first investment in the stock market, it's important that you have a stock strategy in place so you're not investing blind.
If you're ready to develop your own stock strategy so that you can experience success as a new investor, it's important to point out that while there are hundreds of things you'll have to worry about when you've got money invested, the whole point of the process is to make a profit. Here are many different ways to do this, and you'll have to decide whether you're interested in a profit that comes quickly or slowly over time. While long term investments are generally considered to be safer for the new investor, the short term investments are the ones that will deliver a profit much faster.
One stock strategy for turning a fast paced profit is to invest in stocks that are starting to break out of their tight consolidations at the same time there is an expansion in volume. These are the stocks that present the best conditions for buying, because they are on the move and headed in the right direction. As a short term trader, all you'll have to do is watch them and look for a chance to sell at a profit right before they peak and head back down in price.
Another important part of stock strategy for any investor is chart analysis, and while you might think that collecting and analyzing charts is the least glamorous part of investing, it is one of the most essential. Technical analysis uses information gathered in stock charts over time to make reliable predictions about what the price of the stock is going to do in the future. While it's not quite predicting the future, it can be a great way to use the trends and patterns of the market to help you decide what the most advantageous position for the future is.
by: Aaron Livingston
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