Different Strategies used in Stock Market Sai Proficient Research
There are many strategies on which the stock market trading can be based. The different traders use the strategies on the basis of Technical analysis and the principles of Risk management and Wealth Management are used.
Some of the common strategies used while trading in the stock market are: • Breakout based strategy • Gap Strategy • Spread Technique • Pair Strategy
In the breakout based strategy the range of the market in the first hour is watched. The breakout from the range after the first hour is seen as a starting point of the trend. The trend is assumed to continue in this direction.
In the Gap strategy the gap is watched for the trade. The gap is the difference between the yesterday’s close and today’s open. The gap can be positive or negative. Also the gap can have magnitude which is small or larger. Thus based on different types of gaps the different trading decisions can be taken.
In spread technique the same stock is bought and sold at the same time. The difference between the buy and sell price is known as spread. The wider the spread of the trade the more is the profit per trade. The spread technique is widely used in the case of futures trading.
In the pair strategy the pair of stocks is chosen which shows similar behavior. Then the positions of buy and sell are taken at the point of maximum divergence. The buy and sell trades are placed as the time of maximum divergence.
The advisory firms like Sai Proficient Research provide adequate stock market tips based on these strategies. The Sai Proficient Research is an advisory firm which is very reputed and is SEBI registered. The advisory firms have experienced technical analysts who on the basis of their in depth research provide accurate stock market tips.
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