“It’s far better to buy a wonderful company at a fair price than a fair company at a wonderful price.” A statement said by Sir Warren Buffet. An ace investor of the stock market.
Yes, it’s very important to follow all the discipline approach when you are planning to do investment in equities, which actually helps you to create a proper portfolio.
But what a trader can do, Yes a trader a person who many trades daily on Intraday, reading charts understanding market trends, constantly watching new and many other things he does, before taking any trade.
Being a trader is only just to do buying & selling of shares an individual should understand the reason behind it. The market actually runs on two trends, i.e. Bullish & Bearish so while doing day trading one should under some basic stock market trading strategies which will help them to perform well in the market.
Some Basic Trading Strategies are:-
It is the technique used by the trader when the market is in a bearish trend, here traders first sell the stocks which are not owned by them in anticipation of a fall in price. Buying the stock on the same day is mandatory else it will lead to an auction market with some penalty.
Here Trading done by the trader is like buying a product in one exchange or segment & selling the same product in another exchange or segment to generate riskless profit considering the cost of the transaction.
A trading strategy used by the where he buys or sells stock at a minor difference & make money due to the high volume.
Many traders use this strategy where they enter into the stock with a very short period of a few days or for a few weeks.
In this, a trader buys the stock when they have an ongoing momentum, and close the position once the momentum ends.
These are a few basic strategies a trader or any novice can use just to make his/her trading more efficient & effective.