3 Most Common Trading Strategies for a Beginner Trader
Most Common Trading Strategies for Beginners #1: Find Your Setups
Traders need to be able to focus on setups that make sense to them.
A favorite of mine is the dip and rip. It’s easy for me to understand, and it’s worked pretty well in this wild market.
You’re looking for a stock that’s up big in the morning, ideally on news. It should be a former runner. Then you start looking for a good entry.
Often, the stock will open green and then slam back down as overnight traders take profits. This is often around 9:45 a.m. Eastern. If you can get in there, you can potentially catch a reclaim of the premarket high of the day.
Most Common Trading Strategies for Beginners #2: Be Patient
You’ve got your preferred setup in mind … Now the key is to not force it.
Trade like a sniper when you see the right play. If you don’t, wait patiently for the next play. There’s plenty for you to brush up on when you’re not taking trades.
Most Common Trading Strategies for Beginners #3: Start Small
If you want to succeed at trading, first make sure you don’t fail.
Small trades are the best way to live test your trading. And small profits and losses can be a good way to help enforce trading habits that will serve you well for your entire career.