| Defining your own stock market trading strategy is a | | | | you prefer to invest for the long term, then you are |
| critical step in becoming a successful investor. | | | | probably more interested in building a stock trading |
| Without creating goals and defining a plan, | | | | strategy that leverages fundamental data. Likewise, if |
| inexperienced investors jump around between | | | | you are only concerned about the short term (i.e. |
| different strategies with no clear goal in mind. | | | | day trader), then your plan should focus more on |
| Without a plan or strategy in place, a stock trader is | | | | using technical data to identify possible trade |
| bound to fail over time and leave the market as a | | | | scenarios. |
| wounded investor. | | | | - Do you Invest for Income or Growth? - Those |
| If you are new to investing and feel you need to | | | | who want to establish an ongoing income stream |
| define a stock market trading strategy, then ask | | | | from their investments are more prone to invest in |
| yourself the questions below. Even if you are an | | | | dividend paying stocks. Investors looking for growth |
| experienced investor, you may still realize that you | | | | seek out companies that reinvest their earnings back |
| need to narrow down your trading style and create | | | | into growing a company. |
| an investment plan. | | | | Final Thoughts |
| Here are 3 questions that will help you understand | | | | The 3 questions raised above are just a couple |
| how to define a stock trading strategy of your own. | | | | examples of how you can begin to define your stock |
| - What is your Risk Tolerance? - Can you handle a lot | | | | trading strategy. Think of it as a blueprint for your |
| of risk, or does it cause you more stress than what | | | | home, or business plan. Creating this plan or strategy |
| it is worth? Investors who can tolerate more risks | | | | helps an investor stay focused and on track with |
| may decided that day trading or options investing is | | | | their goals. While a investment strategy can be |
| the best stock trading strategy for them. On the | | | | updated or altered as time goes by, it still offers |
| other hand, an investor with a lower tolerance may | | | | stability that is very important for a successful |
| opt for investing in dividend paying stocks. | | | | investor! |
| - Are you a Long Term or Short Term Investor? - If | | | | |