5 Strategies for Successful Stock Selling & Trading in 2019
Wednesday, February 13, 2019, 6:00 AM | Leave Comment
Want to make millions? You’re never too young to be rich, whether you’re a day trader or the head of a company that’s gone public. Or maybe you have an interest in the stock market, but you want to do it as a hobby.
Invest a little spending money, have some fun, and don’t worry too much if you lose it.
Either way, you have to learn the basics. Selling and trading stocks takes a lot of know-how and experience, even if you’re just dabbling.
Luckily, those who have been there and succeeded before you can offer their tried-and-true methods.
From there, you can find those that work best for you.
Image Source: Unsplash
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Bollinger Band
The Bollinger Band technique was developed in the 1980s. The idea is that there’s a moving average for a stock, and that average falls between a set of trading bands — one band is above the stock, and the other is below it. The center line represents the average and the other bands stand for the expected deviations of the stock.
The bands adjust themselves to the current market based on price volatility. Traders can look at the price data that falls between the bands in order to find out a lot about the stock and to follow trends. Unless prices fall outside of the bands, traders can rely on the trends they’ve mapped and they can form expectations for how the stock will behave. This is a helpful technique even in a volatile market.
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Fibonacci Trading Techniques
Fibonacci trading techniques are used to track and predict trends in the marketplace by observing retracements. A retracement is when the price of a stock temporarily reverses and goes against the predicted trend. Traders will then anticipate the stock price bouncing back and continuing on its original trend, and they’ll make an investment to take advantage of that.
Some traders depend solely on Fibonacci techniques, while others use Fibonacci simply to inform their decisions but not influence them completely. The type of trader you are — low-risk or high-risk — also influences the Fibonacci-based trading tool you choose and how much you depend on it. Low-risk traders may use Fibonacci as a general guide, while high-risk traders could design their entire day based on Fibonacci techniques.
Thanks to stock trading software, these techniques are easy to apply and use; no graphing on your own is necessary. Some social media sites even have built-in apps for tracking the stock market.
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Social Media for Audience Discovery
Practically every industry in the world can harness the power of social media, and the stock market is no different.
For example, Twitter is used to communicate investing news to followers in an immediate and concise way. By engaging with potential investors on social media, you can then encourage them to visit an optimized landing page. The sort of lead generation that social media provides is low cost or even free, which then increases the revenue you’ll get when you sell those stocks. Social media also offers a lot of opportunities for A/B testing, which is when two versions of the same marketing or outreach effort are tested to see which one performs better.
By being active on social media, companies can get closer to their target audience. The closer they are to their audience, the more they’ll learn about what they want and what will influence their stock decisions. For example, there are programs that analyze social media posts and then alert the company or investment firm when a specific keyword pops up. Businesses can then gain insight into what their audience wants and go on to develop better products or services.
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Timing for Beginners
Seasoned investors start making moves right away when the markets open. Traders who have been doing this a while can quickly pick up on patterns and make on-the-fly choices. An amateur trader should approach the market more carefully and slowly, though. Take 20 minutes or so to follow and read the market to see what it’s doing, but don’t make any choices yet. If you want to make low-risk investments, wait for the middle hours of the day, since these times are less volatile than the beginning and end of the trading day. Once you’re more comfortable trading, you can start taking risks during more volatile hours.
That doesn’t mean you can show up for a couple of hours in the afternoon and make informed decisions, though. Even if you’re not trading for much of the day, you still have to be there, watching what’s happening. This is the only way to track stocks and keep an eye on opportunities. If you’re closely tracking one or two stocks a day, you’ll have an easier time making sound decisions.
With time, you may find your interest in investments blossoming into bigger dreams of a career in accounting. Being open to studying more about accounting, as studying financial reports, tracking investment opportunities, and developing your overall analytical skills can open many career pathways.
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Social Communities That Crowdsource Knowledge
Traders can get involved in industry groups where other professionals share their experiences. This is a way to crowdsource knowledge and improve the overall literacy of the industry, and it’s especially helpful for newbies.
Stock selling and trading is a complex and confusing industry, whether you’re doing it for work or as a hobby. There’s a lot of jargon and mystique around certain trading techniques to wade through. Learning the ropes is so difficult that some people may feel like they never get to any of the action.
Social media and modern trading websites strive to uncomplicate the process as much as possible. By becoming more approachable and user-friendly, targeted social communities and platforms make it possible for even the inexperienced to get involved. Trading concepts and terminology are boiled down and explained in an easier-to-understand way. Traders can also talk to others at their current level or get advice from those who are more advanced and successful.
Have you had some luck in the stock market and are ready to expand your investment portfolio? There are all sorts of things you can invest in, whether you find stocks interesting or want something that’s more your speed.
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