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You Must Have A Strategy For This News Driven Stock Market

Submitted by Mike Swanson on Mon, 2011-08-01 12:05.

Trading stocks is a difficult process with both potential losses and gains. Many people make money on the stock market, but most lose money due to a poor understanding of stock trading strategies. Although there is no guarantees, becoming familiar with effective strategies can greatly increase your chances of making a profit.

As an individual purchases stock or shares in a company, they are essentially buying a part of that company. This stock can then be sold for either more of less than a person paid for it. The overall goal is to purchase a stock when it is cheap, and sell that stock when it has increased in value. There are some methods to improve the odds of making making money.

A very common method of trading is called momentum trading. When utilizing this method, research is done into companies. This research is done in an effort to predict the future of the stocks. If the research shows that the company will probably do well, then stocks are bought. If the research predicts a decline, they are sold.

One very popular strategy, especially for those new to the process, is called penny stock trading. The goal is to purchase stocks in little known companies in the anticipation that they will do well, in turn making a profit on the investment. The stocks come cheap but offer considerable potential to make money if the right stocks are purchased.

Many traders and investors utilize a strategy known as news trading. Basically, up to the minute news information is utilized in either the buying or selling of stocks. If news indicates that a stock will fall, they are sold quickly. If something indicates that a stock will rise, they are bought.

There are never any guarantees about how a stock will perform, making strategies very important. By utilizing proven and effective techniques, an investor or trader can exponentially increase their chances of success. It is important that you educate yourself regarding these vital methods, as there is plenty of money to be made, or lost.

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Hello. My name is Mike Swanson. I’m the best-selling author of the book Strategic Stock Trading. In a former life I used to run a hedge fund from 2003 to 2006 that generated a return of over 78% during that time frame. In fact it was ranked in the top 35 out of 5,000 hedge funds in 2005.

After I retired from the hedge fund world I setup this website and blog. If you sign up for my free weekly email list below I’ll send you an update on average about once a week on my views of the current stock market trends and share with you actionable investment ideas.

Now I cannot promise you that every stock I find will go up in value. I can’t promise you endless 100% returns as others claim they do and as all the disclaimers say past performance does not necessarily predict future performance and you can lose all of your money in the stock market.

This is reality.

What I can promise you is my dedication to doing the best I can for you.

You see the key to making money over the long-run in the stock market is to manage your risk. Once you sign up to my newsletter I’ll send you a series of educational videos and writings showing you how I use stop-loss orders to cut any potential losses and how I use my two fold formula system that combines fundamental and technical analysis to pick stocks. My goal is to risk one dollar to try to make at least three dollars in my trades by looking for stocks that are priced cheaply on a valuation basis, have high earnings growth, and have excellent chart patterns.

So join my list below and let me help guide you on your journey in the stock market.