That this recession will subside anytime soon is tantamount to an exercise in self delusion. What we should however concern ourselves with is how we can overcome it and even use it as a springboard for our stock trading strategy and success. The fact is, this global crunch has created opportunities for stock traders to even smile more to the banks than when the world economy was stable and buoyant. This article will provide you with tips on what stock trading strategies to adopt and still make money regardless of whether the market goes up or down.
Let’s start from what you must not do to trade stocks in these present uncertainties.
First of all, you need to come to terms with the reality that the era of gambling with stocks is over. You will have to, from now, treat stock trading as a real business that must be handled with all the seriousness you can muster. Yes. It is now a serious business and a lucrative one to boot.
Secondly, this is not the time to buy stocks because the prices are low. Neither should you buy stocks with sentiment as your guide. Nor should you buy stocks out of love for a stock or a company.
Thirdly, and I cannot stress this enough. Never buy stocks with money you cannot afford to lose. Don’t even try it.
The fourth point and a crucial one at that is not to trade without the strategy I am going to reveal shortly. In fact, you don’t trade without knowing the best time to buy and sell a stock.
Now to the stock trading tips and strategy guaranteed to turn this recession into a money spinner for you. More like turning this economic setback to your own comeback.
Firstly, you are to stick to the strategy I am about revealing to you. Do not, under any circumstances, add any other trading strategy which might lead to information overload and cloud your trading decisions. Ever heard of paralysis by analyses?
Secondly, you need enough capital to be able to withstand the market movements and fluctuations.
Thirdly, painstakingly search for and pick companies with low debt, steady growth and strong earnings. Companies you know are stable and sure to still be around and strong in the next five to ten years. Sampler: Coca cola.
Fourthly, concentrate on stocks that you know will thrive no matter how the economy is doing. For instance, despite this recession, people still eat. Don’t they? You can look towards these kinds of companies.
How about under priced stocks that are sure to thrive during recession? Am talking about companies that provide essential services/ products that are needed rather than wanted. Invest in such companies.
It is important to state, at this juncture, that these tips should not be taken with levity. These are strategies that have been tested and found to be working. Chew on these ones for now and watch out for more in the concluding part of this article.