Introduction

Finding a strategy as a new trader to have some sort of edge in this market can be an overwhelming experience. Strategies have to be changed according to the market that presents itself, so even experienced traders have to move into different strategies.

Volume Weighted Moving Average

The VWMA indicator provides the volume average price on a daily basis, and it starts anew each day. When there is a lot of trading activity (high volume) then price should be given more weight. VWAP lets traders know if they got a better than average price or not.

Simple Moving Average Trading Strategy

The simple moving average is plotted on the average closing price of a stock over a period of time. The number of closing prices for a number of time periods is added together and then divided by the same number of time periods in the average. This strategy is an indicator that can be used to determine whether a stock price will continue in a bull or bear trend.

Contrarian Investment Strategy

A Contrarian strategy does the opposite of what most traders do or what the market trends are. If the market is buying, a contrarian is selling and vice-versa. When pessimism abounds, a contrarian sees this as a buying opportunity to get the stock cheap. When optimism abounds, a contrarian will see this as the time to sell.

Conclusion

You can use these strategies in your trading and see if they fit your style. We all need to have some strategies to use in different market settings, and we can show you other strategies.

Author: Keith Kern

Learn More

Leave your comment

Related Articles: