1. Buy Low Sell High
When you think of Stock Trading this is what you think of. Buying a stock low and selling it at a higher price. This is also known as "Going Long" on a stock. When buying low and selling high, one of the most important indicators to look at is the RSI. This indicator will show you when a stock is oversold and when buying volume can start moving back into this play.
Shorting a stock is when the shares are sold and the proceeds are credited to your account. Sooner or later, you must "close" the short by buying back the same number of shares (called covering) and returning them to your broker. If the price drops, you can buy back the stock at the lower price and make a profit on the difference." Simple enough you are betting the stock will fall and you profit as it crashes. This is a great technique used in Penny Stocks as when these stocks are pumped, they crash right back down.
3. Earnings Reports
Earnings Report is a quarterly filing made by public companies to report their performance. Earnings reports include items such as net income, earnings per share, earnings from continuing operations and net sales. A lot of traders study companies that will have good earnings and buy shares before the company releases its report. If the company releases good earnings there share price will rise as investors buy into the thriving company.
4. Swing Trade
Swing Trading is a short term trading method that can be used when trading stocks and options. This can be holding overnight for gap ups or gap downs or for holding a stock for a few days thinking it will go on a small run. Swing Trading can lead to very easy profits if a stock has strong positive or negative momentum.
5. Long Term Invest
Holding a stock Long Term is one of the safest ways to make money in the Stock Market, but it will also take the longest. When holding a stock long term you want to look into the companies filings, p/e ratio, future expectations, programs, and more.
6. Bounce Plays
'Buy A Bounce' A strategy that focuses on buying a given security once the price of the asset falls toward an important level of support. Traders who "buy a bounce" attempt to profit from a short-term correction or "bounce" off of the identified support. All stocks have levels off support where they have bounced in the past. Finding these areas will lead to easy buy mark where the stock will turnaround and start moving up.
7.Play Trend Lines
A trend line is a straight line that connects two or more price points and then extends into the future to act as a line of support or resistance. By connecting the bottom of each candle on a stock chart you will be able to see a common pattern or trend. By following this trend line you will be able to predict where the stock will be bouncing next and where it may be crashing.
8. Hype & Momentum
News and Volume is what brings in Hype & Momentum for Day Traders. When a brand new positive press release comes out on a company, expect big volume of buyers who push this stock up all at once. These stocks are typically low float stocks that can easily be moved. If you find these press release early enough, you will be able to ride the hot momentum up the stock and profit.
Scalping is a trading style specializing in taking profits on small price changes, generally soon after a trade has been entered and has become profitable. Scalping deals with traders buying large bulks of shares at a certain price and selling their shares only a few cents later. Since they bought so many shares, those few cents they made could lead to hundreds or thousands of dollars.