In this edition of the Online Stock trading Review we will detail two fail proof stock trading strategies. These methods have proven to be consistent winners. The recommendations are tried and true but we always suggest that you first paper trade online before investing with actual money. Let's get started:
The Fed Announcements
It is amazing how predictable is has become to watch the market teeter back and forth and usually dips down a bit prior to the release of the FED minutes or when Ben Bernanke is going to speak. I do not suggest getting in prior to the announcement but due to this being an event which definitely moves the market it can be played. One of the most successful moves is done by playing the euphoria after the announcement comes. This has been especially effective if the market has taken a significant hit prior to the announcement. Consider buying the gold stocks right after a positive announcement as you usually can ride a two or three percent gain for one or two days on this. Remember that we here at Online Stock Trading Review recommend to always paper trade online before making actual moves with real money.
Seasonality Affects Stocks
There are sectors that traditionally do well during certain time periods and others that do not. This is more of a long term swing trade and it is not the most reliable but it does carry some weight. For example, Gold does not usually do well in the summer months; tech stocks tend to go down from spring through the summer months; oil stocks usually net good returns during the heavy driving, Summer season. There are many other correlations and it wouldn't hurt to at least be familiar with them.
This article has been a small part of a large series intended to educate investors to online stock strategies that really work and will make you a better trader over the long run.
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