Are you searching for a few techniques to add variety to your everyday trading activity? If so, it’s good to remember that there are hundreds of strategies, tactics, techniques, and systems out there. Some people prefer sophisticated, mathematical approaches, while others like simple versions based on non-numerical data.
Whatever your preference, it helps to occasionally break out of the routine and experiment with other ideas than the ones you’re accustomed to. For instance, it’s possible to gain a new perspective by focusing on just one or two companies, engaging in day trading, dealing exclusively with low-cost penny stocks, or testing the precious metals market. You can still keep in mind basic money management tips while experimenting with new strategies. Here are details about some of the most popular variations in ordinary securities trading.
You’ve probably heard of Wall Street specialists, professional brokers and dealers who study one company in depth and trade no other company’s shares. For everyday investors, there’s a lot to learn by following this practice as an educational technique. Honing in on a single corporation’s data, technical price movements, fundamental information, structure, and other factors can reveal much about the inner workings of the organization and the direction of its share price. Consider choosing a company you’re already relatively familiar with and observing its price movement for several days. After that, you’ll likely have a different view of its stock value, both in the long-term and short-term.
If you like the idea of liquidating all your positions before the close of each day’s business, then day trading might suit your personal style. Most trading enthusiasts who operate this way like to focus on just two or three stocks and only hold positions for short periods of time. Many people who operate this way prefer to specialize in low cap, or penny stocks because of the potential for significant percentage moves in price. If you want to learn more about using low price shares this way, begin by reviewing an informative guide on the best penny stocks to day trade.
Buy and Sell Penny Stocks
Penny stocks are shares priced well under the typical value range. Pennies tend to sell for $5 or less. Additionally, many companies are new and have management teams that are about to introduce new products or services. The overall risk profile of these kinds of shares is higher than usual, but so are the potential profits. Many people add a few of these low-cost securities to a more extensive portfolio to balance out the total risk profile.
Add Gold to the Mix
When the securities market goes into a long period of malaise or sideways movement, many investors turn to gold and other precious metals as safe haven during uncertain economic times. Multiple times in recent history, gold and gold-backed securities have done well when the major market indices perform poorly. As a general guideline, it can be wise to start slowly when adding gold to your portfolio. Also, avoid purchasing bullion due to the high cost of storage and security.
Author: Drew Allen
Bio: Drew is a financial enthusiast, seasoned blogger, music and sports fanatic. He enjoys spending time outdoors with his wife and daughter fishing and boating. He is dedicated to his 20+ year career in the banking, mortgage, and personal finance industry.