Friday, 15 August 2014

Different Stock Market Strategies

Our topic is to discuss the different stock market strategies in the stock battlefield:
1. Short term strategy
2. Mid term strategy
3. Long term strategy

It's your responsibility to pick PAMpayamang strategy. Let's define and give the time line for those strategies.

1. Short term strategy is a day trading or buying and selling of stocks or securities within a day or in a week.This strategy is used by the trader, those that could manage and monitor their portfolios every day and use methods or techniques to profits from the highs and lows of stock price. Day traders used high amount of capital to take advantage of higher gains in value. This strategy needs a lot of time to study the technical concepts and different methods such as Candlesticks, SEPA, ARC, PAM Support and Resistance etc.
This is not recommended for those working full time in their jobs or businesses.

2. Mid term strategy is the positioning strategy. For the purpose of this blog, mid term is ranging from 2 weeks to 1 year. The strategy is buying at a possible bottom of the stock and selling at a pretty good amount of gains or percentage. Mid term strategy are used by position traders. GTC -Good Til Cancelled order are used in this strategy and usually preparing a buying power on the sides in case the stock goes down or setting a cut loss point and target gains. PAMers used this strategy. There is no need to monitor the stocks everyday because the target price is already set thru GTC. PAM PSE Tracker is highly recommended for monitoring the stocks especially  to avoid temptation of selling stocks at a small gains or at a loss.

Here is the link for PAM PSE Tracker: https://play.google.com/store/apps/details?id=com.athanruiz.pam&hl=en

3. Long term strategy is a value investing strategy. The strategy popularized by Sir Warren Buffet, the holding period is for a longer period of time. For the purpose of this blog, 10 years and more should be the time frame. Buy and hold strategy in which the investor is not concern with the short term fluctuations of price. The task of the investor is to buy a company below intrinsic value with sound fundamentals. The company has a competitive advantage in the industry and with an expansion or growth plans.

There are strategies not mentioned on the list such as PCA, PAM,SAM etc. I will discuss those in the following blog posts.

P.S. I would like to express my feelings to the readers of my blog especially those reading the http://pamrichfriends.com/ . I know how to accept mistakes and criticisms. One reason that I'm blogging is because I would like to share my knowledge in this field but there are times that my English grammar is not pleasing to the eye.My goal is to share my stand and  knowledge. It will be easy for you to judge my way of blogging but DID YOU ASK YOURSELF WHAT HAVE YOU CONTRIBUTED TO THIS FIELD?
I'm not angry or mad,  but I have friends and families around the forum and they could easily get hurt if I will be attacked personally. Anyways, I lived in Europe half of my life and exposed in different languages Italian, Portuguese, but I was n't able to practice the English language. I will not change my approach or improved myself because I was dictated by my audience or readers but I can guarantee that what I'm sharing is coming from my own understanding and values. In line with this post, if you don't like my blog. Please feel free to shut up or closed your eyes, it will be my pleasure.

Thank you.

Sincerely yours,

NEWBIE Mentor

2 comments:

  1. don't mind the grammar teachers sir.well i fully understood this article even with very minor errors. keep up the good work!

    ReplyDelete
  2. be a blessing to more people sir jo! more power! :)

    ReplyDelete

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