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Lesson 8 of 8
Trading Strategies
Trading Styles
| Style | Holding Period | Time Required |
|---|---|---|
| Day Trading | Minutes to hours | Full-time attention |
| Swing Trading | Days to weeks | 1-2 hours daily |
| Position Trading | Weeks to months | Few hours weekly |
| Investing | Months to years | Minimal |
Strategy 1: Trend Following
- Identify stocks above their 200-day moving average
- Wait for pullbacks to 20/50 EMA
- Enter on bullish candlestick confirmation
- Stop below recent swing low
- Target: Previous highs or 2-3x risk
Strategy 2: Breakout Trading
- Identify stocks consolidating near resistance
- Wait for close above resistance with volume
- Enter on breakout or retest
- Stop below breakout level
- Target: Measured move of pattern height
Strategy 3: Earnings Plays
- Research companies with potential earnings surprises
- Position before announcement (higher risk) or after reaction
- Manage risk carefully - earnings can cause big moves either direction
Strategy 4: Dividend Growth Investing
- Focus on companies with consistent dividend growth
- Look for Dividend Aristocrats (25+ years of increases)
- Reinvest dividends for compound growth
- Lower stress, long-term approach
💡 Getting Started
Start with paper trading to test strategies without risking real money. Once consistently profitable for 2-3 months, begin with small positions and scale up as you gain confidence.
📋 Key Takeaways
- Review this lesson's material before moving on
- Practice the concepts on a demo account
- Take notes on what you've learned