3 Powerful Stock Strategies For Beginners outlines key trading strategies and money management techniques. It covers: 1) Critical Point of Entry Strategy, identifying breakout moments; 2) Trading Breakouts From Consolidation, capitalizing on market shifts; 3) Inside Days Trading Strategy, using consecutive inside days for breakout prediction; 4) Range Breakout Trading Strategy, targeting significant stock moves; and 5) Greatest Money Management Strategy, emphasizing risk control with rules like the 2% Rule and compounding gains. It stresses discipline, diversification, and using tools like limit orders and stop losses to protect capital and maximize profits.
Contents
1. Critical Point of Entry Strategy …………………… ……. 2
2. Trading Breakouts From Consolidation ………………………………….. …… 4
3. Inside Days Trading Strategy……………………………… ……. 5
4. Range Breakout Trading Strategy……………………. ……. 6
5. Greatest Money Management Strategy…………………… 7
Compounding Your Gains…. …………… 9
The 2% Rule……… 10
Money Management Calculator…….. 10
Excerpts
1. Critical Point of Entry Strategy
When a stock price action crosses a support level or resistance level that is accompanied by a rise in
volatility and a significantly higher volume, the underlying asset is bought with increased momentum
and is known as the critical point of entry.
You can spot a breakout by understanding various patterns of charts, resistance and support levels, as
well as other technical analysis indicators.
Some factors to think about:
You will only be trading with companies showing growth. Basics do matter when it comes to
capturing major trends
Technical analysis is a must to quantify the risk
Understand which sectors of the market are leading
Below you will find some examples of major trend breakouts.
