I’ll let you in on a little secret…
No trading style works at all times, no pattern is infinite, and no setup lasts forever.
To win as a day trader or swing trader, you have to continuously adapt your style based on your experience (and the ever-changing dynamics of the stock market).
But this isn’t something to shy away from. The variety of trading styles available is actually one of the coolest things about trading.
By developing an individual style that fits your personality, account size, and risk tolerance … you can potentially carve out a niche that other traders aren’t exploiting.
In other words, by finding your style, you might just create an edge for yourself — what every trader on the planet should strive towards.
Plus, one of these styles in particular could work perfectly with my LIVE AI BRIEFING TONIGHT, June 13 at 8 pm EST. Reserve your seat before it’s too late!
Now that you’re signed up, let’s look at four advanced trading strategies that could help you profit (you won’t believe what’s happening with #4 today)…
Advanced Strategy #1: Momentum Trading
Momentum traders seek to profit from stocks showing strong upward or downward momentum, targeting stocks with high trading volumes and rapid price movements.
The recent meme stock frenzy exemplifies momentum trading, where short squeezers harness the momentum to capitalize, often at the expense of short sellers.
And this is exactly why I’m always talking about hot sectors, hot sectors, hot sectors.
I think momentum trading hot sectors gives small-account traders the best opportunity to profit.
There’s always a hot sector. This year it’s AI and meme stocks, a year ago it was crypto and energy stocks, and before that it was work-from-home names that were going parabolic.
You don’t have to be a rocket scientist to see which sectors are running at any given time.
But executing winning trades on what you see is another story…
As a momentum trader, your edge comes from precisely timing your entries and exits.
Take the first step towards becoming a killer momentum trader and join us in the Daily Income Trader System today.
Advanced Strategy #2: Contrarian Trading
Contrarian trading is the direct opposite of momentum trading.
Contrarians take positions against the prevailing market sentiment, believing that the market often overreacts to news or events, leading to mispriced stocks.
These traders buy stocks when they’re out of favor and sell (or short) them when they are overly hyped.
For example, many contrarian traders have been shorting meme stocks since GameStop Corp. (NYSE: GME) came “roaring” back to life a few weeks ago.
This isn’t my style, as I like to go long on stocks in hot sectors. But just because it doesn’t fit my strategy doesn’t mean it won’t work for you.
After all, some of the greatest trades in history have been contrarian…
Think about Paul Tudor Jones shorting the market in 1987, or Michael Burry buying credit default swaps on the subprime mortgage market in “The Big Short” of 2007…
Everyone thought these guys were absolutely crazy until the market vindicated their predictions and they made billions.
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Advanced Strategy #3: Position Trading
Position traders are a subspecies of swing traders that take a long-term view, holding positions for weeks, months, or even years.
They aim to profit from sustained price movements by identifying major market trends.
Fundamental analysis and macroeconomic data are key to assessing the mid-to-long-term prospects of a company or sector.
Position trading can be a nice compliment to a day trading or swing trading strategy because you don’t have to monitor these trades every minute of every day.
IRIS is one of the best tools to help you identify quality swing trade ideas in stocks that you don’t have to micromanage every second. See how our AI picks stocks and gives you full reports and trade plans here.
One example of position trading is pairs trading, where you simultaneously go long and short on two opposing stocks.
This strategy has been recognized by the SEC as Wall Street’s top trading strategy across all markets because long/short hedge funds conduct most of their trades this way.
Advanced Strategy #4: Catalyst Trading
Catalyst traders focus on upcoming events that could significantly impact a company’s stock price (earnings reports, product announcements, legal decisions, stock offerings, press conferences, or changes in market conditions).
Once a catalyst is identified, traders analyze the potential impact by studying the company’s past performance, industry trends, and market sentiment.
Then, they develop a trading plan, setting price targets and stop-losses to manage risk.
Catalyst traders typically execute their trades just before the event, aiming to capitalize on the anticipated price movement.
They monitor the stock before, during, and after the catalyst, ready to adjust their positions as needed.
This is the key. Catalyst trading is all about timing. If you’re too early (or even worse, too late), you might as well be wrong.
I want you to think about catalyst trading today as the market is approaching one of the most significant events in recent memory…
TONIGHT: The Next 1000 Chapter
I believe we have a rare trading opportunity to leverage the biggest wealth explosion of Elon Musk’s career.
For over a year now, I’ve been revealing how Elon’s “Project X” could be about to change everything…
My groundbreaking presentation has already been viewed over 3.9 million times.
But since my original thesis, what Elon has been working on has evolved rapidly…
And Tesla already saw a peak 1,018% move.
***But now “Elon’s Next 1,000% Chapter” could unleash a potential $10 trillion market opportunity for AI.***
And it’s why I’m going LIVE TONIGHT, June 13 at 8 pm EST with an emergency AI briefing…
This is your last chance — Click here to secure your spot for tonight’s briefing!
Have a great day everyone. See you back here tomorrow.
Tim Bohen
Lead Trainer, StocksToTrade