While investment strategies employed by different traders can vary, there are a few proven tricks that new investors can use. Still, these strategies have different levels of risk and should be used for different investment sizes. One such strategy is the "buy and hold". With this strategy, you buy some shares and keep them for a long time. Thought by some as a risky long-term investment [http://forexmoneytrading.com/], it is usually applicable and recommended when investing in blue chip companies or other well-established companies. This way, you are putting your money into something that can grow more in the period of time you own the shares.

Next, you can employ the "top down" strategy with forex software [http://www.stocktradingsoftwarereviews.org/forex-trading-software/]. This means that you invest in the strongest sector of a market by buying its best stocks. Put simply, you will be buying the best stocks that you can find. You need to do some research on different companies before you get into this strategy. You do have to employ good timing with this strategy. In other words, you have to invest in a stock when its value is high and sell it when its value is higher. The risk that comes with this strategy is if the company suddenly experiences a fast fall. You may not be able to predict that.

The "bottoms up" strategy rounds up our top three. Unlike the "top down" strategy, you will not be looking at the performance of the company that owns the shares. Instead, you will be looking at the performance of the stock itself and base your moves on that. There are a whole lot of other helpful strategies out there. You need to know everything about stocks in order to know which strategy will suit you. If you are paying attention to the stock market and keeping a close watch at your own investments, you may be able to think up of strategy combos of your own.