Selecting the best trading system among several strategies in stock trading is very difficult and it is good to be familiar with few kinds of stock strategies. Selecting the right stock trading method becomes the main part in successfully planning for the stock trading. Using various strategies associated with few combined tools such as fundamental analysis or technical analysis, a person can make the highest chance of success. This article explores many types of stock trading strategies based on long term investing and short term investing.

The first one is momentum stock trading, which is also called as trend trading, and this is mainly based on performing research and finding stocks that are on high strength. The other trading type is penny stock trading, a trading done with low priced securities with value below $10.00 per share. Insider following trading system is a type of trading that involves performing some research on main insider trade transactions that are registered under SEC. Shorting stocks is a procedure to benefit from a decline in the price of stocks.

News trading is another kind of stock trading where trading is done on trades, which depends on real-time news and normally equipped towards day trading. The gap trading is a kind of stock trading where the trades are performed on the opening gap at the extreme level, either placing at higher or lower. The extended hour trading is again another trading, which is separated into pre-market trading and after hours trading. Pre-market trading takes place from 7.30 am to 9.30 am and after hours trading takes place from 4.00 pm to 7.00 pm, and the hours approachable are very particular to the trade brokers.

ETF trading system is a trading system that set out risk in one specific sector and this trading system is mostly linked with momentum trading system. Elliott wave principle depends on investor psychology, moving stock prices, and understanding stock patterns. Fibonacci trading strategy is a kind of technical analysis that depends mainly on the belief that price of stocks will go back over again to resistance levels or specific support. Trading stock options is a kind where a person is normally given the right to sell or buy stocks and shares at a given price and intraday trading strategy is the trading the stock or ETF of an individual by using of multiple asset analysis. All the above stock trading types are normally used in daily stock trading.