Stock Systems

Written by Jacey Harmon
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Stock systems come in a wide variety of shapes and sizes. The right stock system depends on your investment goals as well as your investment personality. Most stock systems are found on the Internet though one can find a wide selection of books available at a local library.

The most popular stock system is the good old buy and hold theory. This theory is exactly what it implies, buy something and hold it until you need the money. This may work in times of great economic expansion but not every stock will rise continuously over a period of years. If you prefer to buy and hold it would be wise to utilize an Index or Mutual fund.

Buy and hold investing is a very long term style of investing. However there are other styles of investing that are not necessarily long term. With these systems a stock can be held from weeks to years. These stock systems utilize market timing and technical analysis to time buys and sells. Most intermediate and long term stock systems should utilize some sort of fundamental analysis to decide on investments.

Short Term Stock Systems

There is a growing contingency of short term traders. Short term traders are either day traders or swing traders that hold a stock for days at the most. These systems rely mainly on technical analysis, the study of market generated data. This style of system also can focus on story stocks and short term index trades. Any style of investing takes work, but short term trading involves the most amount of work and dedication of all the styles available.


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