Profitable stock trading strategy is an utmost goal of every active trader or investor. If you are serious trader you should have prepared several different trading strategies for different market situations. The stock market spends some time in uptrend and downtrend, but most of the time moves sideways. You have to use proper trading strategy to make money.

The market is constantly changing its behavior so your strategies for swing trades and position trades should be evolving constantly.

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You stock trading system should define rules to find what is the actual stock market trend and situation and what is the best trading strategy to use. It doesn’t matter if you prefer swing trading, position trading or if you are a daytrader. You should always select the best possible strategy at the time.

Key stock trading terms for stock market strategy development

A good stock market trading strategies should give you answers to these basic questions:

  1. How do I find the best pick for my strategy?
  2. How I will trade it?

These two questions should be answered in the description of your trading strategies.

But don’t worry. You find almost everything you need to trade your strategies and make money on simple stock trading web pages.

How to find stocks to trade

There are many possible ways how to find stocks to trade. You can select these stock picks using technical analysis or fundamentals.

The whole process is typically divided into these steps

  1. using a screener to make automatic preselection
  2. fine tuning your selection using another screener or using individual chart analysis
  3. creation of trade setup for the best opportunities you find

Learn more about stock screeners.

Test your strategies

You should test every your strategy before you start to use it in your trading account. You can use several different options to test your strategies:

  • backtest automatically using a good backtesting tool
  • paper trade using Excel or really a paper to note your trades
When your strategy provides positive results in these tests you should follow with real-time strategy testing with small positions. You should use 100 or 200 shares as a maximum to test stock trading strategy in real time. Here you will see if your real results are similar to results based on virtual trading.

If all these tests finish well you can incorporate such a strategy into your trading system. Now you can start to trade this strategy in your account.

How to prepare and make a trade

Here you will use basics from the previous step to define how you will find answers to the two questions above, basically, rules for market screening and rules for trade entries, exits, stops and their management.

Money management and position sizing

You should include money management rules into every single strategy. These rules can be common for your complete trading system or can be individually adjusted for every your strategy.

Stock trading strategies

Here details of some stock trading strategies that are really good and you can use them to make profitable trades.

Breakout Trading strategy:

Pullback trading strategy


Do not miss these points in your stock trading strategy

Detailed description of complete picking process I use personally you can read in my Methods How to Select the Best Stocks & ETFs