In order to be successful in the stock market, you need to find your winning strategy. There are a lot of strategies in the stock market but some may work for you and some may not. It really depends on the type of person that you are and the type of instinct that you naturally have.
You can go with a strategy such as the value play where you are buying things at the very low point looking for it to escalate. You can sell option premium, be the short, the bear as they call it and be the one who is always short selling stocks. There are a ton of opportunities in the stock market and you could be the penny stock gamer even. All of the opportunities do work but the thing is that not all of them will work for you.
So let’s use an analogy one that I have used in an interview not too long ago. The concept is that if you had a bear versus an alligator, and they are fighting one another and you had to pick a winner which one would you pick. A lot of people say well the bear would win but let’s just say that I transform that context and I say now they are fighting in the swamp. Now if they are fighting in the swamp would that change your answer would it be the alligator? Many people say yeah of course now the alligator has the advantage but if we change that context again and say now they are fighting in the forest with lots of trees, than many people would switch their answer and say the bear would win.
So the context is very important. The same thing is true if you look at your environment or what is going on during your trading. So for example if you are they type of person who is very fast, driven, an A type personality who is looking to trade all of the time than you probably need to be a day trader. That is what will work for you. If you are the slow type mover, very steady and paced than you may need to be in the long term plays, the value plays. For instance the Coca-Cola stocks the Proctor and Gambles. So you need to be in those types of plays.
The fact is that you can make money with a lot of different strategies, they all work, but will they all work for you? No they will not so you need to find and hone in on what works for you and then focus on that and expand it, get better at it. The cheetah is not the fastest right away, it takes time to build up that speed. You have to grow up, keep trading, and get better at it.
The same thing goes for you. You have to find what works for you, what play works best for you. It could be the penny stocks, the big leaders of the companies, option trading, or maybe it is expiration of option premiums such as selling iron condors, butterfly spreads, or calendars. Each of them have their own advantages, and maybe you are a bear, you are the one that waits for the market crashes.
Everyone has their advantages... find yours, what works best for you and you will be much better off in your successes in the market because that is what it really is about. Otherwise you could make money with any of those strategies but not all of them will work for you.