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4 strategies and tactics for Stock Trading

What is Stock Trading strategy?

Team success often hinges on the ability to develop and implement effective strategies and tactics. It's a bit like playing chess, except that you have more than 1 player on each side.

Crafting the perfect Stock Trading strategy can feel overwhelming, particularly when you're juggling daily responsibilities. That's why we've put together a collection of examples to spark your inspiration.

Copy these examples into your preferred app, or you can also use Tability to keep yourself accountable.

How to write your own Stock Trading strategy with AI

While we have some examples available, it's likely that you'll have specific scenarios that aren't covered here. You can use our free AI generator below or our more complete goal-setting system to generate your own strategies.

Stock Trading strategy examples

You will find in the next section many different Stock Trading tactics. We've included action items in our templates to make it as actionable as possible.

Strategies and tactics for generating returns with RSI

  • ⛳️ Strategy 1: Identify overbought conditions

    • Monitor RSI for values above 70
    • Set up alerts to notify when RSI exceeds 70
    • Analyse historical performance when RSI is above 70
    • Evaluate potential selling opportunities in overbought conditions
    • Backtest strategy using historical RSI data
    • Compare RSI indicator against other technical indicators
    • Determine asset-specific RSI levels for overbought conditions
    • Use RSI trends to predict reversals in price
    • Create a risk management plan for overbought scenarios
    • Document all findings and adjust strategy as necessary

  • ⛳️ Strategy 2: Identify oversold conditions

    • Monitor RSI for values below 30
    • Set up alerts to notify when RSI drops below 30
    • Analyse historical performance when RSI is below 30
    • Evaluate potential buying opportunities in oversold conditions
    • Backtest strategy using historical RSI data
    • Compare RSI indicator against other technical indicators
    • Determine asset-specific RSI levels for oversold conditions
    • Use RSI trends to predict reversals in price
    • Create a risk management plan for oversold scenarios
    • Document all findings and adjust strategy as necessary

  • ⛳️ Strategy 3: Implement a divergence strategy

    • Learn to identify bullish and bearish divergences
    • Monitor asset prices relative to RSI trends
    • Set alerts for potential divergence conditions
    • Use divergence signals to inform buy and sell decisions
    • Analyse historical performance of divergence signals
    • Integrate divergence analysis with other technical indicators
    • Backtest divergence strategy using past data
    • Develop criteria for validating divergence signals
    • Create a risk management plan for divergence trading
    • Continuously improve strategy based on observed outcomes
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Implement these strategies

Strategies and tactics for achieving over 20% annual returns with swing trading in 15 minutes a day

  • ⛳️ Strategy 1: Utilise technical analysis tools

    • Identify and learn to use key technical indicators like moving averages, RSI, and MACD
    • Set up your trading platform with these indicators for quick access
    • Schedule 5 minutes each day to review these indicators and identify potential trade setups
    • Use moving averages to identify trends – buy when the short-term average crosses above the long-term average and sell when it crosses below
    • Apply the RSI to identify overbought (sell signal) and oversold (buy signal) conditions
    • Analyse MACD crossovers to confirm trade signals from moving averages and RSI
    • Set price alerts on your platform for key levels identified by your technical indicators
    • Use a stock screener to quickly identify candidates that meet your criteria daily
    • Maintain a trading journal to log all trades and review weekly to refine your strategy
    • Reassess indicator settings monthly to adapt to changing market conditions

  • ⛳️ Strategy 2: Focus on high-liquidity stocks

    • Create a list of high-liquidity stocks with daily volume above 1 million shares
    • Concentrate on major market indices (e.g., S&P 500) to find suitable candidates
    • Check news and earnings reports for these stocks in your daily 15-minute session
    • Filter stocks that show price movement of at least 2% per day
    • Use price action analysis and chart patterns to confirm entry and exit points
    • Set stop-limit orders in advance to manage risk and lock in profits
    • Automate as much of the trading process as possible using limit orders
    • Review and adjust your high-liquidity stock list weekly
    • Join online communities or subscribe to newsletters focused on high-liquidity stocks
    • Apply trailing stops to maximise gains and protect profits

  • ⛳️ Strategy 3: Implement strict risk management

    • Determine the maximum amount of capital you are willing to risk per trade (usually 1-2%)
    • Set a hard stop-loss for every trade to limit potential losses
    • Define a target return for each trade (e.g., 1.5-2 times the risk amount)
    • Utilise position sizing to ensure each trade maintains the desired risk level
    • Avoid overtrading by limiting the number of trades you take each week
    • Reinvest gains selectively to compound returns without increasing risk significantly
    • Diversify trades across different sectors to mitigate sector-specific risks
    • Review and adjust stop-loss and target levels daily
    • Use trailing stops to secure profits while allowing for potential upside
    • Maintain emotional discipline by sticking to your defined strategy and rules
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Implement these strategies

Strategies and tactics for developing a Profitable Day Trading Strategy

  • ⛳️ Strategy 1: Adopt the EMA Pullback Method

    • Set up 9 EMA and 21 EMA on your trading charts
    • Choose assets that are highly liquid such as major forex pairs or SP500 futures
    • Monitor the 5-minute chart actively during the highest liquidity hours for your chosen market
    • Identify the trend by ensuring the price is above both 9 EMA and 21 EMA for a bullish trend
    • Wait for the price to pull back to the 9 or 21 EMA in the direction of the trend
    • Confirm an entry using volume spikes on breakout candles and bullish candlestick patterns
    • Place a buy stop order above the high of the pullback candle
    • Set a stop loss below the recent swing low or use 1.5x ATR for volatility adjustment
    • Establish initial profit targets at 1:1 risk-reward ratio and adjust as needed
    • Ensure total exposure to risk per trade does not exceed 1% of your account balance

  • ⛳️ Strategy 2: Utilise Effective Risk Management

    • Define your maximum risk tolerance per trade and systematically adhere to it
    • Set a daily maximum loss cap at 2% of your account balance to cease trading if reached
    • Implement position sizing methods to ensure capital preservation
    • Avoid trades during major scheduled news events to manage unexpected volatility
    • Utilise ATR to determine the appropriate market conditions and avoid low volatility trades
    • Confirm that higher timeframe trends align with 5-minute chart setups for consistency
    • Exclude trades in markets deemed to provide choppy or unclear signals
    • Define clear conditions under which you will avoid or limit leveraged trades
    • Backtest risk parameters on historical data and adjust accordingly
    • Evaluate overall performance monthly and recalibrate risk strategies if necessary

  • ⛳️ Strategy 3: Maintain Trading Discipline and Setups

    • Create a predefined trading plan specifying entry, exit, and stop criteria
    • Document every trade in detail for subsequent analysis and learning
    • Restrain from making impulsive decisions and overtrading throughout sessions
    • Monitor psychological aspects such as greed or fear which affect decision making
    • Focus only on high-probability setup opportunities termed as A+ setups
    • Commit to frequent review of strategy effectiveness and adaptability
    • Ingrain a structured routine to aid consistent and disciplined trading practices
    • Use mechanical aids like hotkeys to ensure swift execution during peak moments
    • Engage in strategy optimisation based on observed performance and market shifts
    • Develop coping strategies to manage emotional stress and minimise revenge trading
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Implement these strategies

Strategies and tactics for expanding Sterling Tour and Travel Agency into the Kenyan Market

  • ⛳️ Strategy 1: Forge strategic partnerships

    • Identify and partner with a medium-sized Kenyan tour and travel agency
    • Leverage the local partner’s market knowledge and customer base
    • Align services to meet local cultural and tourist preferences
    • Ensure clear communication channels with partners
    • Negotiate mutually beneficial terms in partnership agreements
    • Engage local travel influencers to promote joint offerings
    • Create co-branded marketing materials with local partners
    • Host joint events and travel expos to increase brand visibility
    • Develop shared objectives and performance metrics
    • Regularly review and refine partnership strategies

  • ⛳️ Strategy 2: Adapt services to local market conditions

    • Research and understand customer preferences in Kenya
    • Develop Kenya-specific travel packages including popular destinations
    • Implement a pricing strategy that reflects local purchasing power
    • Offer flexible payment options tailored to Kenyan market needs
    • Launch culturally immersive experiences like safaris and heritage tours
    • Translate marketing materials into Swahili and other local languages
    • Align services with environmental and cultural preservation initiatives
    • Conduct training sessions for employees on local customs and practices
    • Incorporate feedback from local customers into service offerings
    • Regularly update offerings based on seasonal tourist trends

  • ⛳️ Strategy 3: Enhance marketing and brand awareness

    • Launch social media campaigns targeting Kenyan travellers
    • Partner with local influencers to widen digital reach
    • Participate in local and international travel expos
    • Utilise radio and print media to reach different demographics
    • Highlight local partnerships in marketing communications
    • Develop emotional and engaging storytelling content
    • Create promotional videos showcasing Kenyan attractions
    • Establish a customer referral programme
    • Leverage customer testimonials in marketing materials
    • Conduct surveys to measure brand awareness and adapt strategies
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Implement these strategies

How to track your Stock Trading strategies and tactics

Having a plan is one thing, sticking to it is another.

Don't fall into the set-and-forget trap. It is important to adopt a weekly check-in process to keep your strategy agile – otherwise this is nothing more than a reporting exercise.

A tool like Tability can also help you by combining AI and goal-setting to keep you on track.

More strategies recently published

We have more templates to help you draft your team goals and OKRs.

Planning resources

OKRs are a great way to translate strategies into measurable goals. Here are a list of resources to help you adopt the OKR framework:

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